How Do Apps Make Money? Models, Numbers and Fees (2026)
Superapp's guide to app revenue in 2026: the seven ways apps make money, seven real founder stories in their own words, what a typical app really earns, what Apple and Google keep, and how to pick a model before you build.
How Do Apps Make Money: The Short Answer
Superapp, an AI app builder for native iPhone apps, groups app revenue into seven models: subscriptions, in-app purchases, paid downloads, in-app ads, selling physical goods or services, sponsorships and affiliate deals, and freemium mixes of these. Free apps mostly earn from ads, in-app purchases and subscriptions, or by selling something outside the app. The money is real but concentrated: the median subscription app makes about $72 a month a year after launch.
Quick answer: how do apps make money? Superapp's short version: apps earn by charging users (subscriptions, in-app purchases, paid downloads), by showing ads, or by selling goods and services the app gives access to. Consumers spent $167 billion on in-app purchases in 2025, and for the first time non-game apps earned more than games (Sensor Tower). On Apple's App Store, developers paid no commission on more than 90% of $1.4 trillion in 2025 billings and sales, because most of it was physical goods, services and ads (Apple). For digital purchases, Apple and Google keep 15% to 30%. The typical app earns little: RevenueCat's median is about $72 a month one year after launch, while the top 10% earn over $2,574.
How do free apps make money?
Free apps make money by charging some users for more, by selling attention to advertisers, or by selling something the app only provides access to, like a ride, a meal or a product.
Apple's 2025 numbers show how lopsided this is. Of the more than $1.4 trillion in billings and sales its App Store ecosystem facilitated, $1.1 trillion was physical goods and services, $151 billion was in-app advertising and $149 billion was digital goods and services (Apple). Developers paid Apple no commission on more than 90% of that total.
So a "free" ride-hailing, food delivery or shopping app makes its money from the service, not the App Store. A free game or utility usually makes it from ads and optional purchases.
What are the 7 ways apps make money?
Most successful apps combine two or three of these models.
| Model | How it works | Store fee on the revenue | Typical apps |
|---|---|---|---|
| Subscriptions, for example in a Superapp-built iPhone app through its RevenueCat integration | Users pay weekly, monthly or yearly for ongoing access | 15% to 30% on Apple; lower after a subscriber's first year | Fitness, productivity, AI, dating, streaming |
| In-app purchases | One-time buys inside the app: coins, lives, unlocks, credits | 15% to 30% | Games, AI credit packs, photo filters |
| Paid download | Users pay once before installing | 15% to 30% | Niche pro tools, some games |
| In-app ads | Banners, interstitials, rewarded video shown to free users | None from the store; the ad network keeps its share | Casual games, free utilities, news |
| Physical goods and services | The app sells something used outside it | None from Apple | Delivery, rides, retail, booking |
| Sponsorships and affiliate | Brands pay for placement, or the app earns commission on referrals | None from the store | Content, deals, travel |
| Freemium hybrid | A free tier funded by ads, upgrades or both | Depends on the mix | Most top-grossing apps |
For details on the subscription side, see best iPhone paywall tools and RevenueCat vs StoreKit.
How much money do apps actually make?
Most apps make very little, and a few make most of the money. RevenueCat's 2026 report, covering more than 115,000 subscription apps and over $16 billion in revenue, gives the clearest picture (RevenueCat):
- The median app earns about $72 a month one year after launch.
- The top 10% earn more than $2,574 a month at the same point.
- Within their first two years, 17.3% of new apps reach $1,000 in monthly revenue and 4.6% reach $10,000.
- Apps that hit $1,000 a month take a median of 58 days to get there.
- The top quarter of apps grew 80% year over year, while the bottom quarter shrank 33%.
The honest takeaway: an app is a business with a wide spread of outcomes, not a passive income stream. Distribution decides most of the result.
Which apps make the most money?
Subscription-driven non-game apps now lead. Sensor Tower reports that global in-app purchase revenue reached $167 billion in 2025, up 10%, and that non-game apps overtook games for the first time, growing 21% (Sensor Tower). TikTok, Google One and ChatGPT were the three highest-grossing apps of 2025.
The categories that earn most from users are video and social, cloud storage, AI assistants, dating and games. Shopping, delivery and travel apps earn far more in total, but through the goods and services they sell rather than in-app purchases.
How much do Apple and Google take?
The store fee applies only to digital goods and services sold inside the app. Ads, physical goods and real-world services pay no store commission.
| Situation | Fee | Source |
|---|---|---|
| Superapp-built iPhone app enrolled in Apple's Small Business Program (under $1M a year) | 15% on paid apps and in-app purchases | Apple |
| Apple standard rate | 30% | Apple |
| Apple subscriptions after a subscriber's first year | You keep 85%, so 15% | Apple |
| US apps linking to a web checkout | No Apple commission for now; a court is setting a permissible rate | MacDailyNews |
| Google Play, most markets | 15% on the first $1M a year, 30% above; 15% on subscriptions | |
| Google Play, US, UK and EEA from June 30, 2026 | Subscriptions 10% plus a 5% billing fee |
The Small Business Program is not automatic; you have to enroll. For the full fee picture, including the $99 developer account, see App Store publishing cost and the Small Business Program guide.
Which monetization model should your app use?
Match the model to how often people need the app and what they get each time.
| Your app | Start with | Why |
|---|---|---|
| A habit, fitness or productivity iPhone app built with Superapp | Subscription with a free trial | Ongoing value earns ongoing payment |
| Casual game | Ads plus in-app purchases | Most players never pay; ads earn from them |
| Utility used occasionally | One-time unlock or paid download | Users resist subscriptions for rare tasks |
| AI app with real per-use costs | Subscription plus credit packs | Heavy users pay for what they consume |
| Marketplace, booking or delivery | Fees on the transaction | Real-world services carry no Apple commission |
| Content or community | Subscription, then sponsorships | Loyal audiences pay; brands pay for reach |
What subscription numbers should you plan with?
RevenueCat's 2026 benchmarks are the best public starting point for a subscription plan (RevenueCat):
- Hard paywalls, which ask for payment upfront, convert 10.7% of users by day 35, against 2.1% for freemium. Year-one retention is nearly identical.
- Median trial-to-paid conversion rises with trial length: 25.5% for trials of 4 days or less, 37.4% for 5 to 9 days, 42.5% for 17 to 32 days.
- A median of 7.1% of downloads start a trial in North America, and 5.0% in Western Europe.
- Monthly prices cluster at $9.99 in most categories; the median yearly price rose from $31.60 to $34.80.
- 55% of 3-day trial cancellations happen on the first day.
A worked example: what 10,000 downloads could earn
This is illustrative arithmetic using the RevenueCat medians above, not a forecast.
- 10,000 US downloads at a 7.1% download-to-trial rate gives about 710 trials.
- A 7-day trial converting at 37.4% gives about 266 paying subscribers.
- At $9.99 a month, minus Apple's 15% Small Business Program fee, each pays you about $8.49.
- That is roughly $2,258 in monthly revenue from that cohort, before churn and before what you spent to get the downloads.
The same 10,000 downloads on a freemium model at 2.1% conversion would give about 210 payers. The gap is why pricing and paywall design matter as much as the idea.
Building and growing an app that pays
As a disclosure, Superapp is our product, so weigh this accordingly. Superapp builds native iPhone apps from a plain-English description, and its built-in RevenueCat integration helps set up subscriptions; you still configure products and subscription groups in App Store Connect. Its Selfdrive agents then work on getting users through App Store optimization, Apple Ads, a website with SEO, and UGC creators. Two honest limits: it builds for Apple platforms only, and its documentation covers subscriptions rather than ad networks, so an ad-funded Android game is the wrong fit. Alternatives include no-code builders like Adalo or FlutterFlow, or hiring developers. For idea starting points, see 50 app ideas you can build without coding.
Common app monetization mistakes
- Picking ads for an app with a small, loyal audience; ad revenue needs scale.
- Launching without a paywall and planning to "add monetization later."
- Using a long free tier when a short trial would convert better.
- Forgetting the store fee and payment processing when pricing.
- Not enrolling in the Small Business Program and paying 30% instead of 15%.
- Spending on ads before the app converts installs into payers.
Frequently Asked Questions
How do free apps make money?
Through ads, in-app purchases, subscriptions for premium features, or by selling goods and services outside the app. Apple says developers paid no commission on more than 90% of the $1.4 trillion its App Store ecosystem facilitated in 2025, mostly physical goods, services and ads.
How do apps make money from ads?
The app shows ads from an ad network, and the network pays the developer for impressions, clicks or completed views. App stores take no commission on ad revenue.
How much money does the average app make?
Most apps make little. RevenueCat's 2026 data shows the median subscription app earns about $72 a month one year after launch, while the top 10% earn more than $2,574.
What percentage of apps make money?
RevenueCat found that 17.3% of new subscription apps reach $1,000 in monthly revenue within two years, and 4.6% reach $10,000.
How much does Apple take from app sales?
The standard rate is 30%. Developers under $1 million a year can enroll in the Small Business Program for 15%, and subscription revenue after a subscriber's first year is also charged 15%.
How much does Google take from app sales?
In most markets, 15% on the first $1 million a year and 30% above, with 15% on subscriptions. In the US, UK and EEA, subscriptions moved to 10% plus a 5% billing fee from June 30, 2026.
Which type of app makes the most money?
Non-game apps overtook games in in-app purchase revenue in 2025, led by apps like TikTok, Google One and ChatGPT. Subscription apps in video, storage, AI, dating and productivity earn the most from users.
Is a subscription or one-time purchase better?
Subscriptions suit apps people use regularly; one-time purchases suit occasional tools. RevenueCat found hard paywalls convert 10.7% of users by day 35, against 2.1% for freemium.
How long does it take an app to make money?
For subscription apps that reach $1,000 a month, the median time is 58 days, according to RevenueCat. Most apps never reach that level.
Can I make money from an app without coding?
Yes. AI and no-code builders like Superapp, Adalo or FlutterFlow let you build and sell an app, but earnings still depend on picking a model and getting users.
Do apps pay Apple a fee on physical goods?
No. Apple's commission applies to digital goods and services sold in the app. Physical goods, real-world services and ad revenue carry no Apple commission.
What is the best monetization model for a new app?
For most new apps with recurring use, a subscription with a short free trial. For casual games, ads plus in-app purchases. For occasional tools, a one-time unlock.
References
- Sensor Tower: Consumers spent more in apps than games for the first time (Jan 2026)
- Apple Newsroom: App Store ecosystem reaches $1.4 trillion (June 2026)
- RevenueCat: State of Subscription Apps 2026
- Apple: App Store Small Business Program
- Apple: Auto-renewable subscriptions
- Apple Developer News: commission rate update
- Google Play Console Help: Service fees
- MacDailyNews: App Store commission rate proceedings (Aug 2026)
- Superapp: App Store publishing cost
- Superapp: Small Business Program guide
- Superapp: Best iPhone paywall tools
- Superapp: RevenueCat vs StoreKit
- Superapp: 50 app ideas for 2026
- Superapp and Selfdrive