CalculateY
Quick Answer
An app with $50,000 in monthly revenue and 10,000 users has an estimated ARPU of $5.00/month. If 500 are paying users, the estimated ARPPU is $100.00/month with a 5% conversion rate.
All users, including free-tier.
Leave at 0 if all users pay.
Common Examples
| Input | Result |
|---|---|
| $50,000 revenue, 10,000 users, 500 paying, monthly | ARPU $5.00/mo, ARPPU $100.00/mo, 5.00% conversion |
| $120,000 revenue, 4,000 users, 1,200 paying, monthly | ARPU $30.00/mo, ARPPU $100.00/mo, 30.00% conversion |
| $500,000 revenue, 50,000 users, 2,500 paying, quarterly | ARPU $10.00/qtr, ARPPU $200.00/qtr, 5.00% conversion |
| $1,200,000 revenue, 100,000 users, 8,000 paying, annual | ARPU $12.00/yr, ARPPU $150.00/yr, 8.00% conversion |
| $25,000 revenue, 5,000 users, 250 paying, monthly | ARPU $5.00/mo, ARPPU $100.00/mo, 5.00% conversion |
How It Works
This calculator uses the standard ARPU formula used across SaaS, mobile apps, and subscription businesses:
ARPU = Total Revenue / Total Users
ARPPU = Total Revenue / Paying Users
Conversion Rate = (Paying Users / Total Users) x 100
Where:
- Total Revenue = all revenue earned during the measurement period
- Total Users = all active users, including free-tier and non-paying users
- Paying Users = users who made a payment or are on a paid plan during the period
- ARPU = average revenue generated per user across the entire user base
- ARPPU = average revenue generated per paying user only
ARPU vs. ARPPU
ARPU includes all users in the denominator, so free-tier users pull the average down. ARPPU only counts paying users, giving a clearer picture of monetization per customer. For freemium businesses, both metrics matter. ARPU reflects overall monetization efficiency, while ARPPU shows how much paying customers actually spend.
Choosing the right period
ARPU can be calculated on any time interval. Monthly ARPU is standard for subscription services. Quarterly or annual ARPU is common for businesses with longer billing cycles or seasonal variation. The key is consistency: always compare ARPU figures calculated over the same period length.
Benchmarks
ARPU varies widely by industry and business model. Consumer mobile apps may have ARPU below $1/month, while enterprise SaaS products can exceed $1,000/month per account. Freemium businesses typically have low ARPU but high ARPPU, with conversion rates between 2% and 5% being common. Gaming apps often rely on a small percentage of high-spending users (sometimes called “whales”), creating a large gap between ARPU and ARPPU.
Worked example
A mobile app earned $50,000 in revenue last month. It has 10,000 total users, of which 500 are on paid plans. ARPU = $50,000 / 10,000 = $5.00 per user per month. ARPPU = $50,000 / 500 = $100.00 per paying user per month. Conversion rate = 500 / 10,000 x 100 = 5.00%. Daily ARPU = $5.00 / 30 = approximately $0.17 per user per day. Revenue per day = $50,000 / 30 = approximately $1,666.67. The 5% conversion rate falls within the typical range for freemium apps, and the $100 ARPPU suggests paying users are on mid-to-high-tier plans.