Mobile App Breakeven Analysis

Mobile App Analysis
Development & design cost

500,000.00
Marketing & publicity cost
250,000.00
Total cost
750,000.00
Price per app:
In-app purch $ val.

0.99
1.99
2.99
3.99
2.99
In-app purchase
# apps sold
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
550,000
600,000
3,300,000
3,350,000
3,400,000
3,450,000
3,500,000
Rev on app sale

299,000.00
448,500.00
598,000.00
747,500.00
897,000.00
1,046,500.00
1,196,000.00
1,345,500.00
1,495,000.00
1,644,500.00
1,794,000.00
9,867,000.00
10,016,500.00
10,166,000.00
10,315,500.00
10,465,000.00
D/L per day required to recoup costs

Days
# D/L per day
15
23,333.33
30
11,666.67
45
7,777.78
60
5,833.33
75
4,666.67
90
3,888.89
105
3,333.33
120
2,916.67
0.99
3,960.00
5,940.00
7,920.00
9,900.00
11,880.00
13,860.00
15,840.00
17,820.00
19,800.00
21,780.00
23,760.00
130,680.00
132,660.00
134,640.00
136,620.00
138,600.00
Conversion Rate
4%
3%
2%
1%
In-app purchases (IAP)

1.99
2.99
5,970.00
5,980.00
8,955.00
8,970.00
11,940.00
11,960.00
14,925.00
14,950.00
17,910.00
17,940.00
20,895.00
20,930.00
23,880.00
23,920.00
26,865.00
26,910.00
29,850.00
29,900.00
32,835.00
32,890.00
35,820.00
35,880.00
197,010.00
197,340.00
199,995.00
200,330.00
202,980.00
203,320.00
205,965.00
206,310.00
208,950.00
209,300.00
Number of days required to recoup costs

# D/L per day
Num days
100 3500 days
500 700 days
1000 350 days
1500 233 days
2000 175 days
2500 140 days
3000 116 days
3500 100 days
4000 87 days
4500 77 days
5000 70 days
5500 63 days
6000 58 days
Approximate number of apps required to be sold

350,000
Target apps to sell over one year
140,000
Tot.
3.99 in-app purch
3,990.00
19,900.00
5,985.00
29,850.00
7,980.00
39,800.00
9,975.00
49,750.00
11,970.00
59,700.00
13,965.00
69,650.00
15,960.00
79,600.00
17,955.00
89,550.00
19,950.00
99,500.00
21,945.00
109,450.00
23,940.00
119,400.00
131,670.00
656,700.00
133,665.00
666,650.00
135,660.00
676,600.00
137,655.00
686,550.00
139,650.00
696,500.00
ps required to be sold to generate a profit on expenses incurred
Gross rev
App sale + IAP
Apple cut
Net
318,900.00
95,670.00
478,350.00
143,505.00
637,800.00
191,340.00
797,250.00
239,175.00
956,700.00
287,010.00
1,116,150.00
334,845.00
1,275,600.00
382,680.00
1,435,050.00
430,515.00
1,594,500.00
478,350.00
1,753,950.00
526,185.00
1,913,400.00
574,020.00
10,523,700.00
3,157,110.00
10,683,150.00
3,204,945.00
10,842,600.00
3,252,780.00
11,002,050.00
3,300,615.00
11,161,500.00
3,348,450.00
223,230.00
334,845.00
446,460.00
558,075.00
669,690.00
781,305.00
892,920.00
1,004,535.00
1,116,150.00
1,227,765.00
1,339,380.00
7,366,590.00
7,478,205.00
7,589,820.00
7,701,435.00
7,813,050.00
Profit (Loss)
(526,770.00)
(415,155.00)
(303,540.00)
(191,925.00)
(80,310.00)
31,305.00
142,920.00
254,535.00
366,150.00
477,765.00
589,380.00
6,616,590.00
6,728,205.00
6,839,820.00
6,951,435.00
7,063,050.00
D/L per day to reach sales level over varying times (in months, assuming 30-day mo
ROI
1 month
2 months
3 months
4 months
-70%
3,333
1,666
1,111
833
-55%
5,000
2,500
1,666
1,250
-40%
6,666
3,333
2,222
1,666
-26%
8,333
4,166
2,777
2,083
-11%
10,000
5,000
3,333
2,500
4%
11,666
5,833
3,888
2,916
19%
13,333
6,666
4,444
3,333
34%
15,000
7,500
5,000
3,750
49%
16,666
8,333
5,555
4,166
64%
18,333
9,166
6,111
4,583
79%
20,000
10,000
6,666
5,000
882%
110,000
55,000
36,666
27,500
897%
111,666
55,833
37,222
27,916
912%
113,333
56,666
37,777
28,333
927%
115,000
57,500
38,333
28,750
942%
116,666
58,333
38,888
29,166
(in months, assuming 30-day months)

5 months
6 months
666
555
1,000
833
1,333
1,111
1,666
1,388
2,000
1,666
2,333
1,944
2,666
2,222
3,000
2,500
3,333
2,777
3,666
3,055
4,000
3,333
22,000
18,333
22,333
18,611
22,666
18,888
23,000
19,166
23,333
19,444
Variables
Development & Design Cost
Marketing & Publicity Cost
In-app
In-app
In-app
In-app
purchase
purchase
purchase
purchase
Conversion
Conversion
Conversion
Conversion
Rate
Rate
Rate
Rate
Price per app
value
value
value
value
#1
#2
#3
#4
#1
#2
#3
#4
500,000.00
250,000.00
0.99
1.99
2.99
3.99
4%
3%
2%
1%
1.99
Note: This tab contains your variables. Please refer to the documentation tab for m
he documentation tab for more details.
Output
Approximate
number of
Provider cut
downloads
Total in-app
Gross revenue (Apple's or
required to
purchase
(app sale + in- Google's 30%
recoup costs
Rev on app sale revenue
app purchases) cut).
350,000 $1,046,500.00
$69,650.00 $1,116,150.00
$334,845.00
Note: The numbers in this tab are based on formulas. Do not edit anything in row 4
Downloads per da
Return on
Your Net
Profit (Loss)
investment
1 month
2 months
$781,305.00
$31,305.00
4.17%
11,666
5,833
anything in row 4 (highlighted in yello); otherwise you will get errors.
Downloads per day required to recoup costs in:
3 month
4 months
3,888
5 months
2,916
6 months
2,333
1,944
Documentation
Welcome to the Mobile App Breakeven Analysis Workbook
This documentation is meant to give a high-level overview of how this workbook functions.
Overview
Mobile app developers often want to understand how many downloads and in-app purchases
This workbook lets you calculate those numbers.
Explanation
This workbook gives you a number of variables.
These variables can be inputted in the Variables tab.
Development & design cost
Marketing & publicity cost
In-app purchase value (USD). The workbook contains room for four separate in-app purc
In-app conversion rate. This is the percentage of users who will purchase for each of the
Price per app
What is calculated
The following values are calculated and presented to the end user in the
Revenue from app purchase (this excludes in-app purchases)
Revenue from in-app purchases
Gross revenues
Apple's (or Google's) cut. (Currently 30% of gross revenues.)
Developer's net
Profit (Loss)
ROI
Downloads per day required to recoup costs over varying time periods (15 days, 1 mont
Approximate number of apps required to be sold to generate a profit on expenses incurr
Things to be aware of
This tool is a model.
That means it's a best-guess approximation of the real world.
As with fashion models, think of this as "photoshopped reality.:
This means that your analysis is driven by your assumptions.
Make good assumptions--the values you input in the "Variables" tab--and you will have g
This workbook assumes you're distributing on Apple's OR Google's platforms but NOT bo
There is a hidden sheet, "Detailed Data", which you can unhide if you want. It will allow
The data in the Output tab are generated from formulas. Don't muck around with formu
how this workbook functions.
ownloads and in-app purchases they need to generate in order to recoup money spent.
m for four separate in-app purchase values.

ho will purchase for each of the in-app purchase values.
user in the Output tab.
time periods (15 days, 1 month, 2 months, 3 months, 4 months, 5 months, 6 months)
ate a profit on expenses incurred.
ables" tab--and you will have good output.

Google's platforms but NOT both.
nhide if you want. It will allow you to audit the workbook and see how you get from the Variables to th
Don't muck around with formulas if you don't know how they work; otherwise you'll get errors.
rom the Variables to the Output.

ou'll get errors.

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Mobile App Analysis

Development & design cost

In-app purch $ val.

Rev on app sale

D/L per day required to recoup costs

In-app purchases (IAP)

Number of days required to recoup costs

Approximate number of apps required to be sold

ps required to be sold to generate a profit on expenses incurred

(in months, assuming 30-day months)

Price per app

he documentation tab for more details.

Downloads per day required to recoup costs in:

how this workbook functions.

m for four separate in-app purchase values.

user in the Output tab.

ables" tab--and you will have good output.

rom the Variables to the Output.

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