Apple's 15% Rate: What the Small Business Program Is Actually Worth
The arithmetic on a real subscription price, the timing trap that costs founders money, and how it changes the web-versus-app pricing decision.
August 28, 2026 · 3 min read · By Wanilla Team
Quick answer
The Apple Small Business Program cuts Apple's commission from 30% to 15% for developers earning under $1 million a year across all their apps. Enrolling is free, takes minutes and applies from the first day of the following month, so for almost every indie or early-stage founder it is worth doing immediately. You lose the reduced rate for the following calendar year once you cross $1 million.
Apple's commission is the single biggest line item in an App Store business, and the Small Business Program halves it for almost every founder reading this. Here is who qualifies, what it is worth in cash, and the edge cases that catch people out.
What the programme does
The App Store Small Business Program reduces Apple's commission on paid apps and in-app purchase revenue from 30% to 15% for developers with under $1 million in proceeds in the prior calendar year. Proceeds means what Apple pays you after commission, aggregated across every app on the developer account and across every associated account.
What it is worth
| Annual gross sales | You keep at 30% | You keep at 15% | Difference |
|---|---|---|---|
| $50,000 | $35,000 | $42,500 | $7,500 |
| $200,000 | $140,000 | $170,000 | $30,000 |
| $500,000 | $350,000 | $425,000 | $75,000 |
For a subscription app, that difference usually decides whether paid acquisition works at all: it raises lifetime value by roughly 21% with no change to your product or pricing.
Who qualifies
- Under $1 million in proceeds across all your apps in the previous calendar year.
- New developers with no prior sales qualify immediately.
- Applies per developer account, including all apps on it and any associated developer accounts.
How to enrol
- Sign in to App Store Connect as the Account Holder.
- Open Business > Small Business Program and complete the enrolment form.
- Confirm the tax and banking details on the account are current.
- The reduced rate applies from the first day of the month after your enrolment is approved — it is not backdated, so enrol before you start selling.
The full step-by-step version, including screenshots of the App Store Connect flow, is in our Apple Small Business Program guide.
What happens if you cross $1 million
You move to 30% for the remainder of that calendar year, starting the month after you pass the threshold. If your proceeds fall back under $1 million in a later year, you can re-enrol for the following year. Crossing the line is not a penalty — it means the business is working — but it should be in your model before you plan a large paid acquisition push.
Things that catch founders out
- Multiple accounts. Associated developer accounts are aggregated. Splitting apps across accounts to stay under the threshold breaks the terms.
- Timing. Enrolment applies from the following month, so a launch in the same week as enrolment can pay 30% on its first cohort.
- Web sales are separate. Only App Store transactions are affected; Stripe revenue from your website is untouched — which is exactly why web-to-app funnels need modelling on both rates.
- You still need a working paywall. The rate is irrelevant if purchases are not implemented natively; see adding subscriptions before publishing.
So — is it worth it?
Yes, for effectively every founder under $1 million. Enrolment is free, takes about ten minutes, has no downside, and permanently improves unit economics. Do it before your first paid release rather than after.
If you would rather have the whole launch — native build, paywall, listing and enrolment guidance — handled for you, see the managed launch offer.
Where to go next
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