Average Revenue Per Account

Also called ARPA

Average revenue per account: total revenue divided by the number of customer accounts. Preferred over ARPU in B2B, where one account can hold many users.

ARPA = total revenue in a period / number of accounts

Why it matters

ARPA tells you the value of a typical customer relationship and whether you are moving upmarket. Watching it by segment shows where expansion and higher-value customers are coming from.

For example

A B2B tool earns 50 lakh a month from 500 company accounts, so its ARPA is 10,000 rupees per account.

Go deeper

16 More Startup Metrics a16z · article Average Revenue Per Account is defined here among the core startup metrics investors actually track, with how to read it honestly. Open a16z.com →

Related terms

Also in Starting Up

See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.

eChai Partner Brands