App payback calculator
Thinking of buying an app? Enter the asking price and the numbers behind it to see how long it takes to earn the money back, and what happens if revenue falls.
The deal
What the app brings in per month, before store fees.
Apple and Google typically keep 15% to 30% of sales. Enter 0 if your revenue figure is already net.
Hosting, subscriptions, ads, contractors and tools.
Cumulative profit against the price
Green is the base case. The dashed grey line is revenue down 30%.
| Scenario | Monthly profit | Payback | First-year return |
|---|---|---|---|
| Revenue down 30% | $564 | 21.3 months | 56% |
| Base case | $870 | 13.8 months | 87% |
| Revenue up 30% | $1,176 | 10.2 months | 118% |
Price multiples. The asking price is 0.8× annual revenue and 1.1× annual profit. Across 30 listings on AppAcquire with revenue, sellers currently ask a median of 1.7× annual revenue (see the data).
How the calculation works
Monthly profit is monthly revenue, less the store's share, less your running costs. The payback period is the price divided by that profit, and the first-year return is a year of profit divided by the price. The chart adds up profit month by month until it crosses the purchase price.
The result is only as good as the inputs. Revenue proven at the source, from a connected RevenueCat, Stripe or TrustMRR account, is worth more than a figure typed into a listing. Our due-diligence checklist shows what to check, and the app value calculator is the seller's side of the same question.
Frequently asked questions
- How do you calculate the payback period on an app?
- Divide the price by monthly profit. Monthly profit is monthly revenue minus store fees and running costs. An app bought for $12,000 that makes $1,000 a month in profit pays back in 12 months.
- What is a good payback period for a small app?
- There is no single answer. Flippa sales data for H1 2026 puts the average app business at about 2.6× annual profit, a payback of roughly 31 months, and the top quartile at about 5.5×, or roughly 66 months. Apps with steadier, verified revenue can justify a longer period, and riskier or declining apps should pay back faster.
- Why does the calculator include store fees?
- Apple and Google keep a share of every sale, commonly 15% to 30%, before the developer is paid. Buyers who forget this overestimate profit. If the revenue you enter is already net of fees, set the store fee to 0.
- Why test a revenue drop?
- App revenue moves. Testing a 30% fall shows whether the deal still works if things get worse, which is the safest way to compare an asking price with the risk.