App Review Ratio Math

A method for estimating total users of an app by analyzing review counts, shared by Syed Balkhi when discussing business acquisition opportunities.

Core Concept

• Look at number of reviews an app has
• Assume only 3-4% of total users leave reviews
• Use this to back-calculate approximate total user base

How to Calculate

• Take total number of reviews
• Divide by 0.03-0.04 (3-4%) to estimate total user base
• Example: 100 reviews likely means ~2,500-3,300 total users

Application

• Use this method to:
  • Evaluate market size of competitors
  • Assess potential acquisition targets
  • Gauge product category popularity
  • Understand market penetration

Additional Analysis Points

• Look at review trends over time
• Check review distribution across categories
• Compare review counts between competing apps
• Use this as one of multiple data points for market analysis

Limitations

• Just an approximation/rule of thumb
• Review rates may vary by:
  • Industry
  • Product type
  • User demographics
  • Platform

This framework was shared as part of a larger discussion on evaluating business opportunities and acquisitions in software markets.