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800 users and 480,000 of revenue in a year
Revenue for the year is 480,000. You count 800 users on average across that year. The period is 12 months, so the monthly line can follow the FCC step.
Revenue in the period: 25% lower
Change revenue in the period to 360,000 while keeping the other example values the same.
Revenue in the period: 25% higher
Change revenue in the period to 600,000 while keeping the other example values the same.
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Quick answer
What does the Average revenue per user calculate?
What revenue does each user account for in this period? This calculator uses revenue in the period, average users, and months in the period to estimate revenue for each user immediately in your browser.
With the values currently entered, the result is $600.00 — revenue per user in the period. It also shows monthly revenue per user, users, and months in the period.
How to use the Average revenue per user
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- Check the formula and assumptions before using the estimate for a decision.
Inputs used
- Revenue in the period
- Average users — entered in users
- Months in the period — entered in months
Average revenue per user formula
Period ARPU = revenue ÷ users. Monthly ARPU = period ARPU ÷ months in the period.
Assumptions
- The FCC describes average revenue per reported unit as total revenue divided by average active units in the survey period, then divided by the months in that period. Period ARPU on this page stops before that last division.
- Use one period for revenue and users. Take refunds out of revenue when those users are also out of the count. An ending headcount and an average headcount answer different questions.
Verify the inputs
Authoritative sources
These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.
Describes average revenue per reported subscriber unit as total revenue divided by the average active units in the survey period, then divided by the number of months in that period.
Beginners’ guide to financial statementsUS Securities and Exchange CommissionScope: General investor education; US sourceWalks an income statement from sales to cost of sales, then to gross profit, operating expenses, and the bottom-line net earnings.
Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.
Practical guide
Average revenue per user example and edge cases
Average revenue per user is period revenue divided by the users in that period. The FCC then divides by the number of months, which turns the same total into a monthly figure. Both lines use the revenue, users, and months you type.
Example: 800 users and 480,000 of revenue in a year
Revenue for the year is 480,000. You count 800 users on average across that year. The period is 12 months, so the monthly line can follow the FCC step.
- Revenue in the period
- 480,000
- Average users
- 800 users
- Months in the period
- 12 months
Calculated result$600.00revenue per user in the period
Each user accounts for 600 of revenue in the year. The monthly figure is 50, which is 600 divided by 12. Use an average headcount when people joined and left during the year.
Example results use the default display profile. The calculator above follows your selected country and units.
How to read the result
- Start with the period figure. The monthly line divides it by the months you typed.
- The FCC description uses average active units in the survey period. An ending count answers a different question, so type the average when the book changed.
Edge cases worth checking
Refunds and the user count disagree
Take refunds out of revenue when those users are also out of the count. Leaving the refund in, and dropping the user, makes the average look smaller than the cash you kept.
One account covers several users
The FCC notes that one account can cover several connections. Count the unit you mean, users or accounts, and keep revenue on that same unit.
What changes the result most
Revenue in the period
Use a current amount for revenue in the period. Include fees or recurring costs that belong in the same figure.
Average users
Use the count you expect in real life. Round up when a partial users cannot be purchased or used.
Months in the period
Keep months in the period on the same time basis as the other inputs. Monthly and annual values are easy to mix up.
Try a different scenario
Small changes show whether the answer is stable or sensitive.
Revenue in the period: 25% lower
360,000$450.00revenue per user in the period
Revenue in the period: 25% higher
600,000$750.00revenue per user in the period
Average users: 25% higher
1,000 users$480.00revenue per user in the period
Common mistakes
Check revenue in the period
The FCC describes average revenue per reported unit as total revenue divided by average active units in the survey period, then divided by the months in that period. Period ARPU on this page stops before that last division. Make sure this matches the number you enter.
Keep months in the period consistent
Use one period for revenue and users. Take refunds out of revenue when those users are also out of the count. An ending headcount and an average headcount answer different questions. Use the same units and time period throughout the calculation.
Do not rely on one average revenue per user scenario
Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.
Use this result well
What revenue does each user account for in this period?
It does not replace a quote, contract, accountant, or local employment guidance.