Gross vs net MRR

Updated 2026-08-04

MRR is conventionally gross — before payment processing fees. That's the standard, and it's a sensible one: it makes MRR comparable between businesses regardless of who processes their payments.

But if you sell across several platforms, the fee gap is large enough that gross alone will mislead you.

What each platform takes

Approximate, and worth checking against your own statements:

Platform	Typical cut	Notes
Stripe	~2.9% + 30¢	Payment processor; tax is your problem
Lemon Squeezy	~5% + fees	Merchant of record; handles VAT/sales tax
Gumroad	~10% flat	Includes hosting and checkout
Apple App Store	15% or 30%	15% under the Small Business Program
PayPal	~3.5% + fixed	Varies by country and method

Why the difference matters

$10,000 of gross monthly revenue nets roughly:

Stripe: ~$9,700
Lemon Squeezy: ~$9,500 — but VAT compliance is handled
Gumroad: ~$9,000
Apple, small business tier: ~$8,500
Apple, standard tier: ~$7,000

That's a $2,700/month spread on identical gross revenue. For most solo businesses that gap is larger than the profit margin.

The higher fees aren't necessarily bad deals. Lemon Squeezy's cut buys you out of registering for VAT in dozens of jurisdictions. Apple's buys distribution. But you should know what you're paying for.

Track both, separately

The practical model:

Gross MRR — your headline recurring figure, comparable and standard
Fees — a separate line, so the cost is visible
Net cash — what actually reaches your bank

Blending fees into MRR gives you a number that's neither standard nor comparable, and hides the very thing you'd want to act on.

How FRGMNT reports this

Honestly, including where it's imprecise:

Stripe: fees are read exactly from balance transactions. Today's cash shows gross, refunds, fees and net separately.
Lemon Squeezy: fees are currently approximated as zero, so its share of today's cash reads closer to gross than net.
Gumroad and PayPal: fees not subtracted.
True MRR: gross across all platforms, per the convention above — so the fee approximations don't affect it.

If you need exact net figures for accounting, use each platform's own reporting. If you want a fast, honest view of what recurs and roughly what landed, that's what the app is for.

The decision this should inform

If you're choosing where to sell a new product, run the numbers net rather than gross. A $49 product sold through Gumroad nets about $44; through Stripe about $47.30. Over a thousand sales that's $3,300 — which may or may not be worth the checkout and hosting Gumroad provides, but should be a decision rather than an accident.

Frequently asked

Is MRR gross or net of fees?

By convention MRR is gross, before payment processing fees. This makes it comparable between businesses using different processors. Track fees separately rather than netting them into MRR.

How much do payment platforms actually take?

Roughly: Stripe around 2.9% plus 30 cents, Lemon Squeezy around 5% plus fees as a merchant of record, Gumroad around 10% flat, and Apple 15% or 30% depending on your tier.

Why does the fee difference matter so much?

Because the same $10,000 of gross revenue nets around $9,700 on Stripe and around $7,000 through Apple's standard tier. Comparing platforms on gross revenue alone hides a difference that can exceed your profit margin.