A complete breakdown of every App Store fee, tier, and scenario. Plus the hidden costs that never appear on an invoice, and what the post-Epic ruling means for your net revenue.
Most developers know about Apple's App Store commission, but less know the true extent of the costs, why the number they pay might change overnight, or how they can reduce their fees compliantly. This guide helps fix that.
Below you’ll find a breakdown of every fee, every tier, and every scenario. We also detail the costs no invoice will show you and outline how you can improve your net proceeds by shifting some revenue to the web.
How much does it cost to sell on the App Store?
The figure that gets quoted most often is 30%, the standard commission Apple takes on in-app purchases and subscriptions, but it is more nuanced than a flat rate.
Here’s a breakdown of fees as a percentage, based on the relevant scenario:
Scenario | Fee |
|---|---|
Standard App Store IAP | 30% |
Small Business Program (Under $1M ARR) | 15% |
auto renewable subscriptions, year 2 (SBP + non-SBP) | 15% |
Apple Developer Program Membership | $99/year |
Apple developer program | $99 |
Physical goods/Reader apps | 0% |
The Small Business Program
Developers earning under $1M annually in proceeds qualify for the Small Business Program. The program cuts the commission to 15%.
Proceeds are net of Apple's commission and adjustments rather than gross revenue and the threshold applies to cumulative proceeds across all affiliated developer accounts.
Spreading revenue across multiple apps does not keep you below the limit. If you cross $1M in any calendar year and every sale from that point forward reverts to 30% for the rest of that year. Revenue earned at 15% is not clawed back, but there is a sharp cliff developers should be aware of.
What are the hidden costs of the app store?
The commission Apple takes is the visible part, but not the extent of costs. What’s less visible is what you give up by letting Apple mediate every transaction in their Walled Garden. They include:
- Limited control of the customer relationship
- Limited customer data
- Limited pricing experimentation
- Extended payouts
How can developers reduce their app store fees?
How are leading apps reducing their app store fees? Web monetization refers to apps distributing or monetizing (or both) on the web and has quietly become a core lever many top apps pull to grow faster and smarter.
Instead of paying the app store 15% or 30% on every transaction, developers often opt for a solution that handles everything Apple did on the backend - tax management, payment localization, chargeback handling and fraud detection - using a Merchant of Record (like Paddle). Here’s the reality of what that fee difference looks like based on 4 different revenue scenarios.
*Table does not account for any change in conversion, or increases in customer LTV apps often see on the web
Scenario | Fee | What you keep |
|---|---|---|
Standard App Store IAP | 30% | $1,400,000 |
On the web | 5.5% | $1,890,000 |
Web2App
Web2App starts on the web. A user finds you through paid or organic search, pays via a web checkout, and is directed into the app. Apple never sees the transaction and you own the customer from the first click.
This works for international sellers and US sellers acquiring new users who have not yet touched the app.
App2Web
Until 2025, apps (excluding reader apps) who wanted to monetize on the web and reduce fees could only do so via Web2App. That was until the U.S. District ruled that Apple violated her 2021 injunction by continuing to restrict how developers inform users about alternative payment options. Get the full legal breakdown here.
The ruling opened External Payments, or App2Web, wide open for developers selling into the US. App2Web starts in the app. A user hits your paywall, taps an external link, completes the purchase on a web checkout, and returns with access unlocked. This is a monetization play for existing app users, not a new acquisition channel.
Ready to start experimenting with App2Web today?
Is App2Web safe?
Following the Epic v. Apple ruling back in 2025, App2Web was technically allowed, but many developers questioned whether or not Apple would adhere in good faith.
A year on things are less opaque. Brands like Runna, Codeway and HubX are running external payments safely and have faced no repercussions, ranking in the Apple charts while shifting significant revenue to the web.
When Cal AI, a leading calorie tracking app, was pulled from the app store back in April, some developers assumed this was the start of a push back from Apple. But the saga actually helped further define the app store’s red lines. After being reinstated the industry became clearer on Apple’s non-negotiable's.
ARR | Scenario | App Store Fee | You keep | vs Web + MoR |
|---|---|---|---|---|
$500K | Small Business Program | 15% | $425,000 | $472,500 |
$2M | Standard | 30% | $1,400,000 | $1,890,000 |
$5M | Standard | 30% | $3,500,000 | $4,725,000 |
What can developers do now to reduce their app store fees?
What should developers not already running monetization on the web do today? The right answer depends on where you are.
Under $1M ARR
If you're below the threshold, you're likely on the Small Business Program at 15% - a reasonable position. But the cliff doesn't announce itself. Model your net proceeds at $1.1M, $1.5M, and $2M across three scenarios: App Store only, App Store plus App2Web, and a split between the two.
The numbers will show you how much each scenario costs in Apple fees and when a web motion is actually worth building. They will also show something less obvious: a web motion doesn't just reduce your fee rate above $1M. It can keep your App Store proceeds below the threshold entirely.
Over $1M ARR
You are likely already paying the full 30% commission. The question is how much of the 20 to 40% net proceeds improvement is available to your specific business. Run the numbers against your ARR, your install-to-paid ratio, your acquisition spend, and your chargeback rate.
Web monetization isn’t a silver bullet
A touch of nuance before you start experimenting: no matter what you think of Apple's fees, you'll probably always need the App Store to some degree. Nothing rivals its distribution and Apple Features can make an app overnight.
Apple’s fee structure has frustrated a lot of developers, and for most, web monetization makes real sense. But the App Store solves a lot of backend complexity for what you pay, and its 800 million weekly users aren't going anywhere.
Run web monetization compliantly, stay on top of payment management, tax, chargebacks and fraud, and find what actually works for your business.
Grow faster in 2026
As a Merchant of Record, Paddle handles everything the app store handles but on the web. From tax compliance through to payment orchestration and smart customer retention flows.
Paddle's partnership with Helium is the only purpose-built App2Web solution that combines AI-native paywall optimization with a fully integrated Merchant of Record, so mobile sellers can move more revenue to the web with confidence, protect conversion, and focus on building a product customers love.
To learn more about the App2Web, Paddle and Helium, click here.
