How app store commissions work
Apple and Google take a percentage of every in-app purchase and subscription. The commission rate depends on the revenue type and which store, and both have recently added reduced-rate programmes for small businesses.
store commission = gross revenue x commission rate
commission rate (Apple):
one-time purchase: 30%
subscriptions year 1: 30%
subscriptions year 2+: 15% (all regions)
Small Business Programme (under $1M/year): 15% all types
commission rate (Google Play):
one-time purchase: 15% on the first $1M of revenue each year, 30% above that
subscriptions: 15% regardless of revenue
These are the standard rates that apply globally. Apple has different terminology for different regions (EU has alternative terms without the 30% year 1 rate for subscriptions; we do not detail them here but they exist). Google's rates are consistent worldwide.
A worked example
A meditation app earning $5,000 a month in subscriptions using both stores and the Apple Small Business Programme:
- 50% on Apple (Small Business, 15% commission) = $2,500 x 0.15 = $375 to Apple
- 50% on Google (15% commission) = $2,500 x 0.15 = $375 to Google
- Total commission = $750, you keep $4,250
- Annualized: $60,000 revenue, $9,000 commission, $51,000 to you
Without Small Business Programme qualification, that $375 Apple commission would be $750, cutting your annual revenue by $4,500. This is why eligibility matters at scale.
Apple Small Business Programme: when to apply
Apple offers a reduced 15% commission (down from 30%) for app businesses earning under $1M annually. You must enroll explicitly and have a good history on the App Store. Key points:
- Applies to all revenue types once enrolled (one-time purchases, subscriptions all years).
- The $1M threshold is per calendar year. Cross $1M in January and you lose the programme for the full year.
- One-time purchase revenue and subscription revenue both count toward the $1M limit.
- You can re-enroll the following year if you fall back below $1M.
Enroll in Apple Small Business Programme
Google Play: 15% up to $1M, then 30% on one-time purchases
Google Play charges 15% on the first $1M of revenue a developer earns each year and 30% on earnings above that, for one-time purchases. Automatically renewing subscriptions are 15% regardless of revenue. There is no enrolment step for the 15% tier; it applies by default. The EEA, UK and US have their own terms, which the source page covers. The calculator applies the 30% tier when your monthly revenue times twelve is above $1M.
Google Play service fees
Subscription year 1 vs year 2: why the jump on Apple
Apple charges 30% in year one (then 15% year two and beyond) to incentivise long-term retention over new user acquisition. The logic: in year one, the store invests in discovery and ranking; in year two, the customer is a repeat buyer and the marginal cost to Apple is lower.
This creates a planning challenge: a subscription app with 50% annual churn has half its cohort at 30% commission and half at 15%, averaging 22.5%. A subscription app with 20% annual churn (much longer lifetime) has better blended commission: year 1 is 30%, year 2-3 is 15%, so the lifetime average is closer to 18% to 20%.
This is one reason why retention directly impacts your profitability. Every 1% improvement in year-two retention improves your blended commission by roughly 0.5 percentage points, which is not trivial at scale.
Questions people ask
Do I pay VAT or GST to Apple and Google on top of their commission?
No. The commission percentage is applied to your revenue after applicable taxes. If you charge your customers VAT or GST, that amount is not subject to the app store commission. The calculator accounts for this if you enter a VAT rate.
Can I avoid app store commissions by processing payments outside the app?
On iOS, no. Apple requires in-app purchases for digital goods and subscriptions. You can offer discounts for payment outside the app, but you cannot bypass the commission entirely. On Android, Google Play is required for apps distributed through Google Play, but alternative stores (Samsung Galaxy Store, etc.) have different rates.
What if my app is free with ads or freemium?
Ad revenue is not subject to app store commissions. Only in-app purchases and subscriptions incur fees. A free app with a $2.99 IAP to remove ads pays 30% (or 15% on Google) only on the $2.99 transactions, not on ad impressions or other in-app events.
Does the Small Business Programme apply to in-app ads?
No. Ad networks handle their own commission structures independent of the app store. The 15% Small Business rate applies only to purchases and subscriptions processed through the app store.
What is the difference between Apple's one-time purchase and subscription rates?
Apple charges 30% on one-time purchases (digital games, tools, consumables) and 30% on subscriptions in year one, then drops to 15% year two and beyond. The drop is meant to reward long-term retention. Google charges 15% on everything, no distinction.
If I use Stripe or PayPal instead of in-app purchases, do I save the commission?
For iOS, no. Apple requires in-app purchase for digital goods and subscriptions within the app. You can offer Stripe payment for physical goods or services delivered outside the app. For Android, you can use alternative payment processors, but Google Play charging is required for apps on the Google Play store.
Sources
Last reviewed 11 September 2026. Formulas and benchmarks are published on the page so you can check them. This tool gives estimates, not quotes.
