Net Revenue

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

Key Deductions

The largest deduction for most 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 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 (LTV), Return on Ad Spend (ROAS), or payback period, using gross figures overstates performance and can lead to unprofitable acquisition decisions. A campaign that looks profitable on gross numbers may 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.