Key Takeaway
If your App Store proceeds are under $1 million per year, you qualify for a 15% commission rate instead of the standard 30%. That means for every $10 sale, you keep $8.50 instead of $7.00. Over a year of steady revenue, the savings add up fast. Enrollment takes about five minutes and there is no downside to applying.
What Is the App Store Small Business Program?
Apple launched the App Store Small Business Program in January 2021 after years of developer pushback against the standard 30% commission. The program cuts the commission in half, from 30% to 15%, for developers who earn less than $1 million in annual proceeds.
The "proceeds" figure is important. It is calculated after Apple takes its commission and after certain taxes and adjustments. So the threshold is based on what lands in your bank account, not the gross sales figure your users paid. In practice, this means you need to be generating roughly $1.18 million in gross sales before you would exceed the $1 million proceeds threshold.
For the vast majority of indie iOS developers, this program is a no-brainer. According to industry data, fewer than 2% of all developers on the App Store cross the $1 million proceeds mark. If you are reading this guide, you almost certainly qualify.
15% vs 30%: How Much You Actually Save
The difference between 15% and 30% is enormous when you look at real numbers. Here is what it looks like at various revenue levels.
| Annual Gross Sales | At 30% Commission | At 15% Commission | Extra You Keep |
|---|---|---|---|
| $10,000 | $7,000 | $8,500 | +$1,500 |
| $50,000 | $35,000 | $42,500 | +$7,500 |
| $100,000 | $70,000 | $85,000 | +$15,000 |
| $500,000 | $350,000 | $425,000 | +$75,000 |
| $1,000,000 | $700,000 | $850,000 | +$150,000 |
At $100K in annual sales, the Small Business Program saves you $15,000 per year. That is a salary bump, a marketing budget, or seed money for your next app. At $500K, you are keeping an extra $75,000. This is not a minor optimization. It is the single most impactful financial decision most indie devs can make with five minutes of effort.
Eligibility Requirements
The rules are straightforward, but there are a few details that trip people up.
- Revenue threshold: Your total App Store proceeds must be under $1 million USD in the previous calendar year. Proceeds means your revenue after Apple's commission and certain taxes.
- Associated accounts matter: If you control multiple Apple Developer accounts, or if another entity controls your account, the proceeds from all associated accounts are combined when calculating the threshold. You cannot split revenue across multiple accounts to stay under $1M.
- Account Holder requirement: You must be the Account Holder of your Apple Developer Program membership (not just a team member).
- Paid Apps agreement: You must have accepted the latest version of Apple's Paid Apps agreement (Schedule 2) in App Store Connect.
- New developers qualify automatically: If you are new to the App Store and have no prior revenue, you are eligible from day one.
One common misconception: the threshold is based on proceeds, not gross revenue. Apple calculates proceeds as your sales minus Apple's commission and applicable taxes. This works in your favor because it raises the effective gross revenue ceiling.
How to Enroll: Step by Step
Enrollment is free and takes about five minutes. Here is the process.
- Go to the enrollment page. Visit
developer.apple.com/app-store/small-business-programand click "Enroll." Sign in with your Apple Developer account. - Verify your information. Apple pre-fills your name, email, and Team ID. Double-check these are correct.
- Declare associated accounts. If you own or control other Apple Developer accounts (or are controlled by another account), you must list them here. Be honest. Apple does verify this.
- Submit your application. You will receive a confirmation email while Apple reviews your enrollment.
- Wait for approval. Apple typically processes applications within a few business days, though it can take longer during busy periods.
Important Timing Detail
The reduced 15% commission rate does not start immediately upon approval. It kicks in 15 days after the end of Apple's fiscal month in which your enrollment is approved. For example, if Apple approves you on February 10th, the reduced rate starts around March 14th. Plan accordingly and do not assume you are on the lower rate the day after you apply.
What Happens When You Exceed $1 Million
This is where developers get nervous, but the mechanics are simple. If your proceeds cross $1 million during a calendar year, Apple bumps you back to the standard 30% commission for the remainder of that year. The rate change applies to all future transactions that year, not retroactively to what you already earned at 15%.
The good news: you can re-qualify the following year. If your next calendar year's proceeds drop below $1 million, you can re-enroll and get the 15% rate again. This is relevant for apps with lumpy revenue patterns, for instance a seasonal app that has one big year followed by a quieter one.
Realistically, if you are an indie developer reading this, exceeding $1 million is a champagne problem. When you get there, the 30% rate is a smaller concern because you have a genuinely successful business on your hands.
How Subscriptions Work with the Small Business Program
Subscriptions have their own commission rules, and they interact with the Small Business Program in ways that can be confusing. Let me break it down clearly.
For all developers (not just Small Business Program members): Apple charges 30% on auto-renewable subscriptions during the subscriber's first year. Once a subscriber has been continuously subscribed for 12 months, the commission drops to 15% for that subscriber from year two onward. This is Apple's standard subscription commission structure and has nothing to do with the Small Business Program.
For Small Business Program members: You already pay 15% on everything. So for subscriptions, you get the 15% rate from day one, regardless of whether the subscriber is in their first year or fifth. There is no further reduction to 7.5% or anything like that. The program simply ensures you are at 15% across the board.
| Scenario | Year 1 Commission | Year 2+ Commission |
|---|---|---|
| Standard developer (not enrolled) | 30% | 15% |
| Small Business Program member | 15% | 15% |
| EU developer (alternative terms, in SBP) | 10% | 10% |
This is a huge deal for subscription-based apps. If you are building a subscription app (and you probably should be), the Small Business Program saves you 15 percentage points on every new subscriber for their entire first year. That is money that would otherwise take 12 months of retention to recover.
The EU Digital Markets Act: A Different Fee Structure
If you distribute apps in the European Union, things get more complicated. The EU's Digital Markets Act (DMA) forced Apple to open up alternative distribution and payment options starting in 2024. By 2026, Apple has transitioned to a layered fee model for EU developers that replaces the flat commission structure.
Here is what the EU fee landscape looks like now.
- Reduced base commission: EU apps on the App Store pay either 10% (for Small Business Program members and for subscriptions after their first year) or 17% on transactions for digital goods and services, regardless of which payment processor you use.
- Core Technology Commission (CTC): As of June 2025, Apple applies an additional 5% commission on sales of digital goods or services that developers communicate and promote in their apps. This replaced the earlier Core Technology Fee (CTF) model.
- Alternative payment processing: Developers can use third-party payment processors in the EU. However, Apple still collects its commission via the External Purchase Server API, which you must use to report all transactions.
The bottom line for EU developers in the Small Business Program: your effective rate can be as low as 10% on subscriptions, but the CTC and reporting requirements add complexity. For most indie developers earning under $1M, the standard Small Business Program (15% flat) combined with staying on Apple's payment system is still the simplest and most predictable option.
If you sell primarily to EU customers and your revenue is growing, it is worth modeling the numbers under both fee structures. The DMA terms can save you money, but the operational overhead of alternative payment processing and transaction reporting may not be worth it until you reach meaningful scale.
Tips to Maximize Your Savings
Beyond simply enrolling, there are several strategies to get the most out of the program.
1. Enroll Early, Even Before You Launch
If you are a new developer with no App Store revenue, you qualify automatically. Enroll before your app launches so the 15% rate is in effect from your very first sale. Remember the 15-day delay after the fiscal month of approval. Do not wait until launch week to apply.
2. Consolidate Under One Developer Account
Some developers maintain multiple Apple Developer accounts for different apps or businesses. Since Apple combines proceeds from all associated accounts, having multiple accounts does not help you stay under the threshold. It does, however, add administrative complexity. Unless you have a genuine legal reason for separate accounts, consolidate everything under one.
3. Favor Subscriptions Over One-Time Purchases
Since Small Business Program members pay 15% on subscriptions from day one (instead of the standard 30% first-year rate), the program makes subscriptions even more attractive as a monetization model. The 15-point savings on first-year subscribers is significant, and subscription revenue tends to be more predictable.
4. Track Your Proceeds Monthly
Apple calculates eligibility on a calendar year basis. If you are approaching the $1M threshold, you want to know well in advance. Use App Store Connect's financial reports to track your running proceeds total. Some developers also use tools like RevenueCat for real-time revenue tracking.
5. Factor It Into Your Pricing Strategy
The 15% rate changes your unit economics. If you were pricing your subscription at $9.99/month to make the math work at 30%, you might be able to go lower (to be more competitive) or keep the same price (and pocket more). Run the numbers with the 15% rate and see if your pricing strategy deserves a refresh.
Common Questions and Misconceptions
Does the program apply to all transaction types?
Yes. The 15% rate applies to paid app purchases, in-app purchases (consumable and non-consumable), and auto-renewable subscriptions. It covers everything that normally gets the 30% commission.
Can I enroll mid-year?
Yes, you can enroll at any time. The reduced rate kicks in 15 days after the end of the fiscal month in which Apple approves your enrollment. You will not get a retroactive discount on transactions that already happened at 30%, but all future transactions will be at 15%.
What if I have apps on both iOS and macOS?
The Small Business Program covers the entire Apple ecosystem: iOS, iPadOS, macOS, watchOS, tvOS, and visionOS. Revenue from all platforms under your developer account is combined for the $1M threshold, and the 15% rate applies across all of them.
Does the $99/year developer fee count against the threshold?
No. The annual Apple Developer Program membership fee ($99/year) is separate from App Store proceeds and does not factor into the $1 million eligibility calculation.
What about the Google Play Small Business Program?
Google has a similar program. The Google Play service fee is reduced from 30% to 15% for the first $1 million in annual revenue. Unlike Apple, Google's program applies automatically to all developers, with no separate enrollment required. If you are shipping on both platforms, you benefit from reduced rates on both stores.
Should You Enroll? (Yes)
There is genuinely no reason not to. The enrollment is free, takes five minutes, and saves you 15 percentage points on every dollar you earn. Even if you are making $100/month, that is an extra $15 you keep. Over a year, every bit compounds.
If you are building your first iOS app, enroll now, before you launch. If you already have an app on the store and have not enrolled, stop reading and go do it. The link is on Apple's developer portal. Come back and finish this article afterward.
And if you want to ship your first app faster and start earning sooner, The Swift Kit gives you a production-ready SwiftUI codebase with authentication, paywalls, onboarding, and analytics built in. You focus on what makes your app unique, launch quicker, and start collecting that 85% revenue share from day one.