What is ARPU?
Average Revenue Per User (ARPU) measures the average revenue generated by each user over a specific time period, typically calculated monthly or daily. It's a fundamental metric for understanding your app's monetization efficiency and user value.
ARPU Formula
Example: $50,000 revenue ÷ 10,000 users = $5.00 ARPU
ARPU vs ARPPU
ARPU includes all users (paying and non-paying), giving you the average across your entire user base.
ARPPU (Average Revenue Per Paying User) only counts users who made a purchase, showing you how much paying users spend on average.
The gap between ARPU and ARPPU reveals your payer conversion rate. If ARPPU is $50 and ARPU is $2.50, your payer rate is approximately 5%.
ARPU Benchmarks by Category
| App Category | Monthly ARPU (US) |
|---|---|
| Social Casino | $15-40 |
| Mid-Core Gaming | $5-15 |
| Casual Gaming | $0.50-3 |
| Subscription Apps | $8-20 |
| E-Commerce | $3-8 |
How to Improve ARPU
Optimize Pricing: Test different price points for in-app purchases and subscriptions to find the revenue-maximizing sweet spot.
Improve Conversion: Focus on converting free users to payers through better onboarding and value demonstration.
Increase Frequency: Encourage repeat purchases through limited-time offers, bundles, and personalized promotions.
Add Revenue Streams: Combine IAP with ad monetization to generate revenue from non-paying users.