Time Tracking App

How Profitable Is A Time Tracking App? (Updated for 2024)

Pat Walls

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Updated: September 29th, 2024

How Profitable Is A Time Tracking App? (Updated for 2024)

So you want to start a time tracking app?

And the first question that came to your mind was, “well, are time tracking apps actually profitable?”

Especially considering:

You could start a time tracking app with as low as $50
Based on our data, time tracking apps generate an average of $913K per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a time tracking app.

Let’s dive in!

Is a time tracking app profitable?

Yes, a time tracking app is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $913K per year with an estimated gross margin of 20%, you could expect to recover your investment within 11 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your time tracking app.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your time tracking app is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a time tracking app worth it?

If you’re wondering if a time tracking app is worth it, the answer is a big YES. With time tracking apps, you have the potential to earn $913K per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a time tracking app to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful time tracking apps case studies.

Examples Of Profitable Time Tracking Apps

Here are a few examples of profitable time tracking apps, and a few more details about them:

1. Labor Sync ($2.22M/year)

Dean Logan, the co-founder and CEO of Labor Sync, came up with the idea for his business after struggling to keep track of his employees' time and losing money due to mismanagement. Realizing that other business owners with mobile workforces likely faced the same issues, Logan partnered with his father and IT guru Joe Burger to develop Labor Sync, an employee time and GPS tracking app. After saving $104,000 in just one year with the app, Logan knew he had a successful product on his hands.

Is it profitable? Yes
How much money it makes: $2.22M/year

How I Launched A $185K/Month Employee Time & GPS Tracking App

Labor Sync is a mobile application that provides business owners with the ability to track the time and GPS location of their mobile workforce and after just one year of use, they saved $104,000 across 45 employees despite starting off with no funds for advertising or marketing.

Read this case study

Read by 8,209 founders

2. Time Doctor ($22M/year)

Liam Martin and his co-founder Rob Rawson conceived the idea for Time Doctor from a blend of personal frustrations and serendipitous encounters. Liam, who was struggling with managing remote tutors for his previous business, constantly faced disputes over billed hours and actual work done. His personal stress even led to serious health issues. Around this time, at South by Southwest, Liam met Rob, who had an early version of Time Doctor, developed for his internal team.

Intrigued by the potential of this tool to solve his own business issues, Liam saw a broader application for remote work management. Encouraged by their mutual experiences and a timely burst of entrepreneurial itch, they decided to refine the product together. They validated their concept by launching a beta version and eventually moved to a paid model, which revealed true user commitment and provided critical feedback. Throughout the ideation phase, they faced the challenge of balancing product development with market readiness and learned early the importance of charging for their tool to drive real user engagement and valuable insights.

Is it profitable? Yes
How much money it makes: $22M/year

How Rob Rawson Bootstrapped Time Doctor to $22M ARR in 14 Years

Read this case study

Read by 9 founders

3. Truein ($480K/year)

Ankit Tanna, the founder of Truein, came up with the idea for his business after realizing the pain points in attendance management for contractual and remotely deployed staff. He noticed that existing solutions lacked controls, transparency, and employee experience, so he leveraged AI and face recognition technology to create Truein. The business is currently generating an impressive $40,000 in monthly recurring revenue (MRR).

Is it profitable? Yes
How much money it makes: $480K/year
How much did it cost to start: $50

We Built A $40K/Month AI Face Recognition Based Attendance Software [From India]

Truein is a face recognition-based attendance solution that uses AI technology to address attendance use cases for contractual and distributed staff, boasting an MRR of $40,000 and targeting low and medium skill enterprise customers.

Read this case study

Read by 3,878 founders

Learn more about starting a time tracking app:

Where to start?

-> How much does it cost to start a time tracking app?
-> Pros and cons of a time tracking app

Need inspiration?

-> Other time tracking app success stories
-> Marketing ideas for a time tracking app
-> Time tracking app slogans
-> Time tracking app names

Other resources

-> Time tracking app tips

How much can you make with a time tracking app?

With a time tracking app, you can make an average of $913K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $50. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 11 months.

How much does a time tracking app make a week?

Based on our data, average weekly revenue for a time tracking app ranges around $55.6K. As such, you could see monthly revenues of $223K.

To know if your time tracking app achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your time tracking app.

How much do time tracking apps owners make?

The income of a time tracking app owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established time tracking app is about $55.6K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a time tracking app owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Time Tracking App Profit Margins

Generally speaking, a time tracking app can expect profit margin of around 20%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a time tracking app, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, time tracking app owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, time tracking app owners can ensure long-term sustainability and profitability for their business.

Time tracking app owner salary

The salary of a time tracking app owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established time tracking app, in a prime position, might see an average weekly salary around the ballpark of $11.1K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a time tracking app may be a promising business to start - but the success of your time tracking app mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable time tracking app.

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Starting A Time Tracking App: Everything You Need To Know

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