App development can generate revenue through subscriptions, in-app purchases, paid downloads, advertising, or by using an app to sell other products and services. Revenue varies substantially by business model; available subscription-app data shows particularly concentrated outcomes between typical apps and top performers.

Quick Facts

Earnings

RevenueCat's 2026 subscription-app report covers more than 115,000 apps representing over US$16B in revenue. Among newly launched subscription apps, revenue outcomes were heavily skewed.

Only 17.3% of newly launched apps in the dataset reached US$1,000 in monthly revenue within their first two years, while 4.6% reached US$10,000.

These figures cover subscription apps using RevenueCat, not all mobile apps. They should not be interpreted as typical earnings for games, advertising-supported apps, paid apps, client development, or every other form of app development.

Revenue also differs substantially by category. One year after launch, RevenueCat reported median monthly revenue of US$124 for Photo & Video apps compared with US$35 for Travel apps.

Minimum Entry Setup

Software development can begin with free development tools when a developer already owns compatible hardware. Store distribution introduces platform-specific costs.

Apple allows developers with a free developer account to use Xcode and test apps on their own devices. Distribution through the App Store requires the US$99 annual Apple Developer Program membership.

A developer who already owns compatible hardware can therefore build and test an app without purchasing dedicated development software or immediately paying for App Store distribution.

How It Makes Money

RevenueCat's 2026 dataset shows common subscription pricing around US$5.99 weekly, US$10 monthly and US$34.80 yearly, although pricing differs substantially by category and geography.

Apps can also generate revenue outside the app stores by supporting commerce, bookings, professional services, physical products or SaaS businesses.

Costs

For an independent developer using existing hardware, distribution accounts and platform fees can be among the first direct costs.

Apple App Store

The Apple Developer Program costs US$99 per membership year.

Apple's standard commission on digital goods and services is 30%. Eligible developers enrolled in the App Store Small Business Program receive a 15% commission rate if their proceeds meet the program's US$1M eligibility rules.

Google Play

Google Play's fee system is changing by region during 2026–2027, so one global percentage no longer describes every transaction.

In markets still operating under Google's previous structure, developers enrolled in the 15% tier pay 15% on the first US$1M of annual earnings and 30% above that amount. Auto-renewing subscriptions are charged 15%.

For the EEA, UK and US, Google introduced a new fee structure on June 30, 2026, with fees depending on transaction type and whether the user has a new or existing install. Australia and Japan are scheduled for September 30, 2026, South Korea for December 31, 2026, and the rest of the world for September 30, 2027.

Other operating costs can include cloud hosting, databases, paid APIs, email or SMS services, analytics, customer support, payment processing and user acquisition. These costs depend on the app's architecture and business model and are not mandatory for every app.

Software & Tools

Native development is not the only option. Flutter and React Native can target both iOS and Android from a shared codebase, which can reduce duplicated development work for suitable projects.

Requirements

Publishing through Apple's App Store requires membership in the Apple Developer Program. Individuals and sole proprietors can enroll directly; organizations must satisfy Apple's organization verification requirements, including a D-U-N-S Number.

Apps distributed through the App Store or Google Play must comply with each store's review, content, privacy, billing and technical policies.

Billing rules are particularly important for apps selling digital goods or services because store commissions and alternative-payment options can differ by platform and market.

Risks / Things to Know

Revenue is highly concentrated: RevenueCat's subscription-app dataset reports median monthly revenue of about US$72 one year after launch. Only 17.3% of newly launched apps reached US$1,000 in monthly revenue within two years, while 4.6% reached US$10,000. These figures apply to the subscription-app dataset rather than all app business models.

Platform dependency: Distribution through major app stores means developers must comply with store review, billing, privacy, content and technical policies. Policy or fee changes can affect an app's distribution and economics.

Recurring infrastructure costs can change unit economics: Apps using paid APIs, AI inference, storage, video processing, messaging or other usage-based infrastructure can incur increasing costs as usage grows.

Store economics differ by market: Google Play's regional fee changes continue through 2027, so historical assumptions such as a universal 15% or 30% fee should not automatically be applied to every transaction or country.

Sources

• RevenueCat — State of Subscription Apps 2026 — Dataset covering more than 115,000 subscription apps and US$16B+ in revenue; supports revenue distributions, milestone rates and subscription pricing benchmarks.

• Apple — Apple Developer Program — Developer membership, free development access and US$99 annual distribution membership.

• Apple — App Store Small Business Program — Eligibility and 15% commission.

• Apple — Membership Details — App Store commissions and developer membership pricing.

• Google Play — Service Fees — Google Play service-fee structure.

• Google Play — Lower Service Fees — 2026–2027 regional rollout of Google's revised fee structure.