ARPA = Recurring revenue in the period ÷ Number of active accounts
ARPA (Average Revenue Per Account) is the average revenue per account in a period: recurring revenue divided by the number of active accounts. It shows how much each customer is worth and whether the base grows through volume or price.
How it is calculated
ARPA = Recurring revenue in the period ÷ Number of active accounts in the period. It is calculated monthly (with MRR) or annually (with ARR). It helps to separate the ARPA of new accounts from that of the existing base, to see whether new customers are larger or smaller.
Example with numbers
March MRR: 240,000 with 400 active accounts: ARPA 600. In April MRR rises to 264,000 with 420 accounts: ARPA 629. The 20 new accounts contributed 12,000 (ARPA 600), so the other 12,000 of growth comes from expansion of the existing base.
How Fibady does it
Recurring revenue comes from the consolidated P&L per entity and the number of accounts is connected from Google Sheets or the CRM as a dynamic metric, so ARPA is calculated every month alongside the other KPIs, in dual currency if the group bills in several.