Question 1

How much revenue do mobile apps make?

Accepted Answer

Median mobile app revenue is very low — 50% of apps make less than $1,000 lifetime. However, top-performing apps generate millions monthly. Benchmarks: casual games with 100K MAU + ads: $2,000-10,000/month. Subscription apps with 1-5% conversion: $5,000-50,000/month at 50K downloads. Health/productivity apps convert at higher rates (5-10%) due to strong pain point. App Store and Google Play take 30% (15% for first $1M).

Question 2

What's a realistic free-to-paid conversion rate?

Accepted Answer

Industry benchmarks for freemium apps: Games: 0.5-2.5% convert to paid. Productivity tools: 2-5%. Health/fitness: 5-10%. Education: 3-8%. Dating apps: 5-15%. Premium-only apps (no free tier) see different metrics. For subscription apps, focus on activation rate first — users who complete the core action in first session are 3-4x more likely to subscribe within 7 days.

Question 3

Apple App Store fee: 15% vs 30%?

Accepted Answer

Apple's small business program applies to developers earning less than $1M/year on the App Store — they pay 15% instead of 30%. Once you exceed $1M in the calendar year, fees revert to 30%. Google Play has a similar tiered structure: 15% on first $1M, 30% above that. For subscriptions: Apple charges 30% in year 1, 15% in year 2+ for retained subscribers. This significantly improves LTV math for subscription apps.

Question 4

Subscription vs in-app purchases vs ads — which monetizes best?

Accepted Answer

By app type: Games: IAP (cosmetics, power-ups) generates 4-6x more than subscription equivalents. Productivity/Utility: Subscription LTV exceeds IAP for high-engagement apps. Consumer social/entertainment: Ads + optional premium tier (freemium) balances reach and revenue. B2B mobile tools: Subscription-only, no ads. Apps with $1M+ revenue almost always lead with subscription — predictable revenue, higher LTV, better investor metrics.

Mobile App Revenue Calculator — IAP, Subscriptions & Ad Revenue

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