ARPU measures the average monthly revenue each paying customer generates. It's the SaaS metric that connects pricing strategy to growth requirements.
Formula: ARPU = Total MRR / Active Paying Users
ARPU determines required scale
| ARPU | Customers needed for $100k MRR |
|---|---|
| $10/month | 10,000 customers |
| $100/month | 1,000 customers |
| $500/month | 200 customers |
| $1,000/month | 100 customers |
This table explains why enterprise SaaS companies can build $10M ARR with 200 customers, while consumer apps need millions of paying users for the same revenue.
ARPU benchmarks by segment
- Consumer: $5–$20/month
- SMB: $30–$200/month
- Mid-market: $200–$2,000/month
- Enterprise: $2,000+/month
Calculate yours at the ARPU Calculator.