How Much Money Can an Android Developer Earn From a Free App on the Google Play Store?

A free app, that means there are ads in it right?

without ads, a free app wont earn a penny!

So here's the math for How much you can earn through AdMob!

  • 1,000 Active users a day = 2$
  • 10,000 Active users a day = 20$
  • 100,000 Active users a day = 200$
  • 1000,000 Active users a day = 2000$

*This is an approx earning report, it was my experience*

Its about how many active users your app has, more than your downloads.

How much money can an Android developer earn from a free app on the Google Play store?

Depends. For free apps, you'd be using advertising as your source of revenue.

It depends on the user base(active users, not downloads), the amount of time users spend in your app per day, the relevance of advertisements to your target user base, the demographic of your user base(clicks from US, UK and other developed countries generate more revenue than clicks from countries like India), the types of ads(interstitials, banners etc; they all have different CPC), the revenue model that your ad network uses(CPC, CPM, CPI etc*).

It all boils down to eCPM*.

You could earn millions(Angry Birds) to almost nothing.
About 10-50$ per month is very easy to achieve.

  • *CPC - cost(revenue) per click
  • CPI - cost per install
  • CPM - cost per thousand impressions ( of ad)
  • eCPM - estimated CPM (for a CPI and CPC model). It is a function of CPI/CPC and the past ratio of clicks to impressions.
  • CPC allocated to your ad placements is in turn a function of CTR(click through rate) for many ad networks.

You should research these parameters and the various ad networks in greater detail if you plan to use advertising as your revenue source.

3rd Answer on How much money can an Android developer earn from a free app on the Google Play store?

How to earn money from a free android app ?

Answer is advertisements. Almost every free app that we use have advertisements.

How much ?

Revenue from advertisements is depended on a lot of factors. Some of which are

a) Location of the app users

b) The category of the app

c) Time of the year. Yes , this is an important factor.

The calculation

Developers usually earns between $0.50 - $5 for every 1000 views that an ad gets. Ads are usually rotated every 30 seconds. Which means if a user spends 10 minutes in an app which has ad in it , the developer earns something between $0.01 to $0.10. So if the app has 1000 new downloads everyday and every user spends 10 minutes on the app on average , the developer earns $10 to $100 . Also if the app is decent then the returning users will be more, suppose there are 2000 returning users everyday ( in theory, number of returning users will increase by time ). Thus the developer earns $20 - $160 from returning users everyday.Thus we can safely assume that a free android app with 1000 downloads per day can generate a revenue of $20 - $200 everyday.

The country wise RPM ( revenue per 1000 views ) which am getting for past 1 year.

Revenue per 1000 views vs day of month


An example for country wise RPM

This is from my own experience with Google adsense. This definitely will vary for other developers.

4th Answer on How much money can an Android developer earn from a free app on the Google Play store?

An android app developer has many ways to earn money from a free app on the Google Play Store. App monetization can be done in many ways. Users expect that their apps are free and are not willing to pay for the apps. So, what developers do is give them free version of app and ask for something to download the extra features. For example, in case of games. It happens a lot. Gamer gets addict to a particular game and want to unlock the next level but to do that, they have to pay and they do, happily so. This is evident from the famous game Candy Crush where user pay for an extra life.

Another way of earning money from mobile app is advertisements. Build user engaging mobile apps. If your app has considerable number of visitors, then add agencies will approach you or you can approach them yourself. Every time a user click on their ads, you get paid.

Another approach is based if you have a business model and you are providing some sort of service from your app. Like a payment portal like Paytm or PayPal. Or your app can be a medium to make purchases for your restaurant business or retail business. Avoid mistakes in mobile app development. I have seen developers earning up to 100$ a month via advertisements. You have to keep this in mind that ads have a season. Like during Christmas holidays or any other holiday, you will notice a sharp rise in ads. There are off seasons as well. If you are not a mobile app developer and have a great idea, then you can hire one.

Note:- Article on How much money can an Android developer earn from a free app on the Google Play store? is Only Meant to Provide Information.

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