ARPPU

Formula

Total revenue / paying users (specify daily vs monthly)

Unit

$

Models

Subscription, Gaming

What it is

ARPPU (Average Revenue Per Paying User) measures average revenue from users who have actually paid, isolating monetization quality from the broader free or non-paying user base. The formula is total revenue divided by paying users, and the time period — daily vs. monthly — must be specified because ARPPU figures are not comparable across timeframes.

How to calculate it

Divide total revenue in a period by the count of paying users in that same period. "Paying users" should be defined consistently — typically users who made at least one purchase in the period. Clearly label whether you are reporting daily ARPPU (ARPDAU among payers) or monthly ARPPU, as daily figures will appear dramatically smaller and create confusion if mixed.

Why it matters

ARPPU reveals the monetization ceiling among your engaged paying cohort and is especially critical in gaming and subscription apps where a small fraction of users drives the majority of revenue. Tracking ARPPU alongside conversion rates shows whether revenue growth comes from expanding the paying base or extracting more value from existing payers — distinct levers with different product and marketing implications.

Benchmarks & pitfalls

According to RevenueCat and devtodev (2024–26), in gaming the top 5% of spenders generate approximately $66 per day, while typical in-app purchase (IAP) players spend $10–20 per month. For subscription apps, AI apps produce a year-one LTV per payer of approximately $30, compared to ~$21 for non-AI apps. The most common pitfall is conflating daily and monthly ARPPU — always state the denominator's time window. In gaming especially, whale concentration means median ARPPU is far below mean ARPPU, so reporting both median and mean gives a clearer picture of the distribution.