Formula
ARPA (monthly) = MRR ÷ customers with MRR ARPA (annual) = ARR ÷ customers with MRR
Worked example
Figures from the sample company in every trial. Northwind Analytics (sample), September 2026.
ARPA = 161,113 ÷ 33 = $4,882 a month
Accounts, not contracts
Count customers, not subscriptions: a customer with three contracts is one account. Where a corporate group buys through several subsidiaries, decide whether the account is the group or each subsidiary, and apply the choice consistently.
Mean and distribution
ARPA is a mean, and a few large customers can dominate it. Report it by segment or plan, and show the median or a distribution where the customer base is uneven.
Reading movements
ARPA rises when existing customers expand, when smaller customers leave, or when new customers are larger than the base. Read it with the MRR bridge to see which.
How Revnewed calculates it
ARPA is MRR divided by customers with MRR, every month. The board pack states it annually.
MRR is broken down by plan, segment, industry, company type, acquisition channel, legal entity and billing currency, which shows where account size differs.
Common misstatements
- Contracts counted as accounts
- Dividing by subscriptions understates ARPA for customers with several products.
- Non-paying accounts in the denominator
- Trialing, paused and churned accounts have no MRR at the measurement date.
- One average across segments
- An enterprise segment and a self-serve segment produce an average that describes neither.