ARPPU is calculated by dividing the total revenue generated in a given period by the total number of paying users during that period. This metric is particularly relevant for apps with a freemium model, where a significant portion of revenue comes from a small percentage of users. It helps in understanding the value of paying customers to the business, separate from non-paying users.
The formula for ARPPU is:
ARPPU = Total Revenue in Period X / Total Number of Paying Users in Period X
For example, if an app generates $10,000 in a month with 200 active paying customers, the ARPPU would be $50.