Average revenue per user (ARPU) is the average revenue a business generates from each active user or account over a set period. You calculate it by dividing total revenue for the period by the number of active users or accounts in that same period. It is a per-account view of revenue, not a total, so it tells you how much value a typical customer relationship produces.
How it works
Pick a period (usually a month, quarter, or year), then divide total revenue by the number of active users or accounts. If you earned 40,000 in a month across 200 active accounts, ARPU is 200. Be consistent about who counts as “active” and whether you use gross revenue, net revenue, or recurring revenue, because switching definitions makes periods hard to compare. In subscription businesses this is often shown as ARPA (average revenue per account) or split into monthly (ARPU) and annual views.
Why it matters
ARPU shows whether growth is coming from more customers, higher spend per customer, or both. Rising ARPU alongside flat customer counts suggests you are selling more to each account. It also helps size the value of acquisition: if you know your ARPU and retention, you can estimate lifetime value and decide how much you can afford to spend to win a customer.
ARPU in B2B quoting on Shopify
B2B orders tend to be larger and less frequent than DTC, so ARPU is often a more honest signal than order count. Tracking revenue per wholesale or trade account over time shows which buyers are worth deeper attention. Because quoted deals convert to real Shopify draft orders and then paid orders, you can tie each account’s accepted quotes back to actual revenue rather than estimates. See related terms in the B2B quoting glossary, or review plan tiers on the pricing page.