Last Updated on June 22, 2021 by James Ewen
Our new tool allows you to calculate how much revenue you can make from your app. For a detailed breakdown of how the calculator works, please scroll down.
About the app revenue calculator
This tool allows you to understand how much revenue you can make from different monetization strategies. The tool will tell you the monetization potential of your app across different monetization strategies.
The calculator focuses on two monetization strategies – advertising and data monetization.
What the results mean – how the ad revenue calculator works
To calculate app revenue for advertising the calculator needs the following input:
- Average daily sessions
- Session duration
- Ads delivered per minute
- OS breakdown – this is because CPM can vary significantly on each OS
We have researched each ad monetization platform to create an average CPM for each OS on each platform. Based on this, we can calculate roughly how much your app can make from both iOS and Android users on each ad monetization network.
Of course, these revenue estimates are a general guide. You might have an app that is more effective at delivering ads. You might also try another type of ad format, or receive payments on a conversion basis. This calculator considers cost per 1000 impressions (CPM) on a display ad inside a mobile app on a specific operating system.
The average CPMs for each mobile advertising network are Applovin, AdColony, Admob, InMobi, and Chartboost. The CPM of each network is visualized below
What is CPM?
CPM means cost-per-mille or cost per thousand. This essentially means how much you’ll earn from a thousand ad impressions.
Data monetization/Location monetization
The other type of monetization that this calculator looks at is data monetization. To achieve this, it requires some similar user metrics. It also requires the general breakdown of where your users are in the world.
As location monetization requires user opt-in, you’ll also need to estimate the number of app users that opt-in to location permissions on your app.
The calculator works by using Tamoco’s CPM range by country (what we already pay our app partners) and uses this to project what your app could earn.
This method of monetization can be used alongside advertising to supplement advertising revenue.
What is app monetization
App ad monetization
In-app advertising is one of the most common forms of app revenue. Publishers allow networks to deliver ads to their users for a share of the revenue from advertisers.
As the industry has developed many different ad forms are appearing. From interstitial to gamification, there are now hundreds of app formats in mobile applications. For a full breakdown, check out this guide.
Large app audiences can be valuable for many different reasons. One of these is that whenever a user interacts with your app, they generate a form of data.
This information can be anonymized and then quantified. It can then provides valuable insights into customer behavior. This is known as big data. It is used for many things – from how to build smart cities to deliver better and more personalized advertising to users.
Again, the following guide is the best place to understand app monetization.
Bonus: If you’re a freelancer or a solopreneur who manages and monetizes his/her own app, you can use this hourly rate calculator to get a better understanding of how much your earnings should be compared to your expenses.
James is the head of marketing at Tamoco