Your effective rate is never the headline rate
Between reduced subscription tiers, small-business programs, and regional rules, the blended commission most apps actually pay sits several points below 30%. Pull three months of payout statements, divide net proceeds by ex-tax billings, and use that as your commission input.
The four leaks after commission
Commission gets the attention; these quietly cost as much.
- • VAT and sales tax inflate gross billings that were never revenue.
- • Refunds and chargebacks, which also claw back the commission asymmetrically in some regions.
- • FX conversion when you bill globally and bank in one currency.
- • Payout timing — cash arriving 30–45 days later has a real cost when you're funding UA.
Web checkout isn't free money
External billing cuts the platform fee but adds processing, tax compliance, and a conversion penalty for sending users out of the app. Model the fee saving here, then haircut it by your measured drop-off before deciding.
Related guides
Long-form playbooks on the same topic, written by the RevenueLab editorial team.
FAQ
Is the reduced subscription rate automatic?
It depends on the program and how long a subscriber has been paying. Check your own statements rather than assuming — the split between rates is the biggest single swing in this model.
Should VAT be in gross revenue?
If your dashboard shows tax-inclusive billings, yes — and this calculator will strip it back out. If it already reports ex-tax, set the tax rate to zero.
How do refunds interact with commission?
Treatment varies by store and region; some return the commission, some don't. The conservative approach used here is to net refunds off the top.
What keep rate should I plan around?
For a global in-app-only consumer app, 55%–65% of billed revenue is a realistic planning figure once tax, refunds, and FX are counted.
How this calculator is built
Independently maintained
Written by Sam Doshi and the RevenueLab editorial team. We don't sell the data feeds this tool is built on.
Sourced from primary data
Benchmarks come from public AdSense / Stripe / IRS disclosures and reader-submitted data — never third-party "$X per view" claims. Full methodology.
Last editorial review
Reviewed on a rolling quarterly cycle. Dated reviews are published on the methodology record for each calculator.
Editorial standards
See our editorial policy and disclaimer. Results are estimates, not advice.