Gross Revenue

Gross revenue is the total amount an app earns from all sources before deductions. This includes income from in-app purchases, subscriptions, upfront app sales, and advertising. As the top-line figure, it serves as the starting point for calculating profitability. However, gross revenue shows scale without reflecting how much the developer takes home.

What Gets Deducted

Several costs are subtracted from gross revenue to reach net revenue. App store commissions are the largest deduction, with Apple and Google taking 15% to 30% depending on developer size and revenue type. Taxes - including VAT and sales tax - vary by region and grow substantial for apps with a global user base. Refunds and chargebacks further shrink actual income. Combined, these deductions can strip 30% to 50% or more from the gross figure.

Using Gross Revenue Effectively

Gross revenue works well for tracking growth trends and comparing performance across periods. However, basing business decisions on this number alone can mislead. Pair it with net revenue analysis when evaluating profitability, setting budgets, or calculating metrics like Lifetime Value (LTV) and Return on Ad Spend (ROAS).