ARPU formula in Excel or Google Sheets
Put the inputs in column B from row 2, then paste the formulas below. They work the same in Excel and Google Sheets.
| Cell | What | Value or formula | Example |
|---|---|---|---|
| B2 | Monthly recurring revenue ($) | 48000 | 48000 |
| B3 | Paying customers | 320 | 320 |
| B5 | ARPU per month ($) | =ROUND(B2/B3,2) | 150 |
| B6 | ARPU per year ($) | =ROUND(B5*12,2) | 1800 |
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Frequently asked questions
- How do you calculate ARPU?
- Divide the recurring revenue of a period by the number of paying customers in that period. $48,000 MRR across 320 customers gives an ARPU of $150 per month, or $1,800 per year.
- What is the difference between ARPU and ARPA?
- ARPU divides by users, ARPA (average revenue per account) divides by customer accounts. In B2B, where one account has many seats, ARPA is usually the more useful number.
- Should free users be included in ARPU?
- Report paying customers only for revenue planning. If you include free users, call it ARPU across all users and keep it separate, because a growing free tier lowers it without anything going wrong.
About the author
Abdessamad Ghanem
Customer Experience & Customer Success Consultant · Founder of Clarivoxx
Abdessamad Ghanem works across Customer Support, Sales, Customer Success, Account Management and Partner Management. He writes Clarivoxx Insights for B2B SaaS professionals who own retention, adoption and customer outcomes.