How to Calculate ARPU from Stripe Data

ARPU (Average Revenue Per User) tells you how much revenue each customer generates on average. It’s one of the simplest subscription metricsto calculate, but one of the most revealing — a declining ARPU can signal pricing problems or a shift in your customer mix.

What Is ARPU?

ARPU is calculated as:

ARPU = MRR ÷ Number of Active Subscribers

If your MRR is $25,000 and you have 350 active subscribers, your ARPU is $71.43. This tells you the average monthly revenue per paying customer.

Why ARPU Matters

• Pricing validation — if ARPU is lower than your target price point, you may have too many customers on discounted or lower-tier plans
• Growth direction — rising ARPU with stable subscriber count means you’re moving upmarket. Declining ARPU with growing subscribers means you’re adding lower-value customers.
• LTV calculation — Customer Lifetime Value = ARPU ÷ Monthly Churn Rate. ARPU is half of the LTV equation.
• Unit economics — ARPU compared to Customer Acquisition Cost (CAC) tells you whether your growth is profitable

How to Calculate ARPU from Stripe

Stripe doesn’t provide ARPU directly. To calculate it:

1. Calculate your MRR (sum of all active subscriptions normalized to monthly values)
2. Count your active subscribers (subscriptions with status: "active")
3. Divide MRR by subscriber count

The key detail is that MRR normalization must happen first. A customer on a $1,200/year plan contributes $100/month to MRR, and that $100 is what counts toward ARPU — not the $1,200.

ARPU Trends to Watch

Rising ARPU

Usually positive. Can mean customers are upgrading, you’re attracting higher-value customers, or your pricing changes are working. Combine with subscriber growth for the full picture.

Declining ARPU

A warning sign. Could mean excessive discounting, lower-tier plans becoming dominant, or high-value customers churning while low-value ones remain. Investigate which customer segment is driving the decline.

Flat ARPU

Neutral in isolation, but concerning if you expected expansion revenue from upgrades. May indicate your pricing tiers aren’t encouraging upgrades.

Automated ARPU Tracking

StripeReport calculates ARPU automatically alongside MRR, ARR, and churn:

• Current ARPU on your dashboard
• ARPU trend over time
• Included in the scenario planner for modeling pricing changes
• Delivered in daily reports alongside your other key metrics

Frequently Asked Questions

Is ARPU the same as average order value?

No. Average order value is a transactional metric (average charge per payment). ARPU is a subscription metric (average monthly revenue per active subscriber). For subscription businesses, ARPU is the more useful metric.

Should I include trial users in ARPU?

No. ARPU should only count paying subscribers. Including trial users would artificially deflate the number since they contribute $0 in revenue.

What’s a good ARPU?

ARPU varies wildly by market. Consumer SaaS might be $10–30/month, SMB SaaS $50–200/month, and enterprise SaaS $500+/month. The trend matters more than the absolute number — is your ARPU growing or shrinking over time?