In app development—as in any business undertaking—one of the most important criteria of success is your return on investment, or ROI. The basic formula for ROI is the following:
Return on Investment = Net Profit / Investment x 100
This result, in percentage form, is your ROI. All the math aside, your ROI shows the financial performance of a product or service over a specified period of time. ROI's are often estimated ahead of time to determine if the undertaking of a project will generate enough profit to make it viable. Your ROI can also be calculated “on the fly” once a product or project is launched to assess how well it's doing, and if any tweaks or adjustments need to be made to improve it.
The formula above is a bit oversimplified, and different factors go into more accurately calculating ROI's depending on the project being measured. For example, the Apple Apps Store and Google play both take 30% of an app's profits before paying out to those whose apps are listed. They're the biggest markets in the mobile apps space, and developers must count among their costs the maximized exposure and higher number of customers they get from the big apps stores.
With these factors in mind, AppsAustin has created a unique ROI calculator, specifically designed for mobile applications. By entering the requested information in the fields below, you can measure the ROI of a currently-available app, or determine what rate of downloads or sales would be necessary to make a new app profitable.