B2B account monetization
A SaaS company has 420,000 in MRR across 700 paying accounts.
Inputs
- Recurring revenue: 420,000
- Paying accounts: 700
Steps
- ARPA = 420,000 / 700 = 600
Result
- Average revenue per account is 600.
Calculate average revenue per account from recurring revenue and the number of paying accounts.
Result
Calculating the sample result.
ARPA is often more decision-useful than ARPU for B2B SaaS because pricing and expansion usually happen at the account level.
Inputs
Outputs
Divide recurring revenue by the number of paying accounts in the period.
ARPA = recurring revenue / paying accounts
B2B account monetization
A SaaS company has 420,000 in MRR across 700 paying accounts.
Inputs
Steps
Result
Because one account can contain multiple users or seats, so account revenue is spread across a smaller denominator.
Yes, but normalize them into monthly or annual recurring values consistently before dividing by accounts.
Keep going
Calculate average revenue per user from recurring revenue and the total number of active paying users.
Estimate how many months it takes to recover customer acquisition cost from gross-margin-adjusted monthly recurring revenue.
Estimate customer lifetime value from ARPA, gross margin, and churn rate.