Stop guessing. Start forecasting.
You have built an app, or you are about to. You have a user acquisition strategy. But when investors or partners ask, “What’s the revenue projection?”, do you have a real answer?
Most developers rely on “hope marketing”—hoping that if they get downloads, the money will follow. This is a mistake. Without understanding the variables that drive eCPM and Fill Rate, you are flying blind.
You need a clear forecast. While manual math works, using a specialized tool like the AdRevHub App Advertising Revenue Calculator is the fastest way to turn user metrics into concrete dollar signs.
Here is the white-box guide to how app revenue actually works, the formulas you need, and how to predict your income accurately.
The Math Behind the Money: How Ad Revenue is Calculated
Before you use any calculator, you must understand the engine under the hood. Revenue isn’t magic; it’s a simple equation.
At its core, ad revenue is calculated using this formula:
(Total Impressions ÷ 1,000) × eCPM = Estimated Revenue
Let’s break down the variables:
- Total Impressions: This is not the same as your user count. It is the total number of ads actually displayed.
- eCPM (effective Cost Per Mille): The amount of money you earn for every 1,000 impressions.
Example:
If your app shows 50,000 ads in a day and your eCPM is $5.00:
(50,000 ÷ 1,000) × $5.00 = $250.00
Critical Metrics That Calculators Use
To get an accurate result from a tool like AdRevHub, you need to feed it the right data. A calculator is only as good as its inputs.
Focus on these three levers:
1. DAU (Daily Active Users)
This is your baseline traffic. How many unique people open your app every 24 hours? A high DAU is the foundation of monetization, but it isn’t the whole story.
2. Impressions Per DAU
How many ads does one user see?
- Hyper-casual games: Might show 5–10 ads per user.
- Utility apps: Might only show 1 banner ad per session.
- Strategy: Increasing this metric scales revenue without needing new users.
3. Fill Rate
This is the silent killer of ad revenue. Fill Rate is the percentage of ad requests that actually display an ad. If you request 1,000 ads but the network only has inventory for 800, your Fill Rate is 80%.
Pro Tip: Never assume a 100% fill rate when forecasting. A realistic estimate is usually between 85%–95% depending on your mediation stack.
The “Tier” Factor: Why All Users Are Not Equal
This is the most critical variable that beginners overlook. A user in the United States is not worth the same as a user in India or Brazil.
Advertisers bid differently based on the purchasing power of the audience.
- Tier 1 (High Value): USA, UK, Canada, Australia. Advertisers pay premiums here.
- Tier 2 (Mid Range): Much of Europe, richer parts of Asia.
- Tier 3 (Volume): India, Brazil, Philippines. Low payouts, but often massive traffic volume.
The Revenue Gap:
1,000 video views from the US might earn you $15.00.
1,000 video views from a Tier 3 country might earn you $0.50.
When using the AdRevHub calculator, knowing your audience’s geography is essential for an accurate prediction.
Ad Formats Compared: Video vs. Interstitial vs. Banner
Not all pixels are priced the same. The format you choose dictates your eCPM.
Here is a quick comparison of what you can expect in terms of performance and user experience (UX).
| Ad Format | Typical eCPM (Tier 1) | User Experience Impact | Best Use Case |
| Rewarded Video | $12.00 – $25.00 | Positive (User chooses to watch) | In-game currency, extra lives. |
| Interstitial | $6.00 – $12.00 | Medium (Interrupts flow) | Between levels or screen transitions. |
| Banner | $0.20 – $1.00 | Low (Passive / Ignored) | Constant presence at bottom of screen. |
Key Takeaway: You need roughly 20x more traffic to make the same money with Banners as you would with Rewarded Video.
How to Estimate Your Earnings with AdRevHub
You don’t need to build a complex spreadsheet to figure this out. We designed AdRevHub to handle the variables for you.
Step-by-Step Forecast:
- Go to AdRevHub.com.
- Input your DAU: Enter your current or expected daily users.
- Select your Platform: iOS users typically generate higher eCPMs than Android users.
- Choose your Format: Select Banner, Interstitial, or Rewarded Video to see how the numbers shift.
- Analyze the Output: The tool will instantly project your Daily, Monthly, and Yearly revenue.
This allows you to simulate scenarios. “What happens if I switch from Banners to Interstitials?” You can see the financial impact immediately.
Realistic Industry Benchmarks (What to Expect)
Let’s be real. You aren’t going to retire on 500 users.
To hit a target of $100 per day, here is roughly what you need based on current market averages:
- Scenario A (Tier 1 Traffic + Rewarded Video):You need approx. 6,000 – 8,000 DAU (assuming 1.5 views/user).
- Scenario B (Global Traffic + Banners):You need approx. 100,000+ DAU to hit that same $100/day.
These numbers highlight why strategy matters. A smaller, high-value audience often beats a massive, low-value one.
FAQ: Common Questions on App Monetization
How do I calculate app ad revenue?
The formula is: (Impressions ÷ 1,000) × eCPM.
Most developers track this automatically through their dashboard (like AdMob), but for forecasting future income, you must estimate your Daily Active Users (DAU) and multiply it by the expected eCPM of your ad format.
How much does AdMob pay per 1,000 views?
It varies, but typically $0.50 to $15.00.
For standard banner ads, AdMob pays around $0.20–$1.50 per 1,000 impressions. For Rewarded Video ads in Tier 1 countries (like the US), the rate jumps significantly to $10.00–$20.00 per 1,000 views.
What is a good eCPM for mobile games?
Aim for $15+ for Rewarded Video and $8+ for Interstitials.
These figures apply to Tier 1 markets. In developing markets, a “good” eCPM might be $1.00–$3.00. High-converting niches (like Finance or Casino games) generally see much higher eCPMs than casual puzzle games.
What factors affect my app’s ad revenue?
Geography, Ad Format, and Operating System.
Users in the US/UK pay more (Geography). Video ads pay more than banners (Format). iOS users often spend more than Android users (OS). Seasonality also matters; ad rates typically spike in Q4 (Christmas season).
How many daily active users do I need to make $100 a day?
Approximately 10,000 DAU in a Tier 1 region.
This assumes you are using high-paying formats like Interstitials or Rewarded Video. If you rely solely on banner ads, you may need upwards of 50,000 to 80,000 daily users to reach the same $100 milestone.