How To Calculate ARPU in Deltek Costpoint | Arithmix

ARPU, or Average Revenue Per User, is a metric that is commonly used in the business world to measure the financial performance of a company. It is a simple calculation that can provide valuable insights into the revenue generated by each customer or user of a product or service. In this article, we will discuss what ARPU is, when it is valuable to calculate ARPU, and how to calculate it.

What Is ARPU?

ARPU is a metric that measures the average amount of revenue generated per user or customer. It is calculated by dividing the total revenue generated by the number of users or customers. For example, if a company generates $100,000 in revenue from 1,000 users, the ARPU would be $100.

ARPU is an important metric because it can provide insights into the financial performance of a company. By tracking ARPU over time, a company can determine whether its revenue per user is increasing or decreasing. This information can be used to make strategic decisions about pricing, marketing, and product development.

When Is It Valuable To Calculate ARPU?

ARPU is a valuable metric for any company that generates revenue from users or customers. It is particularly useful for companies that offer subscription-based services, such as software as a service (SaaS) companies. By calculating ARPU, these companies can determine the average amount of revenue generated by each subscriber.

ARPU is also valuable for companies that offer freemium products, where a basic version of the product is offered for free, but users can upgrade to a premium version for a fee. By calculating ARPU, these companies can determine the average amount of revenue generated by users who upgrade to the premium version.

How to Calculate ARPU

Calculating ARPU is a simple process. To calculate ARPU, you need to divide the total revenue generated by the number of users or customers. The formula for calculating ARPU is:

ARPU = Total Revenue / Number of Users

For example, if a company generates $100,000 in revenue from 1,000 users, the ARPU would be:

ARPU = $100,000 / 1,000 = $100

It is important to note that ARPU can be calculated for a specific time period, such as a month or a quarter, or for the lifetime of a product or service. Calculating ARPU for different time periods can provide valuable insights into the revenue generated by users over time.

In conclusion, ARPU is a valuable metric that can provide insights into the financial performance of a company. By tracking ARPU over time, companies can make strategic decisions about pricing, marketing, and product development. Calculating ARPU is a simple process that can be done for a specific time period or for the lifetime of a product or service.

How Do You Calculate ARPU in Deltek Costpoint

Deltek Costpoint itself isn’t naturally geared towards letting you calculate complex metrics like ARPU. As an alternative, teams typically use products like Arithmix to import data from Deltek Costpoint and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Deltek Costpoint, combine it with data from other systems, and create calculations like ARPU.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating ARPU in Arithmix

Calculating metrics like ARPU is simple in Arithmix. Once you've created your free account, you’ll be able to import your Deltek Costpoint data, and use it to create natural language formulas for metrics like ARPU.

Arithmix is designed to give you the power to build any calculations you want on top of your Deltek Costpoint data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.