App Store revenue calculator: how it works
An iPhone app can earn from ads, from in-app purchases, from subscriptions or from the price of a paid app. Apple keeps a commission on everything sold through the App Store, but not on ads shown inside your app. This calculator adds up the income, takes off Apple's commission and shows what is left each month and year.
Pick what your app sells, then start from monthly downloads or from daily active users (DAU). For subscriptions it estimates new subscribers from the share of downloads that start paying, and keeps them until they cancel at your monthly churn rate. Choose whether you are in the App Store Small Business Program, which cuts the commission from 30% to 15%.
Formula and assumptions
Formula
DAU = monthly downloads × retention %Subscribers (steady state) = new subscribers per month ÷ monthly churn; gross = subscribers × priceIAP gross = DAU ÷ stickiness × buyer % × purchases × price; paid app = downloads × priceCommission: 15% (Small Business) up to $1M of proceeds a year, otherwise 30% (subscriptions 30% year one, 15% after)Net monthly revenue = ad revenue + (store gross ÷ (1 + tax %)) × (1 − commission)
Assumptions
- Apple takes 30% of paid apps and in-app purchases, and 15% if you are in the App Store Small Business Program (proceeds of $1M or less in the previous calendar year). Subscriptions are 30% in the first year of a subscriber's paid service and 15% after that. Rules read from Apple's developer site on the date shown below; Apple can change them.
- The $1M Small Business threshold is on proceeds (what you keep after commission). The calculator applies 15% up to $1M of proceeds a year, and the standard rates on revenue above that. Apple checks this by calendar year and by your whole developer group; this is a simple yearly estimate.
- Subscriptions: new subscribers per month = downloads × trial-to-paid share (default 2%); subscribers stay until they cancel (default 15% a month). The share past their first year is (1 − churn)^12, and that share is charged the 15% rate outside the programme.
- In-app purchases: buyers = monthly active users × buyer share (default 2% a month). Monthly active users = DAU ÷ 20% (an Earnlitix assumption). DAU = downloads × retention (default 5.3%).
- Ad revenue reuses the Play Store eCPM benchmarks, because no reliable iOS-specific split was found. iOS eCPMs are often higher, so this is cautious. Ads are not charged Apple commission.
- Sales tax, VAT or GST inside your price is removed before Apple's commission if you enter it. Apple's currency conversion, refunds and the Apple Developer Program fee are not modelled.
Worked example
20,000 downloads a month, subscription app at $9.99 a month
- New subscribers each month = 20,000 × 2% = 400.
- With 15% of subscribers cancelling each month, the steady number of subscribers is 400 ÷ 0.15 = about 2,667.
- Gross subscription revenue = 2,667 × $9.99 = about $26,640 a month, or $319,680 a year, under the $1M threshold.
- In the Small Business Program the commission is 15%: $3,996, leaving about $22,644 a month.
- Outside the programme about 14% of subscribers are past their first year (15% commission) and the rest pay 30%, a blended 27.9%: about $7,424 of commission, leaving about $19,216 a month.
Result: About $22,644 a month ($271,728 a year) in the Small Business Program, versus about $19,216 a month ($230,597 a year) at standard rates. The programme is worth about $3,400 a month at this size.
Limitations
- Apple's rules can change, and the Small Business Program has conditions: you must enrol, associated developer accounts are counted together, and the $1M proceeds limit is checked by calendar year. This calculator treats it as a simple yearly threshold.
- Conversion, churn, retention and buyer shares are benchmarks and assumptions, and your app will differ widely. Subscription numbers assume steady state, which a new app takes months to reach. Refunds, free trials, price changes and currency conversion are not modelled.
- Ad revenue reuses Android AdMob eCPM benchmarks because no reliable iOS-specific split was found. Real iOS eCPMs are often higher, but Apple's App Tracking Transparency prompt can reduce them. Earnings are before your own income tax.