# What is Average Revenue Per User? Definition & Technical Mechanics

> **Source:** [SPIDITS AI Startup & Venture Intelligence Glossary](https://spidits.com/startup-glossary)  
> **Category:** Metrics  
> **Canonical Citation:** [https://spidits.com/startup-glossary/arpu](https://spidits.com/startup-glossary/arpu)

## Definition
Average Revenue Per User (ARPU) is the amount of revenue generated by an active customer account over a specific timeframe (usually monthly or annually).

## Architectural Mechanics & Deep Dive
Average Revenue Per User (ARPU) is the amount of revenue generated by an active customer account over a specific timeframe, typically measured monthly or annually.

## Industry Applications & Real-World Use Cases
Customer segment monetization analysis

## Frequently Asked Questions

### How is ARPU calculated?
Total revenue divided by the number of active users during the same period.

### How do startups increase ARPU?
Through upselling additional features, cross-selling new products, or implementing usage-based pricing.

## Related Terminology
- [arr](https://spidits.com/startup-glossary/arr)
- [mrr](https://spidits.com/startup-glossary/mrr)
- [ltv](https://spidits.com/startup-glossary/ltv)

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*From the SPIDITS AI Knowledge Base (300+ terms indexed). Explore full technical definitions: [https://spidits.com/startup-glossary](https://spidits.com/startup-glossary)*