If you’ve ever used Duolingo to learn a language or even just downloaded it once and got hooked on its little green owl notifications you might have wondered:
How does Duolingo actually make money if it’s free to use?
That’s what we’ll explore in this article.
As someone who loves studying how tech companies build scalable revenue models, I’ve always found Duolingo’s approach fascinating it’s simple on the surface, but very smart underneath.
Let’s break it down in plain English.
What Is Duolingo?
Duolingo is a free language-learning app that uses gamification to make learning fun. You can learn Spanish, French, German, or even fictional languages like High Valyrian from Game of Thrones.
The app gives you lessons, points, streaks, and rewards so learning feels more like playing a mobile game than attending a classroom session.
But despite being free for most users, Duolingo has built a multi-million dollar business that keeps growing year after year.
So how does it actually earn revenue?
The Simple Answer
Duolingo makes money mainly from four sources:
- Paid subscriptions (Super Duolingo & Duolingo Max)
- Advertising shown to free users
- In-app purchases of small perks
- Duolingo English Test (a paid certification exam)
Among these, subscriptions are the biggest contributor — bringing in more than 75% of total revenue.
Now let’s go deeper into how each stream works and why this model is so effective.
1. Freemium Model: The Foundation of Everything
The magic of Duolingo lies in its freemium approach — offering the entire app for free, but encouraging users to pay for a premium experience.
When you download Duolingo, you can access lessons, quizzes, and streaks without paying a single rupee. This free access helps Duolingo attract hundreds of millions of users globally.
The logic is simple:
- Get as many users as possible on board for free
- Build habit and engagement
- Convert a small percentage of them into paying subscribers
The free plan also includes ads and certain limitations (like limited “hearts”), which create a soft push toward upgrading to the paid version.
It’s a classic strategy — hook users with free value, then convert the most engaged ones later.
2. Paid Subscriptions – The Core Revenue Engine
The biggest money-maker for Duolingo is its subscription plan.
Duolingo offers two main premium options:
- Super Duolingo (previously called Duolingo Plus)
- Duolingo Max, which includes AI-powered features
What You Get as a Paid User
When you subscribe, you unlock features like:
- Ad-free experience (no interruptions between lessons)
- Offline learning (download lessons to learn anywhere)
- Unlimited hearts (no lesson limits when you make mistakes)
- Progress tracking & test out options
- AI-driven practice and feedback (in the Max plan)
In short — it’s faster, cleaner, and smoother.
The Numbers Behind It
As of 2025, Duolingo has over 10 million paying subscribers.
And this single stream contributes around 75–80% of the company’s total revenue.
In Q2 2025 alone, Duolingo earned $210 million from subscriptions — a 46% year-on-year jump.
Why It Works
This model works because Duolingo’s premium plan offers comfort and motivation, not just content.
Users aren’t paying for new lessons — they’re paying for convenience, motivation, and a better experience.
The emotional element is key: people value their learning streaks and don’t want to lose them. Paying for unlimited hearts or freezes feels worth it.
This mix of habit, gamification, and subtle friction is what drives recurring revenue.
3. Advertising – Monetising the Free Users
For users who don’t pay, Duolingo still earns revenue — through ads.
Every time a free user completes a lesson or exits the app, they see a short ad. Each ad view or click contributes small revenue, and when multiplied by millions of daily users, it becomes a significant stream.
The Share of Ads in Revenue
In 2023, ads brought in around 9% of Duolingo’s total revenue. By 2024, the figure hovered between 7–8%.
It’s not the biggest earner, but it’s consistent and helps sustain the free version without depending entirely on subscriptions.
The Balancing Act
However, ad-based monetisation comes with a trade-off — too many ads can frustrate users and reduce engagement.
Duolingo has to balance ad frequency carefully, ensuring free users still enjoy the app enough to keep coming back.
4. In-App Purchases (Microtransactions)
Duolingo also allows users to buy small items inside the app — often related to maintaining progress or boosting performance.
Common In-App Purchases
- Streak Freeze: Prevents you from losing your streak if you skip a day
- Extra Hearts: Lets you keep playing after mistakes
- Gems: Virtual currency to buy cosmetic upgrades or power-ups
These purchases are typically one-time or occasional payments rather than recurring.
Why It Works
Gamification makes users emotionally attached to their progress. Missing a streak after 200 days feels painful — so spending a few dollars (or rupees) to keep it alive feels reasonable.
In 2023, in-app purchases contributed about 6.5% of total revenue, adding a steady side income stream.
Duolingo English Test – Expanding Beyond the App
Here’s something many people don’t know:
Duolingo also runs an online English proficiency test called the Duolingo English Test (DET).
It’s a paid, globally accepted certification used by universities and companies to assess language skills — similar to IELTS or TOEFL.
Why It’s Smart
This product does two things:
- Diversifies revenue beyond app subscriptions.
- Builds credibility as an educational brand, not just a game.
Numbers
In 2023, the English Test generated around $41 million, about 8% of Duolingo’s total revenue.
And it continues to grow steadily every year as more institutions accept it.
This stream is strategic — it’s not just about money, but about brand positioning in the global education space.
Summary of Duolingo’s Revenue Streams
Here’s a quick breakdown of how Duolingo earns:
| Revenue Stream | Share of Total Revenue | What It Offers |
|---|---|---|
| Subscriptions | 75–80% | Premium access, no ads, AI features |
| Advertising | 7–10% | Monetises free users through ads |
| In-App Purchases | 5–7% | Paid boosts, hearts, and streak freezes |
| English Test (DET) | 7–10% | Paid certification exam for English proficiency |
(Approximate figures based on 2023–2025 reports)
Why Duolingo’s Model Works So Well
There are a few key reasons why Duolingo’s business model is so effective:
1. Product-Led Growth
Duolingo doesn’t rely heavily on ads or influencer marketing to acquire users. The product itself — engaging, free, and fun — attracts people organically.
2. Massive User Base
With over 500 million downloads, Duolingo can monetise even a small fraction of users and still earn big.
3. Low Operating Cost
Once the app is built, delivering lessons to new users costs almost nothing. That means higher profit margins.
4. Habit-Driven Engagement
Duolingo isn’t just about learning words — it’s about maintaining a streak. This “habit loop” keeps users coming back daily, increasing the chances of subscription upgrades.
5. Global Appeal
Everyone wants to learn a new language — whether it’s for travel, work, or study abroad. This gives Duolingo a naturally global audience.
Challenges in the Duolingo Model
No business model is perfect. Here are a few realistic challenges Duolingo faces:
1. Limited Conversion Rate
Only a small percentage of users convert from free to paid. The rest continue to use the free version with ads.
2. Retaining Subscribers
Even if users pay once, maintaining long-term subscriptions is tough. People often lose motivation to learn consistently.
3. Rising Costs
As Duolingo integrates AI features like GPT-powered lessons, costs for technology and development are increasing.
4. Competition
The language learning market is crowded — from apps like Babbel and Busuu to YouTube creators and online tutors.
5. Regional Pricing
Markets like India or Latin America have high user potential but low purchasing power, which can limit revenue growth.
Lessons Businesses Can Learn from Duolingo
Whether you’re running a SaaS product, an app, or an online service, Duolingo’s success offers valuable lessons:
1. Start Free, Build Trust
Offering value for free builds massive reach and user trust. Once people love your product, some will happily pay for convenience or extra features.
2. Use Gamification Smartly
Badges, points, streaks — these are not just for fun. They create emotional attachment, which drives retention and monetisation.
3. Diversify Revenue Streams
Don’t rely on one income source. Duolingo earns from four different streams — which keeps it stable even if one dips.
4. Keep Innovating
Adding AI-driven features keeps the premium tier valuable and attracts more subscribers.
5. Make Learning (or Using) Fun
The more enjoyable your product experience, the easier it becomes to retain users and justify paid plans.
Duolingo’s Future Outlook
Looking ahead, Duolingo’s revenue model seems positioned for even more growth.
Here’s what’s likely to shape its future:
- AI-Powered Personalisation: Duolingo Max is already using AI to offer real-time conversation practice and feedback. This could become a major upgrade driver.
- More Global Expansion: Especially in India, Southeast Asia, and Latin America where language learning is in high demand.
- Growing Certification Business: As more universities accept the Duolingo English Test, this stream could become a major player in the global education testing industry.
- Higher ARPU (Average Revenue per User): As premium features improve, users may pay higher prices or upgrade tiers.
However, to sustain growth, Duolingo must balance monetisation with its core promise — making education free and accessible for all.
My Personal Take
I genuinely admire Duolingo’s balance between accessibility and profitability.
They’ve managed to make learning fun while still running a serious business — that’s not easy.
The app’s gamified approach is something every startup can learn from. It doesn’t just teach languages — it teaches how to design habits that keep users engaged.
From a marketer’s lens, I find their freemium funnel brilliantly structured. And from a user’s perspective, it still feels fair — you can learn for free, or pay if you want comfort and extra features.
If you’re building a digital product, there’s a lot you can borrow from Duolingo’s model — especially the idea that education + engagement = growth.
Conclusion
Duolingo’s revenue model is a great example of how free apps can still build billion-dollar businesses.
It thrives on scale, smart upsells, and emotional engagement.
To sum it up:
- Free users fuel growth
- Paid users fuel profit
- Gamification fuels retention
That’s the real magic of Duolingo’s business model a perfect blend of fun and finance.
FAQs
Most of Duolingo’s revenue comes from paid subscriptions. Subscriptions contribute around 75–80% of total revenue, while advertising makes up roughly 7–10%.
In 2023, Duolingo earned about $404 million from subscriptions and around $50 million from ads. The remaining revenue came from its English proficiency test and other services.
This shows that Duolingo’s main business driver isn’t ads like many other free apps, but rather its growing base of paying users who choose Super Duolingo or Duolingo Max for an ad-free, more immersive experience.
Super Duolingo offers a premium experience beyond the free plan. It includes:
Completely ad-free learning.
Unlimited hearts, meaning users can keep learning even after making mistakes.
Offline access to lessons for when users don’t have internet.
Streak repair and streak freeze features.
Practice Hub to review weak skills.
A Family Plan for multiple users under one subscription.
Duolingo Max, the top-tier plan, includes everything in Super Duolingo plus AI-powered features such as:
“Explain My Answer”, which helps learners understand why they got something right or wrong.
“Roleplay” conversations that let users practice real-life scenarios with an AI tutor.
Enhanced, personalized feedback to make the experience feel more like a human tutor session.
While Super Duolingo focuses on removing limits and ads, Duolingo Max is designed for deeper learning with interactive AI-driven experiences.
The Duolingo English Test (DET) contributes roughly 7–8% of the company’s total revenue.
In 2023, the test generated around $41 million, and the figure has continued to grow steadily in 2024. The test is popular among students applying to universities abroad since it’s accepted by thousands of institutions globally.
Although it’s a smaller segment compared to subscriptions, it adds valuable diversification to Duolingo’s overall business model and positions the company strongly in the education testing market.
Duolingo’s revenue growth has been impressive and consistent:
From 2020 to 2024, Duolingo’s revenue has grown by more than 360%, driven by a steady rise in daily active users and a strong conversion rate from free to paid users. The company’s use of gamification, consistent app engagement, and expansion into new language courses have all contributed to this growth.
Main cost drivers:
Research and development: Duolingo invests heavily in AI-based learning features, app improvements, and new language courses.
Technology and infrastructure: Running the platform for millions of daily active users requires significant cloud and engineering costs.
Sales and marketing: Although Duolingo’s organic growth is strong, it still invests in brand campaigns and partnerships.
AI integration costs: Duolingo Max’s generative AI features (powered by models like GPT-4) add compute and integration expenses.
Profitability drivers:
Subscription growth: Paid users have high margins once they subscribe since app maintenance costs don’t rise proportionally.
Free-to-paid conversion: Converting active free users into paying ones is one of the biggest revenue levers.
High retention rates: Streaks, gamification, and progress tracking encourage users to stay engaged longer.
Scalability: The same content and infrastructure support millions of users, improving operating leverage.
Global reach: Expanding into new countries and adding new languages drives more paying users.
Overall, Duolingo’s profitability depends on balancing the cost of innovation (especially AI and content development) with its growing, high-margin subscription base.
