How to make money from an app: costs, tips and steps

Published Tuesday 21 April 2026

Table of contents

• Why people like the app business
• App monetisation strategies
• Can you still make money from an app?
• Costs of developing an app
• How to build an app for free or on a budget
• The process of building an app
• FAQs on building an app

Key takeaways

• Focus on building a minimal viable product (MVP) with only one or two core features first, as this controls development costs that can range from around $60,000 for a basic web app to over $200,000 for a complex mobile application.
• Choose your monetisation strategy based on your target audience, since consumer apps need large user volumes to profit from low individual pricing, while B2B apps can charge higher fees to fewer users.
• Start your development process with a thorough discovery phase to define core features and user flows, as changes become ten times more expensive with each subsequent phase of development.
• Track your app's revenue streams, operating expenses, and cash flow using accounting software, as the ATO has found a 90 per cent correlation between SMEs calculating tax correctly and using accounting software.

Key takeaways

• Focus on building a minimal viable product (MVP) with only essential features to control development costs. Costs can range from around $60,000 for a basic web app to over $200,000 for a complex mobile application.
• Choose your monetisation strategy based on your target audience, with consumer apps often relying on larger audiences while business-to-business (B2B) apps can charge higher fees to fewer users.
• Follow a structured development process starting with discovery to define core features, as early planning helps reduce costly changes later.
• Track your app's financial performance using accounting software to monitor revenue streams, operating expenses, and cash flow, as the Australian Taxation Office (ATO) has found a 90 per cent correlation between small and medium enterprises (SMEs) calculating tax correctly and using accounting software.

Why people like the app business

App businesses generate profit by solving a problem once and selling that solution repeatedly. Unlike physical products, you don't need to manufacture more inventory as sales grow.

The core benefit is scalability: build one solution and sell it to unlimited customers without increasing production costs. Popular apps in weather, project management, and entertainment all follow this model.

Understanding how to generate revenue is essential for app success.

App monetisation strategies

App monetisation is how your app generates revenue. The right model depends on your app's purpose and target audience.

Here are the five most common strategies:

• In-app advertising: Display ads in a free app and earn revenue when users view or tap them
• In-app purchases: Offer the app for free and charge for extra features, content, or virtual items
• Subscriptions: Charge a recurring fee for ongoing access to your content or services
• Paid downloads: Charge a one-off fee for users to download your app
• Sponsorships: Partner with another business to include branded content or features

Once you've chosen a monetisation model, you'll want to understand market realities.

Can you still make money from an app?

Yes, you can still make money from an app, but success depends on matching your monetisation model to realistic user volumes.

Here's the reality of the current market:

• Consumer apps require high user volume because individual pricing is typically low
• B2B apps can charge higher fees, so you need fewer users to reach profitability
• User acquisition directly determines whether your app becomes profitable

The number of users you need depends on your development costs and chosen revenue model.

Before you start building, you need to understand the investment required.

Costs of developing an app

Michael Yared, Echobind

Web apps are cheaper to produce. You can create a web app that does one thing really well for about $60K. Double that if you want it to do lots of things. And if you want it to live on mobile too, then you're looking at over $200K.

App development costs range from $60,000 for a simple web app to over $200,000 for a complex mobile application. Your total investment depends on features, platform, and whether you hire developers or build it yourself.

Here's what you can expect to invest:

• Basic web app: Around $60,000 for single functionality
• Complex web app: Around $120,000 for multiple features
• Mobile app: Over $200,000 when adding iOS or Android versions
• Marketing: Additional budget required for promotion and user acquisition

For tax purposes in Australia, you may allocate certain expenditure on in-house software to a software development pool and deduct it over time at the following rates (such as 30% in years two through four for post-2015 expenses), depending on the circumstances. Check with your accountant about how to treat these expenses.

If custom development costs seem high, there are alternatives to consider.

How to build an app for free or on a budget

No-code platforms let you build functional apps without writing code or hiring developers. These tools are ideal for testing your idea before committing to custom development.

Popular no-code options include:

• AppSheet: Create apps from spreadsheets with Google's platform
• Bubble: Build web apps with visual programming tools
• Adalo: Design mobile apps without coding experience

Benefits of no-code development:

• Lower upfront costs than hiring developers
• Faster time to launch for simple applications
• Ability to test your concept with real users

Limitations to consider:

• Less flexibility for complex features
• May not scale well as your user base grows
• Platform fees can add up over time

No-code works best for validating your idea. Once you've proven demand, you can invest in custom development for a more robust solution.

Whether you use no-code tools or hire developers, following a structured process helps control costs.

The process of building an app

Building an app successfully requires a methodical approach that controls costs and prevents budget overruns. The key is starting with an MVP, which is a basic version of your app with only essential features.

Expert strategy from Echobind:

• Choose only one–two core features to keep your initial scope manageable
• Build the MVP first to test your concept at the lowest possible cost
• Resist adding features early because competitors rarely overtake simple MVPs with complexity
• Perfect your core functionality before expanding to additional features

One common workflow uses stages such as discovery, wireframing, prototyping, design, and development, though many teams work iteratively. Each phase builds on the previous step to control costs and ensure quality.

Here's what each phase involves:

Phase 1: Discovery

This phase establishes what your app will do and how users will navigate it.

• Purpose: Define essential features and user flows
• Outcome: Produce clear feature requirements and navigation paths
• Why it matters: Reduce costly changes, which become ten times more expensive with each subsequent phase

Phase 2: Wireframes

Wireframes are simple black-and-white layouts showing where content and buttons will appear.

• Purpose: Create basic page layouts without visual design
• Outcome: Establish clear visual structure showing content placement
• Focus: Map functionality and user interface elements

Phase 3: Prototypes

Prototypes let you click through your app's screens to test the user experience before writing any code.

• Purpose: Build clickable navigation without backend functionality
• Outcome: Create a testable user experience you can share with others
• Benefit: Validate your design before investing in development

Phase 4: Designs

This phase transforms your wireframes into the final look and feel of your app.

• Purpose: Create polished visual designs from wireframe layouts
• Outcome: Produce a complete interface with styled buttons, menus, and pages
• Requirement: Define every interactive element before development begins

Phase 5: Development

Development is when your designs become a working application through code.

• Purpose: Write the code that makes your app functional
• Outcome: Deliver a working application ready for testing and launch

FAQs on building an app

Here are answers to common questions about building and monetising an app.

How much does it cost to build an app?

Basic web apps start around $60,000, while complex mobile applications can exceed $200,000. Your costs depend on features, platform choice, and whether you hire developers or use no-code tools.

What's the best way to make money from an app?

The best monetisation strategy depends on your target audience. Consumer apps typically use in-app advertising or freemium models with large user bases, while B2B apps can charge higher subscription fees to fewer users.

Can I build an app without coding experience?

Yes, no-code platforms like Bubble, AppSheet, and Adalo let you build functional apps without writing code. These tools work well for testing your concept before investing in custom development.

What is an MVP and why do I need one?

An MVP (minimal viable product) is a basic version of your app with only essential features. Building an MVP first helps you test your concept at the lowest cost and reduces the risk of investing in features users don't want.

How long does it take to build an app?

Development timelines vary based on complexity. A simple web app with one–two core features might take a few months, while complex mobile applications with multiple features can take six months to a year or more.