How Much Money Can You Make if You Own an App?
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January 19, 2025
Owning an app can be exciting, but the big question is: How much money can you actually make from it?
At Ptolemay, we’ve taken apps from whiteboard concepts to million-download success stories—and we know that the difference between ‘just another launch’ and a profitable mobile venture boils down to strategy. It’s not enough to build features; you have to build engagement, retention, and a monetization model that resonates with real user behavior. In this guide, our development team will walk you through the core metrics, frameworks, and insider insights that separate the 99.5% of apps that fade away from the top earners in the market.
Use our App Cost Calculator to estimate your app’s development budget and revenue potential in just 3 minutes.
Is It Still Profitable to Make an App?
Yes, it is—if you approach it the right way. While the app market is undeniably crowded, it’s still thriving. In 2024, global consumer spending on mobile apps and games climbed to $127 billion, up 15.7% from last year. That’s a clear sign people are still willing to pay for apps that solve their problems or keep them entertained.
Where does all this money come from? The biggest share—75%—comes from in-app purchases, whether it’s buying virtual goods, unlocking premium features, or upgrading experiences. Subscriptions are another key player, with revenues expected to hit $86 billion this year. Apps like fitness trackers, language tools, and streaming platforms are leading this trend.
The real trick to profitability is combining smart monetization with a focus on user retention. Apps that succeed often don’t rely on one revenue stream alone—they mix ads, subscriptions, and in-app purchases to keep the cash flow steady while giving users real value.
Discover proven strategies to monetize your educational app and turn it into a profitable venture—read our guide.
For entrepreneurs and startups, this shows the opportunity is still there. The market is growing, but succeeding means having a clear plan, understanding your audience, and building something they’ll keep coming back to. Let’s dive deeper into what it takes.
How Much Can an App Earn?
Launching an app is a journey that starts small but can grow into something significant with the right strategies. Here's what you can expect—and how to keep moving forward.
Take Flo, a women’s health app. It started small, focusing on solving specific user problems. By enhancing features based on user feedback, it grew to over 70 million monthly active users. Flo’s success shows the power of listening to your audience and continuously improving.
In the First Few Months: Start Small, Learn Fast
The early months are all about finding your footing. If you reach 500–1,000 downloads in the first month, that's a good sign you're gaining traction. At this stage, focus on two things: understanding how users interact with your app and collecting feedback to refine it. Don't expect big profits yet—these months are your testing ground.
Months 2–3: Build Momentum
As you start to understand your audience, aim for steady growth. A 20–30% increase in downloads each month is a solid goal. Use app store optimization (ASO) and simple marketing campaigns to expand your reach. If you're seeing higher engagement—users returning, completing actions, or giving positive feedback—you’re on the right track.
Months 4–6: Scaling Up
By now, you should have a clearer picture of what’s working and what isn’t. Your goal is to reach 5,000–10,000 downloads. If downloads grow but engagement drops, it’s time to revisit your user experience. On the other hand, strong retention means you’re ready to explore monetization strategies, like subscriptions or in-app purchases.
When to Adjust or Pivot
If downloads stall or users drop off, don’t panic—use it as a chance to improve. Low engagement might mean your app needs better onboarding or more valuable features. Consistent negative feedback? Treat it as a roadmap for what to fix. The key is to stay adaptable.
Table: App Size vs. Revenue Potential
Discover the Top 6 Most Expensive Apps on the App Store and what makes them worth the price.
Revenue Models: How Do App Owners Make Money?
Monetizing an app isn’t one-size-fits-all. Different strategies work for different audiences, and your choice can significantly impact your earnings. Let’s explore the most common revenue models, their strengths, and what they can bring to your app.
1. In-App Purchases
In-app purchases let users buy extras like virtual goods, upgrades, or additional content. This is the go-to model for gaming apps and works best when purchases feel optional but valuable.
Candy Crush earns millions by selling boosters and extra lives, while Clash of Clans thrives on virtual currency.
If 5% of users from 100,000 downloads spend $5, your app could make $25,000.
Offer something users genuinely want without making the free experience feel incomplete.
2. Subscriptions
Subscriptions create recurring income by charging users for premium features or exclusive content. It’s ideal for apps with ongoing value, like fitness, education, or productivity tools.
Calm charges a monthly fee for guided meditations, while Duolingo offers ad-free learning and extra perks for premium subscribers.
With a $10/month subscription and 10% of 100,000 downloads subscribing, your app could bring in $100,000 per month. This model is sustainable if users see consistent value.
3. Ads
Ads are the simplest way to monetize free apps. Revenue depends on impressions, clicks, or installs, making it a great choice for apps with high user engagement.
Games like Flappy Bird monetized entirely through ads, earning thousands daily during their peak popularity.
If your app has 100,000 monthly active users and an average $5 CPM (cost per 1,000 impressions), you could earn around $2,500/month. Ads are low-effort but work best with large, active audiences.
4. Freemium
The freemium model gives users basic features for free, with optional upgrades for a price. It’s perfect for apps aiming to hook a broad audience while earning from the most engaged users.
Evernote offers free note-taking but charges for premium features like offline access and extra storage.
If 5% of 50,000 users upgrade to a $10/month premium plan, you’re looking at $25,000/month. The trick is balancing free value with enticing premium perks.
5. One-Time Purchases
Some apps charge an upfront fee, appealing to users who prefer simplicity and avoiding ongoing costs. This works well for niche apps with unique value.
Procreate, a professional drawing app, charges a one-time fee, targeting artists willing to pay for quality tools.
An app priced at $5 with 10,000 downloads could earn $50,000. While this model provides immediate income, it requires steady download growth to stay profitable.
What Makes an App Profitable?
Making an app profitable starts with more than just downloads—it’s about knowing your audience, keeping them hooked, and choosing the revenue model that fits your app best.
1. Top-Grossing Categories: Where the Money Is
Certain app categories consistently outperform others because they align with core human behaviors and needs. These needs—entertainment, self-improvement, connection, and productivity—drive users to spend money willingly. Let’s explore these categories, why they succeed, and how they tap into human psychology.
1. Gaming: Instant Rewards and Escapism
Gaming apps thrive because they cater to people’s desire for fun, competition, and instant gratification. Players feel rewarded through achievements, levels, and virtual goods, which trigger dopamine releases. This makes in-app purchases for boosts, power-ups, or customizations almost irresistible.
Candy Crush and Clash of Clans generate billions through in-app purchases and ads, proving that users value the entertainment and progress these games offer.
Games often create a sense of urgency with limited-time offers or rewards, encouraging users to spend impulsively.
2. Fitness and Health: Aspiration and Accountability
Fitness and health apps appeal to people’s deep-seated desire for self-improvement. Whether it’s losing weight, building strength, or reducing stress, these apps provide tools to help users achieve their goals. Subscriptions create a sense of commitment, and guided content offers structure and accountability.
MyFitnessPal and Calm monetize through recurring subscriptions, as users see ongoing value in calorie tracking, guided meditations, or personalized plans.
People are willing to pay for apps that promise measurable progress or life-changing results, especially when convenience is combined with expertise.
3. Productivity: Efficiency and Achievement
Productivity apps cater to our need for organization and accomplishment. Whether managing tasks, taking notes, or collaborating with a team, these tools reduce chaos and improve efficiency. Freemium models work well here because users can try the basics for free before upgrading to advanced features.
Notion and Evernote monetize by offering premium plans with features like team collaboration, offline access, and expanded storage.
Users value apps that save time or simplify complex tasks, especially in professional and academic contexts.
4. Entertainment and Streaming: Escapism and Social Connection
Entertainment apps provide an escape from daily stress and a way to connect with shared experiences. Streaming platforms offer endless content, while social media apps satisfy the need for interaction, creativity, and status.
Netflix and Disney+ generate revenue through subscriptions, while TikTok uses ads and in-app purchases for content creators to monetize.
Entertainment apps tap into people’s need to relax, bond, and explore their creative side, making them willing to pay for convenience and exclusivity.
5. Education and E-Learning: Growth and Knowledge
Education apps tap into the intrinsic motivation to learn and grow. They offer structured content, progress tracking, and certifications, making users feel accomplished. Subscriptions and one-time purchases are common here.
Duolingo offers free language learning with premium ad-free plans, while Coursera charges for professional certifications.
Users invest in these apps because they see them as stepping stones to career growth or personal fulfillment.
6. Social Media: Connection and Recognition
Social media apps fulfill the basic human need for connection and validation. Features like likes, comments, and followers trigger dopamine, keeping users engaged. Monetization comes from ads and in-app purchases, such as virtual gifts for content creators.
Instagram, Snapchat, and TikTok thrive on engagement, which drives ad impressions and sponsored content opportunities.
Social media apps succeed because they make users feel seen, valued, and part of a community.
7. Shopping and E-Commerce: Convenience and Gratification
Shopping apps satisfy the desire for instant gratification. They simplify the purchasing process, offer personalized recommendations, and use limited-time discounts to create urgency.
Amazon and Shopify generate massive revenues through in-app purchases, while apps like Etsy cater to niche markets with unique products.
Users are drawn to apps that make their lives easier, provide value, and offer unique finds.
2. Retention and Engagement: The Revenue Multiplier
Downloads are great, but they mean little if users don’t stick around. Retention and engagement drive revenue, whether it’s through ads, subscriptions, or purchases.
- Retention Metrics: Day 1 retention (users who return the day after installing) averages around 25%. By Day 30, this often drops below 5%. Apps with higher retention outperform because they generate more opportunities for revenue.
- Engagement Strategies: Apps like Duolingo and Clash of Clans thrive by keeping users active with rewards, challenges, and regular updates. Push notifications, gamification, and personalization keep users coming back.
Engaged users click on more ads, spend more on in-app purchases, and are likelier to subscribe. Retention is the foundation of consistent app revenue.
Learn the difference between Vanity Metrics and Real Metrics to avoid common app creation pitfalls.
3. Scaling Downloads: Growing Your User Base
The more users you have, the greater your earning potential—but scaling isn’t just about numbers. It’s about finding quality users who engage and spend.
- Marketing and ASO: Use App Store Optimization (ASO) to improve your app’s visibility and target the right audience. Pair this with targeted ad campaigns to attract users likely to stay and spend.
- Impact of Scale: More downloads mean more ad impressions, higher conversion rates for in-app purchases, and a larger subscriber base. For example, a fitness app charging $10/month could earn $10,000 monthly with 1,000 subscribers, but scaling to 10,000 subscribers increases that to $100,000.
A casual game with 100,000 downloads might generate $10,000/month from ads and in-app purchases. A fitness app with the same downloads and 5% converting to a $10 subscription could earn $50,000/month.
Challenges in the App Market
The app market is competitive, costly, and unforgiving. To succeed, you need to understand the key challenges and prepare for them.
Why Do Most Apps Fail?
A staggering 99.5% of apps fail to make a meaningful impact. The reasons are usually avoidable:
- Ignoring the Market: Many apps solve problems no one has or enter spaces that are already oversaturated.
- Bad First Impressions: Users won’t wait for you to fix a slow or buggy app. They’ll uninstall it after one bad experience.
- No Clear Revenue Plan: Without a way to generate money, even promising apps run out of fuel.
How to Avoid It:
- Research your audience before you write a single line of code. What do they need, and what are they willing to pay for?
- Deliver a polished, intuitive experience from the start—first impressions are everything.
- Pick a revenue model that fits your app and audience, whether that’s subscriptions, ads, or in-app purchases.
Standing Out in a Sea of Apps
There are millions of apps on the market, and users only have so much attention to give. The challenge isn’t just getting downloads—it’s staying relevant.
How to Compete:
- Be Specific: Broad solutions rarely work. For example, instead of launching another meditation app, focus on something unique, like mindfulness for teens or burnout recovery for professionals.
- Market Like a Pro: Use App Store Optimization (ASO) to ensure your app gets found. Great visuals and clear messaging help, too.
- Keep Evolving: Apps that stay static lose users. Regular updates with new features or improvements show you’re invested in the user experience.
How Much Does It Cost to Develop an App?
The price of creating and maintaining an app often surprises first-time developers:
- Simple apps can cost $40,000–$120,000 to develop.
- More complex projects start at $200,000 and climb higher.
- Ongoing maintenance—bug fixes, updates, and new features—adds 15–20% of the development cost annually.
Start your app journey with clarity! Use our App Cost Calculator to get:
✅ A detailed budget breakdown
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✅ The optimal tech stack
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✅ Compliance insights (e.g., GDPR, HIPAA)
Take the guesswork out of app development—plan smarter today!
What Are the Odds of Success?
Making a successful app might sound tough, but it’s not impossible if you understand the market and make smart decisions. It’s all about spotting opportunities, keeping your costs in check, and delivering something people genuinely need.
Right now, apps that use AI or augmented reality are making waves. Look at ChatGPT for personalized communication or IKEA Place for visualizing furniture in your home. These apps stand out because they solve real problems in ways that feel fresh and useful. If your app idea taps into trends like these, you’re already giving yourself an edge.
But you don’t always need cutting-edge tech or a huge budget to succeed. Apps like WhatsApp started small, focusing on doing one thing really well: messaging. And then there’s Flappy Bird, built by a single developer, which earned $50,000 a day at its peak just through ads. These apps worked because they understood their audience and kept things simple.
Profitability also comes down to how you manage your costs. Apps with subscriptions, like productivity tools or fitness trackers, tend to have high profit margins—sometimes as much as 90%—because they don’t require constant spending to bring in users. On the other hand, ad-based games or apps that rely on in-app purchases often see tighter margins, around 70%, due to high marketing and hosting expenses.
The key is to focus on what matters: solving a clear problem, keeping your idea simple, and staying on top of trends that can make your app stand out. Big budgets aren’t everything—a lean approach with the right strategy can take you much further than you might think.
Frequently Asked Questions About App Revenue and Profitability
How much does an app with 100k downloads make?
An app with 100k downloads can earn between $5,000 and $20,000 per month, depending on its monetization strategy. For example, ad-supported apps might make $0.60–$1.20 per user, while subscription apps can earn significantly more if just 5–10% of users subscribe.
What percentage of apps fail?
Around 99.5% of apps fail, often due to poor market research, lack of user retention, or unclear monetization strategies. To succeed, focus on a unique value proposition, seamless UX, and solid marketing.
How much can a 1 million downloads app make?
An app with 1 million downloads can generate $100,000+ per month, depending on engagement and monetization. For example, a gaming app with in-app purchases may earn $1 per active user, while a subscription-based app charging $10/month can earn millions annually.
What is the average income of an app?
The average income of an app varies widely. Most apps earn less than $500/month, but successful apps in high-demand categories like gaming or fitness can generate $10,000–$50,000+ per month with effective monetization.
How much money can I make if I build an app?
Your earnings depend on downloads, user engagement, and your revenue model. For example:
- Ads: $5–$15 per 1,000 impressions.
- Subscriptions: $10–$30 per active user monthly.
- In-App Purchases: $1–$10 per paying user.With a well-executed strategy, you can scale to $10,000+ per month.
Do you get paid for owning an app?
Yes, you earn from owning an app by implementing revenue models like ads, subscriptions, or in-app purchases. The amount depends on how well you monetize and retain your users. Apps with steady engagement generate passive income over time.
Conclusion: Start Building Your App With Confidence
Creating a successful app starts with more than an idea—it requires a clear plan, smart strategies, and understanding the costs involved. We’ve explored everything from potential earnings and market trends to overcoming challenges and choosing the right revenue model. Now, it’s time to take action.
The first step in your app journey is knowing what it will take to build. Our App Cost Calculator makes it easy to plan every detail of your app project.
Meet Our Expert Flutter Development Team
Our full-cycle Flutter development team at Ptolemay specializes in building high-quality, cross-platform apps from start to finish. With expert skills in Dart, backend integrations, and seamless UX across iOS and Android, we handle everything to make your app launch smooth and efficient.
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