How to Make Money From an App: 7 Models That Work in 2026

Apps make money in seven main ways: subscriptions, in-app purchases, freemium upgrades, ads, paid downloads, licensing to businesses and fees on transactions. Most successful apps combine two of them. Which ones fit depends on who your users are, how often they come back and whether you sell digital content or real-world services.

The rules changed a lot in 2025 and 2026, especially in the US. Below is how each model works, what Apple and Google take, and what the court rulings mean for your checkout. This is general information, not legal or tax advice.

How much money do apps make?

People spend a lot in apps, but the money is concentrated at the top. Most new apps earn little, and the ones that win usually picked the right model early.

Now the sobering part. RevenueCat's 2026 State of Subscription Apps report, summarized by SaaStr, found that only 17.3% of newly launched subscription apps reach $1,000 in monthly recurring revenue within two years, and only 4.6% reach $10,000.

What are the main ways to make money from an app?

Here are the seven models, with what each is good for.

Subscriptions

Subscriptions are the main model for most non-game apps because they create predictable revenue. RevenueCat's data shows two levers matter a lot. Hard paywalls, where users must pay or start a trial to use the app, convert downloads to paid at a median of 10.7%, versus 2.1% for freemium. And longer trials of 17 to 32 days converted at 42.5%, compared with 25.5% for trials of four days or less.

In-app purchases and freemium

In-app purchases sell something specific: a level pack, a premium filter, a bundle of credits. Freemium gives away the core app and charges for more. Both work best when the free version is genuinely useful and the paid step feels like an obvious upgrade, not a ransom.

Advertising

Ads let you keep the app free, but they only pay well at scale, and they can hurt the experience. They fit apps with lots of short, frequent sessions. Many apps pair ads with a paid option to remove them.

Business licensing and transaction fees

If your customers are businesses, charge the business, not the app store. Per-seat or per-location pricing for a team tool or client portal often earns more from a few hundred customers than a consumer app earns from thousands. Marketplaces and booking apps take a percentage of each transaction instead.

How much do Apple and Google take?

Apple takes 30% of digital sales through the App Store, or 15% for small developers. Google's US fees now start at 10% for a developer's first $1 million a year. Both are lower for subscriptions.

Apple puts the subscription rule this way: "During a subscriber's first year of service, you receive 70% of the subscription price at each billing cycle, minus applicable taxes. After a subscriber accumulates one year of paid service, your net revenue increases to 85%." If you earn more than $1 million in proceeds during a calendar year, the standard rate applies to your future sales that year.

Can US apps link to web checkout now?

Yes. On iOS in the US, apps can link users to a website to pay, and as of fall 2026 Apple is not collecting a commission on those purchases. That could change, because the courts have left the door open to a cost-based fee.

Here's the timeline, based on Frankfurt Kurnit's August 2026 summary and Fenwick's analysis:

• April 30, 2025: a federal court found Apple in contempt of the Epic Games injunction and barred it from charging a commission on purchases made outside the app or restricting how developers design link-outs. Apple updated its US guidelines.
• December 11, 2025: the Ninth Circuit largely upheld that ruling but said a total ban on any commission went too far. It sent the question back to the district court to set a fee tied to Apple's actual costs, likely below the old 27%.
• March 2026: Apple lost its request for a rehearing by the full Ninth Circuit.
• June 30, 2026: the Supreme Court agreed to hear a narrow question about the contempt finding. A decision is expected in 2027.

In-app purchase is still required when users buy digital content or features inside the app, and those purchases still carry Apple's standard commission. Many apps now offer both: in-app purchase for convenience and a web checkout link for a better price.

On Android, Google announced that from October 1, 2026, US developers offering alternative billing must report those transactions and pay the applicable service fees. Purchases outside Google Play's billing avoid the extra 5% billing fee but are not fee-free. Check Google's Play Console help for the current rules before you design your checkout.

Which monetization model should you choose?

Choose based on how often people use the app, who pays and what they are paying for.

1. 1Used weekly or daily, digital value? Start with a subscription, a free trial and an annual plan.
2. 2Occasional use with clear add-ons? Use in-app purchases or a one-time upgrade.
3. 3Huge audience, low willingness to pay? Use ads, with a paid ad-free option.
4. 4Businesses are the customer? License it per seat or per location, and bill outside the stores where the rules allow.
5. 5Connecting buyers and sellers? Take a transaction fee.
6. 6The app supports a service you already sell? Charge for the service. The app is how you keep customers, book them faster and get paid.

Whatever you pick, decide before you build. Pricing changes the onboarding, the paywall screens, the store listing and which payment systems you need. For budgeting the build, see how much it costs to build an app and how long it takes.

We set up subscriptions, in-app purchases and web checkout as part of our mobile app publishing and app development work, including the store listings and review.

Roenic Natarelli

Founder, Virtual Horizons

Roenic runs Virtual Horizons and is a Base44 Legend Partner, Ambassador and Community Pillar, Base44 Shark Tank winner and multiple-time Vibe Sprint winner. The studio builds web and mobile apps, AI voice agents and automations, with more than 10 apps live on the App Store and Google Play. More about us