Average revenue per paying user (ARPPU)

Average revenue per paying user (ARPPU) is how much money your app makes per person who paid in a period, leaving out everyone who didn't pay.

Also called ARPPU, Revenue per paying user, Revenue per payer.

In plain words

Each person who paid for Fern this month brought in $14.90.

How Apparent would say it about Fern, an example app in the live demo.

How it's worked out

ARPPU = revenue in the period ÷ people who paid in that period. $1,490 from 100 payers = $14.90.

Good to know

ARPPU is about your payers only. ARPU spreads the same money over everyone who used the app, so it's always lower: Fern's $14.90 per payer is $0.06 per user.

It rises when payers spend more: a higher price, a yearly plan, an upsell. It doesn't move when more people start paying at the same price, which is why you watch it next to the number of payers.

A big ARPPU jump with fewer payers often means one or two large purchases, not a better app. Check the payer count before celebrating.

Count each person once in the period, however many times they paid, and use proceeds (what you keep after the store's fee) rather than gross sales.

Where the number comes from

Money and payers from RevenueCat or the stores' sales reports.

Related terms

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