Formula
Payback = CAC / (monthly revenue × gross margin)
Why it matters
Tracked monthly, it feeds CAC payback and lifetime value, and changes in it show the effect of price, packaging and upgrades.
Glossary // A / Finance
What is Average revenue per account (ARPA)?
Definition
Average revenue per account is the typical revenue a customer account generates in a period, calculated by dividing total revenue by the number of accounts.