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How to calculate average revenue per account (ARPA) in Excel and Google Sheets
Topic:SaaS metricsExcel & Google Sheets
=B7/C7✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Month | MRR ($) | Paying Accounts |
| Jan | 120000 | 240 |
| Feb | 126000 | 248 |
| Mar | 131000 | 255 |
| Apr | 137000 | 262 |
| May | 143000 | 270 |
| Total | 657000 | 1275 |
=B7/C7→515.2941176471
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Step by step
- 1List each month in column A (rows 2–6). In column B, enter total MRR for that month. In column C, enter the number of active paying accounts at month end.
- 2Calculate monthly ARPA in column D: =B2/C2. Copy down through D6.
- 3Sum total MRR in B7 with =SUM(B2:B6). Sum total account-months in C7 with =SUM(C2:C6).
- 4Calculate period-average ARPA in D7 with =B7/C7.
- 5Segment ARPA by plan tier in additional columns (e.g., Starter, Pro, Enterprise) to understand which plans drive monetization.
Tips
- Count accounts, not users. If Acme Corp has 50 seats on a $2,000/month contract, that is one account contributing $2,000 to the ARPA numerator and 1 to the denominator.
- Segment ARPA by customer size (SMB, mid-market, enterprise) and by cohort year. ARPA by cohort reveals whether newer accounts are monetized more or less effectively than older ones.
- Increasing ARPA over time (without user count decline) is a sign of successful upsell motion or pricing power. Benchmark against industry comps for your segment.
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Frequently asked
Should I include freemium accounts in the ARPA denominator?
No. Include only paying accounts. Free accounts dilute ARPA and obscure the monetization picture. Track free-to-paid conversion rate separately.
How does ARPA differ from ACV?
ACV (Annual Contract Value) is the annualized value of a specific contract, often used in sales reporting. ARPA is the average across all accounts in a period. ARPA = sum of all account MRR / number of accounts.
How do I calculate expansion ARPA?
Track ARPA for each cohort over time. If accounts acquired in Q1 have ARPA of $400 after 12 months vs. $250 at acquisition, that $150 increase represents successful expansion per account.
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