Understand Shopify's New Revenue Share Policy (2025)

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Shopify changed how they take their cut from app developers in 2025.

They moved from an annual reset model to a lifetime cap system.

The change affects when and how much commission you'll pay on your app revenue.

Let's clear up exactly what changed and what it means for your bottom line.

What exactly changed with Shopify's revenue share?

The big shift is from an annual reset to a lifetime cap. Before 2025, you'd get your first million dollars commission-free every single year, and the counter would reset each January 1st. Now, you get that million-dollar exemption just once for your entire time as a Shopify developer.

Think of it like this: the old system was like getting a fresh annual allowance, while the new system is more like a one-time gift card you use up over time. Once you've earned your lifetime million, you'll pay 15% commission on all future revenue, period.

The percentage they take (15% after the threshold) stays the same. What changed is how often that threshold resets (spoiler: it doesn't anymore).

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When did these changes actually take effect?

Shopify announced the changes in April 2025, but there's a twist in the timeline. The Partner Program Agreement updates went into effect on June 16, 2025, with full implementation on July 16, 2025.

Here's the crucial part: even though the policy kicked in mid-2025, Shopify only counts revenue earned from January 1, 2025 onwards toward your lifetime cap. Everything you made before 2025 doesn't count toward that million-dollar threshold.

So if you were already killing it in 2024, good news; that revenue doesn't eat into your lifetime exemption.

Does my pre-2025 revenue count toward the $1M lifetime cap?

No, and this is probably the best news in the whole change. Your revenue counter started fresh on January 1, 2025.

If you made $5 million before 2025, that's completely separate. Your lifetime cap calculation begins at zero in 2025, giving you another full million commission-free from that point forward.

Shopify explicitly stated that "earnings before January 1, 2025 do not count toward the $1 million threshold." They're basically giving everyone a clean slate for the lifetime cap calculation.

How exactly is commission calculated when I cross the $1M threshold mid-year?

You only pay commission on revenue above the $1M mark, not on the entire amount. Let's walk through a specific example to make this crystal clear.

Say you're earning $100,000 per month consistently. You'd hit $1M in October 2025 (month 10). For October, you'd earn $100,000 but only pay commission on the amount over $1M. Since you earned $900,000 in the first 9 months, you'd pay 15% on just $100,000 (which is $15,000 to Shopify).

Then for November and December 2025, you'd pay 15% on the full $100,000 each month. Your total commission for 2025 would be: October ($15,000) + November ($15,000) + December ($15,000) = $45,000 total on $1.2M in revenue.

What happens when I hit the $1M lifetime threshold?

Once your total revenue from January 1, 2025 onwards hits $1 million, every dollar after that gets hit with a 15% commission. This is permanent; there's no going back to 0% commission.

Let's say you hit $1 million in November 2025 and then earn another $200,000 by year-end. You'll pay 15% on that $200,000, which equals $30,000 to Shopify.

Then in 2026 and every year after, all your revenue is subject to the 15% commission. The days of getting a fresh million-dollar exemption each January are gone.

What's the real dollar difference between old and new systems over 5 years?

Let's compare using a developer earning $800,000 annually. This shows how the impact compounds over time.

Old system (annual reset): You'd never hit the $1M threshold in any single year, so you'd pay $0 in commission for all 5 years. Total revenue: $4M, total commission: $0.

New system (lifetime cap): Year 1: $0 commission (under $1M). Year 2: You hit $1M at month 3, so you pay 15% on $600,000 = $90,000. Years 3-5: 15% on full $800,000 = $120,000 per year. Total commission over 5 years: $0 + $90,000 + $120,000 + $120,000 + $120,000 = $450,000.

That's a $450,000 difference over 5 years for someone earning $800K annually. The new system costs successful mid-tier developers significantly more.

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How does this affect apps under multiple Partner accounts?

Shopify aggregates earnings at the partner level, including apps developed under any associated developer accounts. This means if you're running multiple apps under different but associated accounts, all that revenue counts toward your single lifetime cap.

You can't game the system by splitting apps across accounts. Shopify requires you to report all associated developer accounts when you register, and they track the combined revenue.

Even though revenue is calculated across all associated accounts, payouts still happen separately at the individual Partner account level. But the $1M threshold? That's shared across all your associated accounts.

If I'm making $50K monthly, when exactly will I start paying commission?

With $50,000 monthly revenue, you'll hit the $1M cap in month 20, which would be August 2026 (counting from January 2025).

Here's the exact breakdown: January 2025 to July 2026 = 19 months × $50,000 = $950,000 (no commission). In August 2026, you earn another $50,000, bringing your total to $1,000,000. Still no commission since you're right at the threshold.

Starting September 2026, every dollar is subject to 15% commission. So September 2026 onwards: $50,000 × 15% = $7,500 monthly to Shopify. By the end of 2026, you'll have paid $30,000 in commission (4 months × $7,500). Every year after that: $90,000 annually in commission.

Is the 15% commission rate changing?

No, the commission rate stays at 15% for revenue above the threshold. What's changing is how often you get to reset back to 0%.

The rate structure remains the same: 0% on your first million (now lifetime instead of annual), then 15% on everything above. Some developers initially thought the percentage might increase, but Shopify kept it at 15%.

Also unchanged: the requirement to register for the reduced revenue share plan with a one-time $19 fee per Partner account if you want the 15% rate instead of the default 20%.

Who's most affected by this change?

Successful developers earning over $1M annually are hit hardest. Under the old system, someone making $1.5M yearly would pay $75,000 in commission annually (15% of $500K). Now, after their first year, they'll pay $225,000 annually (15% of $1.5M).

Small developers earning under $1M lifetime won't feel any impact. If you're making $200,000 per year, you've got five years before you even hit the threshold.

Medium-sized developers in the $500K to $1M range need to plan more carefully. You might hit the cap in year two or three, after which all revenue is subject to commission.

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How different revenue scenarios play out

Let's look at real numbers to see how this impacts different types of developers. Remember, we're only counting revenue from January 1, 2025 onwards.

The table below shows what you'd pay under the new lifetime cap system versus what you would have paid under the old annual reset system.

Annual Revenue (USD)	Commission by Year 3 (% and USD)	Explanation
$200,000/year	0% ($0)	Total after 3 years is $600K, still under $1M cap, so no commission yet
$400,000/year	15% on $200K ($30,000 total)	Hit $1M cap in year 3, pay 15% on the last $200K only
$750,000/year	15% on $1.25M ($187,500 total)	Hit cap in year 2, pay commission on $250K in year 2 plus all $750K in year 3
$1,200,000/year	15% on $2.6M ($390,000 total)	Hit cap in year 1, pay 15% on $200K in year 1, then full $1.2M in years 2 and 3
$2,000,000/year	15% on $5M ($750,000 total)	Pay 15% on $1M in year 1, then full $2M each in years 2 and 3
$5,000,000/year	15% on $14M ($2,100,000 total)	Pay 15% on $4M in year 1, then full $5M each in years 2 and 3
Comparison: $1.5M/year old system	15% on $1.5M ($225,000 total)	Under old system: would only pay 15% on $500K each year, totaling $225K over 3 years