Growth
Revenue per account
Dividing by the paying account count shows how much each customer is worth per month.
The Formula
ARPA = MRR / accounts
Dividing by the paying account count shows how much each customer is worth per month.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| ARPA | Revenue per account | currency | Average monthly recurring revenue per paying customer. |
| MRR | Monthly recurring revenue | currency | The current month's normalised figure. |
| N | Paying accounts | accounts | Count of customers with an active recurring contract. |
What Each Symbol Means
ARPAcurrency
Revenue per account
Average monthly recurring revenue per paying customer.
MRRcurrency
Monthly recurring revenue
The current month's normalised figure.
Naccounts
Paying accounts
Count of customers with an active recurring contract.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate mrr page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate MRR, filed under Business. Every number the guide produces comes from substituting into this one line.