Net Revenue

Net revenue is the actual income a developer receives after all deductions have been applied to gross revenue. It reflects the real money available to cover operating expenses, fund growth, and generate profit. For mobile apps, the gap between gross and net revenue can be substantial due to platform fees, making net revenue the more accurate measure of financial health.

Key Deductions

The largest deduction for most app developers is the app store commission. Apple and Google both charge up to 30% on standard transactions, though both offer reduced rates of 15% for small businesses or for subscriptions after the first year. Regional taxes such as VAT, GST, and sales tax are collected and remitted by the stores in many jurisdictions but still reduce the amount paid to developers. Refunds, whether initiated by users or forced by store policies, and chargebacks from disputed credit card transactions are also subtracted.

Why Net Revenue Is Critical

All meaningful financial calculations should use net revenue rather than gross revenue. When computing Lifetime Value, Return on Ad Spend, or payback period, using gross figures overstates performance and can lead to unprofitable acquisition decisions. A campaign that looks profitable on gross revenue may actually lose money once store commissions and taxes are factored in. Building dashboards and reports around net revenue ensures your team makes decisions based on real economics.