What's Your App Actually Worth?
Whether you're selling or just curious, knowing your app's value is essential. This guide covers valuation methods for every type of app.
Quick Valuation Formulas
Revenue-Generating Apps:
```
Value = Monthly Net Profit × Multiple (12-48)
```
Apps Without Revenue:
```
Value = (Development Hours × Rate) × 0.3 to 0.5
```
Apps With Users (No Revenue):
```
Value = Active Users × $0.50 to $5 per user
```
Valuation by App Type
iOS Apps
Free apps with users:
1K-10K MAU: $200-1,00010K-50K MAU: $1,000-5,00050K-100K MAU: $5,000-15,000100K+ MAU: $15,000+Paid/subscription apps:
24-36x monthly net revenueRetention rate heavily impacts multipleAndroid Apps
Generally valued slightly lower than iOS:
Similar formulas, apply 0.7-0.8x iOS valuesWeb Apps / SaaS
Most straightforward valuation:
Use SDE multiple method24-48x monthly profit typicalGrowth rate determines multipleChrome Extensions
Based on weekly active users:
Per WAU: $0.02-0.10With revenue: standard multiples applyThe Multiple Explained
The "multiple" is how many months of profit your app is worth.
What Increases Your Multiple:
Growing revenue (+5-15)Low churn (+5-10)Diversified traffic (+3-8)Modern tech stack (+2-5)Good documentation (+2-5)What Decreases Your Multiple:
Declining revenue (-5-15)High churn (-5-10)Single traffic source (-3-8)Old/messy code (-2-5)No documentation (-2-5)Real-World Examples
Example 1: Productivity SaaS
MRR: $2,000Costs: $200Profit: $1,800Growth: Stable, 2% monthlyMultiple: 28x**Valuation: $50,400**Example 2: iOS Utility App
Revenue: $500/month (ads)Costs: $50Profit: $45050K monthly active usersMultiple: 24x**Valuation: $10,800**Example 3: Chrome Extension (No Revenue)
25,000 weekly active usersWell-designed, good reviewsDevelopment: 100 hours at $100/hr**Valuation: $1,250 (users) or $3,000-5,000 (dev time)**Getting an Accurate Valuation
**Be honest** about your numbers**Document everything** to justify value**Get outside opinions** from other founders**Test the market** - list and see what interest you get**Be flexible** - the market determines final valueReady to Sell?
Now that you know what your app is worth, list it on VibePath.
Quick listing processNo commission on salesConnect with buyers who appreciate indie appsYour app has value. Realize it.