App Store Fees Explained: What Apple & Google Actually Take

Last updated May 2025  ·  7 min read

You built an app. It's live. People are downloading it. But when you check your developer payout, the number is a lot smaller than you expected. Sound familiar?

That's the App Store tax — the percentage Apple, Google, and other platforms take off the top of every sale. It's not hidden, but the rules are more complicated than they first appear. This guide breaks it all down in plain English.

How App Store Fees Work

When someone buys your app, the platform processes the payment, handles taxes in many regions, and pays you the remainder. The fee they keep is called the store commission — sometimes also called a "revenue share" or "platform cut."

The standard rate for most major app stores has historically been 30%. That means for every $10 your app earns, you get $7 and the platform keeps $3. This 30% rule was standard across almost every major store for over a decade.

Starting around 2020–2021, that started to change. Multiple platforms cut their rates — especially for smaller developers and subscription apps. The result is a more complex fee landscape that can actually work in your favor if you know the rules.

Platform-by-Platform Breakdown

Here's exactly what each major platform charges as of 2025:

The standout here is Microsoft Store — they flipped the script in 2022, dropping their standard rate to 15% (and 12% for games). That's dramatically lower than Apple or Google. If your app runs on Windows, it's worth factoring this in.

The Small Business Program: Getting to 15%

Apple's Small Business Program launched in 2021. If your app earns less than $1 million per year across all of your apps and in-app purchases on the App Store, you qualify for a 15% commission rate instead of 30%. You have to apply — it's not automatic — but it's free and most indie developers qualify.

Once you exceed $1 million in a calendar year, you return to the 30% rate for the remainder of that year. The following January, if you're back under the threshold, you're eligible to re-enroll.

Google Play's approach is different — and more generous. Since November 2021, every developer pays just 15% on their first $1 million in annual revenue automatically. No application required. You only hit the 30% rate after crossing $1M in a given year.

Subscription Fees — The Rules Are Different

Subscription apps have their own fee structure, and it's one of the biggest reasons many developers have shifted away from one-time pricing.

Apple's Subscription Rate

For the first 12 months of a subscription, Apple takes the standard 30% (or 15% if you're in the Small Business Program). After a subscriber has been active for 12 consecutive months, Apple's cut drops permanently to 15% — regardless of your program status.

This creates a real incentive to keep users subscribed long-term. A user who stays for 2+ years is significantly more profitable than the fee structure suggests on day one.

Google Play's Subscription Rate

Google charges 15% for all subscription revenue, even in year one. Combined with the automatic 15% rate on the first $1M of all revenue, subscription developers on Google Play are paying some of the lowest store fees in the industry.

Year 2+ Math

Here's a concrete example: A $5.99/month subscriber who stays for 24 months on iOS. In year one, Apple keeps 30% (or 15% with SBP). In year two, Apple keeps 15%. The subscriber's total revenue to you is meaningfully higher in the second year — even though the price didn't change.

The Real Math — What You Actually Take Home

Let's run through some concrete examples. Say you have a $4.99 app with 500 monthly downloads on the iOS App Store:

Gross revenue: $4.99 × 500 = $2,495/month
At 30%: Store keeps $748.50. You keep $1,746.50/month ($20,958/year)
At 15% (SBP): Store keeps $374.25. You keep $2,120.75/month ($25,449/year)

The difference between 30% and 15% at that volume is over $4,400 per year. That's not nothing — especially for an indie developer.

Pricing Strategies That Work With Store Fees

Use App Store Price Tiers, Not Arbitrary Numbers

Apple and Google use price tiers — standardized price points that are automatically converted to local currencies. Common tiers: $0.99, $1.99, $2.99, $3.99, $4.99, $6.99, $9.99, $12.99, and so on. Pricing at $4.97 doesn't save you anything — it just looks odd. Stick to the tiers.

Subscriptions Beat One-Time for Long-Term Revenue

A $4.99 one-time app earns you roughly $3.49–$4.24 per download (depending on fee rate) — once, forever. A $1.99/month subscription earns you $1.39–$1.69 per month. After 3 months, the subscriber has already generated more revenue. After 12 months, they've generated 3× more than the one-time buyer.

The catch is churn. Most subscription apps lose 5–15% of subscribers each month. Use the Subscription vs Paid calculator to find the crossover point for your specific price and churn rate.

Consider Multi-Platform Distribution

If your app can run on Windows, listing it on the Microsoft Store alongside the App Store and Google Play makes sense — not just for additional reach, but because Microsoft's 15% fee means more margin per sale. Samsung Galaxy Store is another low-friction addition for Android apps.

Free + IAP vs Paid

In-app purchases carry the same fee rate as upfront purchases on iOS and Google Play (30% standard, 15% reduced). But free apps with optional IAP tend to get dramatically more downloads — which can offset the fee math. The right model depends entirely on your category and user intent.

Frequently Asked Questions

Do app store fees include taxes?

In many regions, yes. Apple and Google handle tax collection and remittance in most markets — they collect the tax from the buyer and remit it to local governments. Your revenue share is calculated on the pre-tax amount, so taxes generally don't reduce your payout further. Check platform documentation for your specific markets.

What about refunds?

If a user gets a refund, both the gross revenue and the store fee are reversed. You don't keep the fee portion — you simply lose the full sale as if it never happened. High refund rates can significantly affect your net payouts.

Are there other fees beyond the commission?

Apple charges an annual $99 developer program fee (or $299 for enterprise). Google charges a one-time $25 registration fee. These are separate from the per-sale commissions and are fixed regardless of revenue.

When does Apple/Google pay out?

Apple pays out approximately 45 days after the end of each month, once you hit a minimum threshold (typically $10 in most countries). Google Play pays out monthly, usually around the 15th of the following month.