ARPDAU: formula and revenue checks for apps

ARPDAU means average revenue per daily active user. Divide one day's app revenue by that day's unique active users. Use it to check daily monetization, then read it alongside revenue and retention before changing ads or offers.

A higher ARPDAU can hide a shrinking audience. This guide shows the calculation, how to combine days, and what to check before calling a change successful. All numbers below are hypothetical examples, not client results or industry benchmarks.

Calculate ARPDAU with matching inputs

ARPDAU = daily revenue ÷ daily active users.

Suppose your app earns $600 from ads and $400 from in-app purchases in one day. With 10,000 daily active users, total ARPDAU is $1,000 ÷ 10,000 = $0.10. Ad ARPDAU is $0.06. Purchase ARPDAU is $0.04.

Use the same date, timezone, currency, platform, and audience for both inputs. Count each active person once per day, even when they open the app several times. Define the activity event before comparing releases.

Record whether revenue is gross or net of fees and refunds. Keep that definition fixed. Reconcile delayed ad reports before reading a daily change. For subscriptions, state whether you count charges received or revenue allocated across the service period. Renewal dates can distort a cash-based daily view.

Combine days without averaging the wrong numbers

To report revenue per active user-day across a week, divide total revenue by the sum of daily active users. A person active on three days contributes three user-days. This is different from revenue per unique weekly user.

For example, Monday earns $100 from 1,000 active users: $0.10 ARPDAU. Tuesday earns $900 from 3,000 active users: $0.30 ARPDAU.

The combined figure is $1,000 ÷ 4,000 user-days = $0.25. A simple average of the daily ratios gives $0.20. That average answers a different question because it gives both days equal weight. Label your reporting method so the team knows which figure it is reading.

A higher ratio can still mean less revenue

Imagine a release lifts ARPDAU from $0.10 to $0.12, while daily active users fall from 10,000 to 7,000. Revenue falls from $1,000 to $840. The ratio rose 20%, but revenue fell 16%.

Check whether fewer low-spending users returned, acquisition slowed, or the country mix changed. Compare similar groups by install date, country, platform, and acquisition source. An aggregate increase does not prove the release caused better monetization.

If you test more frequent ads, track return rates and total revenue alongside ARPDAU. More revenue from today's remaining users may come with fewer returning users tomorrow. With very small samples, inspect individual large purchases before treating a spike as a repeatable result.

Separate the revenue sources before choosing a fix

For ads, break the ratio into impressions per active user and revenue per thousand impressions, called eCPM:

Ad ARPDAU = impressions per active user × eCPM ÷ 1,000.

Four impressions per active user at a $15 eCPM produce $0.06 ad ARPDAU. If that figure falls, check both delivery and ad prices. Adding placements addresses a different problem from a lower eCPM.

For purchases, use daily paying users divided by daily active users, multiplied by purchase revenue per daily paying user. If 2% pay and each payer spends $2 that day, purchase ARPDAU is $0.04. Check payer conversion and spend separately before changing an offer.

Choose the right comparison

ARPDAU uses daily active users. ARPPU uses paying users over the stated period. ARPU uses the user population and period defined by your report. Always show the denominator; dashboard labels alone can hide different definitions.

There is no single useful ARPDAU target for every app. Geography, ad formats, purchase mix, and audience maturity change the number. Start with your own comparable groups and require a revenue improvement that does not damage retention.

ARPDAU is not lifetime value. Multiplying today's ratio by 30 assumes the same monetization and activity continue. For an acquisition decision, use retention and revenue assumptions across a defined horizon.

Use the Monetization calculator to explore ad and purchase scenarios together. Keep a downside scenario where fewer users return. Treat the result as a model to challenge, not evidence that the forecast will happen.

Definition reference: AppsFlyer's ARPDAU glossary. Calculations and decision examples above are illustrative.