What is Average Revenue Per Account (ARPA)?
ARPA is an expression, predominantly used in the world of SaaS, which shows how much the average account holder spends on a product in a given period of time.
How do you calculate Average Revenue Per Account (ARPA)?
ARPA can be calculated for different periods of time, for, For a month, ARPA can be calculated in the following way: ARPA = MRR / total number of customers.
If not maintained correctly, ARPA can easily become a vanity metric, as a few bigger accounts generating extremely high revenue can suggest that the company is doing better than it actually is.
