Average revenue per account (ARPA)
also known as ARPA · ARPU · average revenue per customer
The average recurring revenue each client brings in - total recurring revenue divided by the number of clients.
For example, an agency with $40,000 in MRR across 16 clients has an ARPA of $2,500 - a far healthier mix than 40 clients at $1,000 each, where the same revenue takes much more management to service. Watching ARPA rise shows whether the agency is moving upmarket or expanding accounts, rather than just adding small ones.
Why it matters to agencies: ARPA reveals the shape of your book: a rising figure means bigger or expanded clients, while a falling one warns you are filling up with small, hard-to-serve accounts. It is a quiet but powerful guide to pricing and ideal-client focus.
Rising ARPA signals moving upmarket or successful expansion; falling ARPA warns you are filling up with small, hard-to-serve accounts.
ARPA = total recurring revenue ÷ number of accounts
Rising ARPA usually means moving upmarket or successful upselling.
ARPA calculator
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What is average revenue per account (ARPA)?
The average recurring revenue each client brings in - total recurring revenue divided by the number of clients.
How do you calculate ARPA?
Divide total recurring revenue (MRR) by the number of active accounts.
Why does ARPA matter for agencies?
It shows whether you are growing through bigger, expanded clients or just adding small ones - which drives profitability and workload.
How do you increase ARPA?
Move upmarket, raise prices toward value, and upsell or cross-sell existing accounts.