Gross Revenue

Gross revenue is the total amount of money an app earns from all revenue sources before any deductions are applied. This includes income from in-app purchases, subscriptions, upfront app sales, and advertising. It represents the top-line figure and is the starting point for calculating actual profitability. While gross revenue shows the scale of an app’s earnings, it does not reflect how much money the developer actually takes home.

What Gets Deducted

Several significant costs are subtracted from gross revenue to arrive at net revenue. App store commissions are the largest deduction, with Apple and Google taking 15% to 30% depending on the developer’s size and revenue type. Taxes, including VAT and sales tax, vary by region and can add up significantly for apps with a global user base. Refunds and chargebacks further reduce the actual income. These deductions can collectively remove 30% to 50% or more from the gross figure.

Using Gross Revenue Effectively

Gross revenue is useful for tracking overall growth trends and comparing performance across periods. However, making business decisions based solely on gross revenue can be misleading. Always pair it with net revenue analysis when evaluating profitability, setting budgets, or calculating metrics like LTV and ROAS.