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App Store Small Business Program: the 15% rate, explained

If your App Store proceeds were under $1 million last year, Apple takes 15% instead of 30%, but only once you enrol. Here is who qualifies, how the threshold is counted, when the rate starts and what it is worth.

Checked against Apple's program page on

The short version

  • Rate: 15% on paid apps and in-app purchases, instead of 30%.
  • Who: developers with up to $1 million in proceeds in the previous calendar year, and new developers.
  • How: the Account Holder enrols on Apple's site and lists any associated developer accounts. It is not automatic.
  • When: 15 days after the end of the Apple fiscal month in which you are approved.
  • If you grow past $1 million: the standard rate applies for the rest of that calendar year.

How the $1 million is counted

The threshold is on proceeds, what Apple pays you after its commission and certain taxes and adjustments, converted to US dollars. It is not what customers pay. To stay in the program, your proceeds must be $1 million or less in the previous calendar year and stay at or under $1 million in the current one.

Proceeds from associated developer accounts count together. Apple treats accounts as associated when one party holds more than 50% of the other or has the final say over it, so splitting apps across company accounts you control doesn't reset the count. When an app is transferred, its proceeds for the year count for both the account that sends it and the one that receives it.

How to enrol

  1. Be the Account Holder of your Apple Developer Program membership.
  2. Accept the latest Paid Apps agreement in App Store Connect.
  3. Fill in Apple's enrolment form, listing every associated developer account (name, Team ID, Account Holder email and how you are related).

The lower rate starts 15 days after the end of the Apple fiscal month in which your enrolment is approved. Apple's own example: approved on February 10, reduced commission from March 14. Enrol before a launch, not after it.

Subscriptions

On standard terms, Apple takes 30% of a subscriber's first paid year and 15% after it. In the program you pay 15% from the first payment, so the program matters most for apps whose subscribers churn within a year, and for monthly plans.

Outside the standard terms

Apps on Apple's alternative terms in the EU, and apps that link out to web purchases in the US, have different fee structures. Apple's program page lists a further reduced 10% commission for program members on the EU alternative terms. The figures on this page are for the standard App Store terms.

Questions developers ask

Who qualifies for the App Store Small Business Program?
Developers who earned up to $1 million in App Store proceeds in the previous calendar year, counted together with any associated developer accounts, and developers new to the App Store. You have to enrol; the reduced rate is not applied automatically.
What does the Small Business Program change?
Apple's commission on paid apps and in-app purchases drops from 30% to 15%. For subscriptions, the standard rate already falls to 15% after a subscriber's first year; in the program it is 15% from the first payment.
What happens if I earn more than $1 million?
Once your proceeds pass $1 million in the current calendar year, the standard commission applies to your sales for the rest of that year. If your proceeds fall below $1 million in a later calendar year, you can qualify again the following year.
When does the 15% rate start?
Fifteen days after the end of the Apple fiscal month in which your enrolment is approved. Sales before that date are charged at the standard rate.
Is the $1 million threshold based on revenue or proceeds?
Proceeds: what Apple pays you after its commission and certain taxes and adjustments, converted to US dollars. A developer with $1.3 million in customer spend at the 30% rate has about $0.91 million in proceeds.

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