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App and game studio · 14 min

How an app makes money

Most apps are free to download. So who pays? A few players, advertisers or subscribers, and the app store keeps a share of every purchase before any of it reaches you.

Your business

Pick the business you'll run

Each lesson uses your pick for its numbers. You can change it any time.

What kind of app

Paid app or game

Stardew Valley, a farming game, costs $4.99apple.com ·2026 on the US App Store, with nothing to buy inside.

Free game with in-app purchases

On an average day in 2025, 4.4%sec.gov ·2025 of the players of Playtika's mobile games bought something.

Free app paid for by ads

Snap, the company behind Snapchat, which makes its money mainly from ads, took in about $0.039sec.gov ·2025 a day per daily user at the end of 2025.

Pick a business to start.

Spot something wrong?

Tell us what looks off. No name or email needed.

What kind of problem?

0 / 1000

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Sources and every number (13)

Sources

  • Playtika Holding Corp. Form 10-K for the fiscal year ended December 31, 2025 (key metrics: daily active users, daily paying users, payer conversion, revenue per daily active user) · Playtika Holding Corp. (filed with the U.S. SEC), 2025
  • Snap Inc. Form 10-K for the fiscal year ended December 31, 2025 (average revenue per daily active user, fourth quarter) · Snap Inc. (filed with the U.S. SEC), 2025
  • Duolingo, Inc. Form 10-K for the fiscal year ended December 31, 2025 · Duolingo, Inc. (filed with the U.S. SEC), 2025
  • Apple announces App Store Small Business Program (the standard 30 percent commission stays in place) · Apple Newsroom, 2020
  • Auto-renewable subscriptions: what you receive in a subscriber's first year and after a year of paid service · Apple Developer, 2026
  • App Store Small Business Program · Apple Developer, 2026
  • Understanding Google Play's lower service fees (recurring transactions in the US from June 30, 2026; billing fee) · Google Play Console Help, 2026
  • Stardew Valley on the US App Store (price and in-app purchases, at the time of writing) · Apple App Store, 2026
  • Apple Developer Program: what's included (membership fee) · Apple Developer, 2026
  • Play Console Help: get started with Play Console (registration fee) · Google Play Console Help, 2026
  • App Store Connect Help: overview of receiving payments · Apple Developer, 2026
  • Occupational Outlook Handbook: Software Developers, Quality Assurance Analysts, and Testers (pay: median wage, May 2025) · U.S. Bureau of Labor Statistics, 2025
  • Play Console Help: app testing requirements for new personal developer accounts · Google Play Console Help, 2026

Every number

  • 4.4%sec.gov ·2025 · Playtika's average daily payer conversion, 2025: players who paid on a day as a share of that day's players. Its games are mostly casino-style and casual games.
  • $0.89sec.gov ·2025 · Playtika's average revenue per daily active user, 2025: its revenue divided by the days in the year and by its average daily players.
  • 8.5 million playerssec.gov ·2025 · Playtika's average daily active users, 2025.
  • $3.62sec.gov ·2025 · Snap's average revenue per daily active user in the last three months of 2025: a quarter's revenue divided by its average daily users. Mostly ads; it also sells Snapchat+ subscriptions.
  • $0.039sec.gov ·2025 · Worked out: Snap's revenue per daily user in the last three months of 2025, divided by the ninety-two days of the quarter.
  • 84.2%sec.gov ·2025 · Worked out from Duolingo's 2025 annual report: subscription revenue as a share of all its revenue. The rest was mainly ads, its English test and in-app purchases.
  • 30%apple.com ·2020 · Apple's standard App Store commission on digital goods and services, which Apple said stays in place when it started the Small Business Program in 2020.
  • 70%apple.com ·2026 · What a developer receives of a subscription's price in a subscriber's first year at Apple's standard rate, before taxes, at the time of writing (checked November 2026).
  • 15%apple.com ·2026 · Apple's commission on paid apps and in-app purchases for developers in its Small Business Program, at the time of writing (checked November 2026).
  • $0.85apple.com ·2026 · Worked out: what's left of a dollar a player spends after the store's share for a small developer.
  • $1Mgoogle.com ·2026 · The yearly earnings up to which Google Play's lowest US service fee applies to a developer.
  • $1Mapple.com ·2026 · The most a developer can earn in a year, after Apple's commission, and stay in Apple's Small Business Program.
  • 10%google.com ·2026 · Google Play's US service fee on a developer's first million dollars of earnings a year, from the end of June 2026, at the time of writing (checked November 2026).
  • 5%google.com ·2026 · Google Play's US billing fee on purchases through Google Play's billing, at the time of writing (checked November 2026).
  • 15%google.com ·2026 · Worked out: Google Play's US service fee on a developer's first million dollars a year, plus its billing fee.
  • 20–25%google.com ·2026 · Google Play's US service fee on paid apps and one-time purchases above a developer's first million dollars a year, before the billing fee: lower for new installs, higher for existing ones, at the time of writing (checked November 2026).
  • 3–4%sec.gov ·2025 · Payment fees on purchases through Playtika's own direct-to-consumer stores, as its 2025 annual report says they typically run.
  • 29.6%sec.gov ·2025 · Worked out from Playtika's 2025 annual report: revenue through its own direct-to-consumer stores as a share of all its revenue.
  • $4.99apple.com ·2026 · Stardew Valley's price on the US App Store, with no in-app purchases, at the time of writing (checked November 2026).
  • $0.75example (example number: Worked out from the examples: the store's share of the price, rounded to the cent.) · Worked out from the examples: the store's share of the price, rounded to the cent.
  • $4.24example (example number: Worked out from the examples: the price less the store's share, rounded to the cent.) · Worked out from the examples: the price less the store's share, rounded to the cent.
  • $9.99example (example number: Simplified example: a bag of coins in a free game.) · Simplified example: a bag of coins in a free game.
  • $1.50example (example number: Worked out from the examples: the store's share of the coin pack, rounded to the cent.) · Worked out from the examples: the store's share of the coin pack, rounded to the cent.
  • $8.49example (example number: Worked out from the examples: the coin pack's price less the store's share, rounded to the cent.) · Worked out from the examples: the coin pack's price less the store's share, rounded to the cent.
  • 2 ad viewsexample (example number: Simplified example: ads one player sees a day.) · Simplified example: ads one player sees a day.
  • 30 daysexample (example number: Simplified example: a month of playing every day.) · Simplified example: a month of playing every day.
  • $10example (example number: Simplified example: what a small app is paid for every thousand ad views, after the ad network keeps its share. Real rates change with the country, the kind of ad and the season.) · Simplified example: what a small app is paid for every thousand ad views, after the ad network keeps its share. Real rates change with the country, the kind of ad and the season.
  • 60 ad viewsexample (example number: Worked out from the examples: two ad views a day for thirty days.) · Worked out from the examples: two ad views a day for thirty days.
  • $0.60example (example number: Worked out from the examples: sixty ad views at ten dollars for every thousand.) · Worked out from the examples: sixty ad views at ten dollars for every thousand.
  • $3,000/monthexample (example number: Simplified example: your own rent, food and bills while you build, with no pay coming in.) · Simplified example: your own rent, food and bills while you build, with no pay coming in.
  • 6 monthsexample (example number: Simplified example: how long you build before launch.) · Simplified example: how long you build before launch.
  • $18,000example (example number: Worked out from the examples: six months of living costs at three thousand dollars.) · Worked out from the examples: six months of living costs at three thousand dollars.
  • $99/yearapple.com ·2026 · The Apple Developer Program's membership fee, at the time of writing (checked November 2026).
  • $25google.com ·2026 · Google Play's one-time registration fee for a developer account, at the time of writing (checked November 2026).
  • $4,241.50example (example number: Worked out from the examples: a thousand sales at the game's price, less the store's share.) · Worked out from the examples: a thousand sales at the game's price, less the store's share.
  • $5,100example (example number: Worked out from the examples: twenty thousand players, two in a hundred buying fifteen dollars' worth, less the store's share.) · Worked out from the examples: twenty thousand players, two in a hundred buying fifteen dollars' worth, less the store's share.
  • $5,000example (example number: Worked out from the examples: twenty thousand players seeing twenty-five ads each, at ten dollars for every thousand views.) · Worked out from the examples: twenty thousand players seeing twenty-five ads each, at ten dollars for every thousand views.
  • $18,124example (example number: Worked out from the examples: your living costs plus Apple's and Google's fees.) · Worked out from the examples: your living costs plus Apple's and Google's fees.
  • 45 daysapple.com ·2026 · Apple pays developers within this many days of the last day of the Apple fiscal month in which the sale was completed.
  • $135,980/yearbls.gov ·2025 · Median yearly pay for software developers, all industries, May 2025.
  • 12 testersgoogle.com ·2026 · The fewest testers a closed test needs before a new personal Google Play account can apply to publish.
  • 14 daysgoogle.com ·2026 · How long those testers must stay in the closed test without a break.
  • 20,000 playersexample (example number: Simplified example: players who open a free app at least once this month.) · Simplified example: players who open a free app at least once this month.
  • $6,000/monthexample (example number: Simplified example: a small studio's month: your own pay, a part-time artist, servers and tools.) · Simplified example: a small studio's month: your own pay, a part-time artist, servers and tools.
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