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Apple's cut, explained: why your $9.99 app pays you $6-ish
The financial model in your head is "price × downloads". The one your bank sees is price − tax − Apple's commission ± currency. The single most expensive oversight in indie dev: the 15% Small Business Program requires an application — eligible developers sit on the 30% rate for years because nobody told them there's a form.
The commission tiers
- 30% — the default. The number everyone knows, and what you pay if you never apply for anything.
- 15% — Small Business Program. For developers under $1M in proceeds the previous calendar year. Nearly every indie qualifies. Enrollment is a form in App Store Connect, not automatic — go check yours before reading further; this guide will still be here.
- 15% — subscriptions after year one. Once a subscriber crosses one paid year, that subscription's commission drops to 15% even outside the program. Retention literally raises your margin — one more reason churn is the quiet killer.
Taxes come off first
In many storefronts — most of Europe among them — VAT is inside the customer price and comes out before the split. A €9.99 sale in a 25% VAT country is roughly €8 of taxable base before Apple's percentage even enters. This is the gap that surprises people modeling "price minus 30": by the proceeds line, a $9.99 sticker lands anywhere from about $6 to $8.49 depending on country, program status and tax. Add currency conversion into your payout currency, and per-country proceeds for the same sticker price can differ by a third.
Modeling it honestly
- Model from proceeds, never price. App Store Connect's proceeds column already contains the whole story — tax, commission, currency. It is the only number that predicts your payout.
- Quick sanity math: at 15%, roughly 70–85% of sticker survives depending on local tax; at 30%, roughly 55–70%. Directional, but it keeps spreadsheet dreams within a postcode of reality.
- Watch proceeds per install, not revenue per install. Especially when comparing countries — high-sticker markets with heavy VAT can pay less than modest-sticker markets without it (a wrinkle that localization planning should price in).
- Subscriptions: retention is margin. The year-two 15% means your oldest subscribers are your most profitable — churn fights you twice (see watching deletions).
The funnel ends at proceeds, so measure to proceeds
Downloads are applause; proceeds are payment. A funnel that stops at installs is a story missing its ending — the whole point of watching Impressions → Installs → Purchases is that the last stage is money, stated the way Apple will actually pay it. FunnelHound reads proceeds straight from App Store Connect, so paywall experiments and ASO changes get judged in the only unit that compounds.
Watch the number the bank agrees with
FunnelHound's funnel runs all the way to proceeds — impressions to installs to actual money, from App Store Connect.
Get FunnelHoundData notes: commission tiers and Small Business Program terms per Apple's published policies as of 2026; regional regulation (notably in the EU) has produced alternative fee structures beyond this guide's scope. Tax treatment varies by storefront — the proceeds column in App Store Connect is authoritative for your mix. Not tax advice.