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Average revenue per account (ARPA)

Average revenue per account (ARPA) is MRR divided by the number of customers with MRR at the measurement date. It is also stated annually, as ARR per customer. ARPA indicates the average size of a customer relationship and moves with pricing, packaging and segment mix.

Also called
Average MRR per customer, ARR per customer
In Revnewed
Calculated in Revnewed

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.

Close a month on your own contracts

Import customers and contract line items from CSV, review the bridge and close the month. The sample company is there to compare against while you set up.

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