Play Store app revenue calculator: how it works
An Android app can earn from two places: ads and purchases. Ads are paid per thousand impressions (eCPM) and AdMob passes most of that on to you. Purchases (in-app items, or the price of a paid app) go through Google Play, which keeps a service fee. This calculator adds the two together.
It first estimates daily active users (DAU), either from monthly downloads and the share that stay active, or from a DAU you enter. For ads it multiplies DAU by the daily ad requests of each format, the fill rate and the eCPM, then applies the AdMob payout share. eCPM is taken from benchmark ranges for India, US / Tier 1, Tier 2 and Tier 3 audiences (single region or your own mix), or from your own AdMob numbers. For purchases it estimates buyers, removes any tax inside the price and subtracts the Play fee.
Formula and assumptions
Formula
Ad revenue per day = DAU × Σ(impressions per format × fill rate × eCPM ÷ 1,000) × AdMob payout share (0.68)IAP gross per month = monthly active users × buyer % × purchases × price; paid app = downloads × priceNet store revenue = gross ÷ (1 + tax %) × (1 − Play fee); fee = 15% up to $1M a year, 30% aboveMonthly revenue = ad revenue × 30 + net store revenue; yearly = monthly × 12
Assumptions
- Ad revenue uses third-party eCPM benchmarks (see sources) as low / expected / high values. They are estimates: Google does not publish eCPM by country or format, and your real AdMob eCPM can be far lower or higher. Use the "my own eCPM" option once you have real numbers.
- Ad requests are multiplied by the fill rate (default 80%, an Earnlitix assumption) and by the AdMob payout share (default 68%, a commonly quoted figure that Google does not publish; editable).
- DAU is estimated as monthly downloads × the share that become daily users (default 3.8%, the average Android day-30 retention), or you can enter DAU directly. DAU is assumed to stay constant all year, with 30 days a month.
- In-app purchase and paid-app revenue is reduced by the Google Play service fee: 15% on the first $1M (USD) a year and 30% above that. Tax already inside your price (for example 18% GST in India) is removed first. Subscription, programme and regional fee variants are not modelled.
Worked example
100,000 downloads a month, US audience, ads + in-app purchases
- DAU = 100,000 × 4% = 4,000 (the default is 3.8%; 4% keeps the sums round).
- Daily requests per user: 20 banner, 3 interstitial, 1 rewarded. Expected US eCPM: $0.49, $11.20, $17.50. Revenue per DAU per day = (20 × 0.49 + 3 × 11.2 + 1 × 17.5) ÷ 1,000 = $0.0609.
- Fill 80% and AdMob share 68%: 0.0609 × 0.8 × 0.68 = $0.03313 per DAU per day, so 4,000 × 0.03313 × 30 = $3,975.55 a month (low $3,068.16, high $5,222.40).
- Purchases: monthly active users = 4,000 ÷ 20% = 20,000; 2% buy once at $4.99 → 400 × 4.99 = $1,996 gross. Play fee 15% → $1,696.60 net.
Result: Expected: $5,672.15 a month (about $68,066 a year). Ads range gives roughly $4,765 to $6,919 a month.
Limitations
- eCPM figures are third-party estimates from different years and methods. They disagree widely, and real AdMob revenue is often at the low end for India. Treat the result as a planning range.
- DAU is held constant for the year. Real apps grow and decay, retention varies by category (about 1% to 9% at day 30), and uninstalls and seasonality (Q4 pays more) are not modelled.
- Fees vary by market, programme and subscriptions, and tax (GST, VAT, withholding, TCS) depends on where you live. Earnings are before your own income tax.