Most builders start with the headline number: Apple takes 30%. But that framing is incomplete. The actual commission structure is more nuanced, and misunderstanding it can affect pricing, margins, and whether the App Store fits your business at all.
This article breaks down how Apple makes money from your app, what you may owe at each revenue level, and how to choose a monetization model that works for your business. If you are a solopreneur or small agency building apps, this is the financial foundation you need before you set a single price point. Since 2008, developers have collectively earned $550 billion through the App Store, and understanding the fee structure shapes your margins from day one.
Your commission rate is probably 15%, not 30%
For many small developers, the headline 30% rate is not the rate that actually applies. Apple's standard commission on digital goods sold through the App Store is typically 30%, though some categories such as long-term subscriptions may have different rates. The App Store Small Business Program cuts the commission to 15% for developers earning $1 million or less in proceeds during the prior calendar year.
One detail worth flagging: Apple measures that threshold against proceeds, not gross revenue. Eligibility is based on $1 million proceeds, which changes how closely you need to track your numbers.
What the 15% rate covers
The reduced rate applies broadly. If you qualify, the same lower commission carries across the main ways small apps make money.
Under the Small Business Program, the 15% rate applies across these App Store monetization paths:
- Paid app downloads
- In-app purchases
- Subscriptions at every billing cycle, with no Year 1 versus Year 2 split
In practice, that keeps your fee structure simpler while you are still below the threshold.
New developers can qualify for the program, but enrollment is not automatic. You must enroll through App Store Connect to receive the reduced rate.
If you own multiple developer accounts, Apple combines proceeds when calculating eligibility. You can not split revenue across accounts to stay under the threshold.
How Apple commission applies to each monetization model
The fee percentage only tells part of the story. Each revenue model triggers Apple commission differently, and that changes which model fits your app.
Paid apps and in-app purchases
A paid app charges users once at download. In-app purchases (IAPs) let you sell additional content or features inside the app. Both follow the same commission rules: 15% under the Small Business Program, 30% at standard rates.
There are four IAP types:
- Consumable: used once and repurchasable (game currency, credits)
- Non-consumable: permanent one-time purchase (feature unlocks)
- Auto-renewable subscriptions: recurring charges until cancelled
- Non-renewing subscriptions: fixed-duration access without auto-renewal
In most cases, if your app sells digital goods, you must use Apple IAP system. External payment workarounds for digital goods can get your app rejected.
Advertising and physical goods
Apple collects zero commission on in-app advertising revenue and physical goods sold through your app. If your app sells physical products or runs ads through third-party networks, those revenue streams are entirely yours. That distinction is worth modeling if your app mixes software revenue with commerce or ads.
External payment links in the US
Developers can now link to outside payments within iOS apps in the US storefront. If you route US users to your website to complete a subscription purchase, the transaction occurs outside Apple in-app purchase system. You will need the StoreKit External Purchase Link Entitlement. The tradeoff: lower dependence on in-app purchase fees, but more friction in the buying flow.
Why subscriptions deserve special attention
For developers above the Small Business Program threshold, subscriptions use a two-tier commission structure that rewards retention. Apple takes 30% during the first 12 months of paid service, then drops to 15% after Year 1. The paid service days count, not calendar months. Free trials do not count toward that total. If a subscriber lapses for 60 days, the clock resets.
For Small Business Program members, this two-tier structure does not apply. You pay 15% from the first charge through every subsequent billing cycle, which is a meaningful advantage when you are building early traction.
The practical takeaway: retention reduces your effective commission rate once subscribers stay long enough to move past the higher tier. That math compounds quickly as your subscriber base grows.
Apple also provides tools that help with retention, including configurable free trial periods, billing grace periods, and Family Sharing.
Regulatory changes reshaping App Store economics
Regulatory pressure, primarily in the EU, is reshaping the commission landscape. If you are building for European users, these changes require careful planning.
EU alternative business terms
The EU Digital Markets Act requires Apple to allow alternative app distribution and payment processing. Developers can opt into alternative business terms with reduced commission rates: 17% App Store fee plus 3% payment processing for standard developers, or 10% plus 3% for Small Business Program members.
Apple also introduced the Core Technology Commission (CTC) starting January 1, 2026, a commission on digital goods sold through apps distributed from the App Store, Web Distribution, or alternative marketplaces.
Developers earning less than €10 million in global revenue receive a 3-year free on-ramp from the Core Technology Fee. For many small builders, that may remove immediate risk. For developers above that threshold, the math needs modeling before opting in. Staying on existing terms may be simpler depending on your revenue mix.
What indie builders actually earn on the App Store
The commission structure lands differently when you see real revenue numbers. These figures come from founders who shared their earnings publicly, and while they are anecdotal, they show the range of outcomes small builders have reported.
One solo developer built a habit tracking app from zero to $1K MRR in 8 months. After dropping to $28 MRR due to onboarding issues, they recovered by adding purchasing power parity pricing and building in public on X.
Another builder took a portfolio approach, shipping 30 MVPs instead of polishing a single app. The result was $22K per month across the portfolio, driven by App Store search visibility and early organic discovery after launch.
One of the most transparent public examples comes from a developer who reached $60.1K in December 2025, explicitly stated as net figures after Apple commission. He rebuilt from scratch 3 times after Apple froze his developer account, then built across both iOS and Android as protection against platform risk.
That last point is worth sitting with. Platform risk is real. Building a distribution channel you own, whether that is a social audience or an email list, protects you from any single platform decision.
Ship your app with the right revenue model
Your commission rate, monetization model, and platform choice are business decisions that compound over time. A difference in commission on a subscription app can change your break-even math, pricing, and reinvestment capacity.
Start by enrolling in the Small Business Program if you have not already. Choose a monetization model that matches how your users will experience value. If you are building a subscription app for US users, model the external payment link option against the conversion friction it introduces.
If you have the app idea but need a way to build it, build and ship with an AI app builder. Start with one revenue model from this breakdown, refine the app through a few rounds, set your price, and get your first version in front of paying users.
