ARPA Formula: Exact SaaS Calculation Rules

ARPA is average revenue per account. The denominator is accounts, not users.

• RecurringRevenue: normalized recurring revenue for the chosen period.
• ActivePayingAccounts: paying customer accounts active under the reporting policy.

• Use accounts for ARPA and users for ARPU.
• Keep multi-seat customers as one account unless policy explicitly splits them.
• Use the same timing policy for numerator and denominator snapshot.

• Exclude one-time fees, taxes, and pass-through charges.
• Exclude free accounts unless a mixed monetization policy is explicitly named.
• Use normalized recurring value for annual contracts.

• Zero active accounts: metric is undefined.
• Mixed account hierarchies: parent-child account policy must be explicit.
• Usage volatility: a single month can be noisy in usage-based models.

If recurring revenue is 120,000 and active paying accounts equal 300:

The correct ARPA is 400 per account for the period.

ARPA is a recurring revenue per account metric. If users replace accounts in the denominator or one-time revenue is mixed into the numerator, the result is not strict ARPA.

Core metric pages:

• MRR
• MRR vs ARR
• ARR
• Net New MRR