ARPU
Average Revenue Per User
ARPU (Average Revenue Per User) is the average revenue per user over a chosen period: total revenue divided by the number of users.
ARPU shows how much one user of a product brings in on average per day, week or month. The metric is used to compare monetization across traffic sources, geos, offers and periods, and to understand whether acquiring a player, depositor or subscriber pays off.
## How it is calculated
The basic formula: ARPU = total revenue for the period / number of unique users for the same period. It is important to define what counts as revenue and who counts as a user. In gambling, revenue is often GGR (gross gaming revenue, stakes minus payouts) or NGR (after bonuses, PSP fees and other deductions). In betting, the bookmaker's margin is used in a similar way. In crypto, it means fees, spreads and conversion income; in fintech and payments, fees and MDR; in dating, subscriptions and in-app purchases; in nutra, revenue from product sales.
## Where it applies and what to clarify
For casinos and bookmakers, ARPU is usually calculated per active player (someone who placed at least one bet in the period), not across all registered users, because registrations without deposits significantly understate the figure. In fintech, a user can be active without making payments, so it is necessary to define what counts as activity. In dating, ARPU depends on the share of paying users, so it is almost always reviewed together with ARPPU (revenue per paying user). In nutra, it is often more practical to count revenue per customer, accounting for refunds and cancellations.
## What affects it
ARPU grows with better conversion to deposit or paid subscription, with retention (the longer a user stays, the more cumulative revenue they generate), and with a higher average check and frequency of actions. It is reduced by bonus abuse, multi-accounting, refunds, chargebacks and low-quality traffic that brings registrations but no money.
## Common mistakes
The main mistake is comparing ARPU across different verticals or revenue models without bringing them to one basis (GGR vs NGR, gross vs net revenue). The second is calculating across the entire base, which produces a blurred figure that hides the fact that most revenue comes from a narrow high-roller group. The third is using a short period dominated by one-off events, such as promotions or bonus payouts.
## How to use in practice
FAQ
How does ARPU differ from ARPPU?
ARPU divides revenue by all users in the sample, while ARPPU divides it only by paying users. ARPPU is always at least equal to ARPU, and the gap between them shows the share of paying users in the base.
Which period should be used to calculate ARPU?
Most often a month or a cohort over the first 7–30 days after registration is used. A short period is distorted by one-off events, while a long one hides the dynamics.
Can ARPU of a casino and a crypto exchange be compared?
Not directly, because they have different revenue structures and different definitions of an active user. You can only compare dynamics within one product or indicators calculated with a unified methodology.