TL;DR
Every sale goes through the store, and the store takes a cut before you see a dollar. The default is 30 percent, but the small-business program drops it to 15 percent if you earn under a million a year, so you keep 85 percent. Plan around what you actually keep, not the price a user pays.
When a user pays for your app, that money does not land in your account at full value. Apple and Google process the payment and take a cut first. This is the price of the built-in audience and payment system they provide, and it is not optional for in-app purchases. Understanding the cut is the difference between planning around real revenue and being surprised by a smaller payout than you expected.
How much the store actually takes
The default cut is 30 percent, so a $9 subscription would net you $6.30 at the standard rate. But most beginners qualify for the small-business program: if you earn under a million dollars a year, Apple and Google drop the cut to 15 percent, and you keep 85 percent. That same $9 subscription then nets you closer to $7.65. Enrolling in that program is one of the highest-value things you can do early.
What the cut means for your numbers
- Standard cut is 30 percent, so you keep 70 percent of each sale by default.
- Small-business program cuts it to 15 percent, so you keep 85 percent if you earn under a million a year.
- A $9 monthly subscription nets around $7.65 on the small-business program, not the full $9.
- Your real revenue is always the price minus the cut, and any per-user costs you carry on top of that.
Price around what you keep
Because the cut comes off the top, you should always plan around net revenue, not the sticker. If you need to keep a certain amount per subscriber to cover your costs and make a profit, work backward from the cut to set your price. Building your whole plan on the full sticker price is how builders end up disappointed when the payout lands 15 or 30 percent lighter than they imagined.
When the cut does and does not apply
The store cut applies to digital goods sold inside your app: subscriptions, unlocks, and in-app purchases. It generally does not apply to physical goods or services delivered outside the app, which use normal payment processors instead. For the apps most beginners build, though, the revenue is digital, so the store cut is a fact of life you plan around rather than avoid.
Make peace with the cut
The cut can feel steep until you remember what you get for it: Apple's 2.5 billion devices and 850 million weekly App Store visitors, Google Play's 2 billion-plus devices, secure payments, and a trusted place people already shop for apps. You are not building an audience from scratch or handling payment security yourself. Priced right, keeping 85 percent of sales from that kind of reach is a very good deal.
Common questions
How much do Apple and Google take?
The default cut is 30 percent. But if you earn under a million dollars a year, the small-business program drops it to 15 percent, so you keep 85 percent. Most new builders qualify, so a $9 subscription nets around $7.65 rather than the full sticker price.
What is the small-business program?
It is Apple's and Google's reduced-fee tier for smaller developers. If you earn under a million dollars a year, you pay 15 percent instead of 30 percent, keeping 85 percent of revenue. Enroll as soon as your developer account is set up so you never overpay on your first sales.
Does the store cut apply to everything I sell?
It applies to digital goods sold inside your app, like subscriptions, unlocks, and in-app purchases. It generally does not apply to physical goods or services delivered outside the app, which use normal payment processors. For most beginner apps, the revenue is digital, so the cut applies.
How should the cut affect my pricing?
Plan around net revenue, not the sticker. If you need to keep a certain amount per subscriber to cover costs and profit, work backward from the cut to set your price. Building on the full sticker price leads to disappointment when the payout lands 15 or 30 percent lighter.
Can I avoid the store cut?
Not for digital in-app purchases; using the store's payment system is required for those. You can sell physical goods or outside services through other processors, but for the digital apps most beginners build, the cut is a fact of life you price around rather than avoid.
Is the store cut worth it?
For most builders, yes. In exchange you get Apple's 2.5 billion devices and 850 million weekly visitors, Google Play's 2 billion-plus devices, secure payments, and a trusted storefront people already use. Keeping 85 percent of sales from that reach, priced right, is a strong deal.
Keep going
Plan around what you keep, not the sticker price
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