ARPA is short for Average Revenue Per Account. This metric can be used to quantify a SaaS business’s average monthly recurring revenue (MRR) per account.
ARPA is calculated as Monthly Recurring Revenue (MRR) / Total number of accounts. By simply replacing the MRR with ARR, companies can easily convert this monthly metric into a yearly one. Suppose a company has an MRR of $35,000 with a total of 10 customers. Its ARPA will therefore be $3,500.