Lunvo

Metrics explained

Gross vs net revenue on Shopify, and which one Lunvo shows

On Shopify, the revenue you bill and the revenue you keep are two different numbers. Knowing the gap matters for pricing and forecasting, and Lunvo shows both.

In short

Gross revenue is what merchants are charged. Net revenue is what you keep after Shopify's revenue share. Shopify takes 0% on your first $1,000,000 of annual app revenue, then 15% above that, and it also retains tax. Lunvo tracks both gross and net, so you see headline revenue and take-home side by side.

Gross revenue, defined

Gross revenue is the full amount merchants are charged for your app, before any deduction. It is your headline number, useful for measuring demand and pricing power.

Net revenue and the Shopify revenue share

Net revenue is what reaches you after Shopify's cut. Shopify charges 0% on your first $1,000,000 in annual app revenue, then 15% on revenue above that. Tax is also retained by Shopify rather than paid to you. Check Shopify's current terms, since the share can change.

Why the gap matters

The gap between gross and net changes your real unit economics. A plan that looks healthy on gross can be thinner on net once the revenue share applies, which affects payback, MRR planning and how you price.

Where each figure shows in Lunvo

Lunvo reads both gross and net amounts from the Shopify Partner API, so revenue, MRR and revenue per merchant can be viewed either way. MRR is computed on gross, while net shows what actually lands.

See also

FAQ

What is the Shopify revenue share?

Shopify takes 0% on your first $1,000,000 of annual app revenue, then 15% on revenue above that threshold. Tax is retained separately. Always check Shopify's current terms, as the share can change.

What is the difference between gross and net revenue?

Gross revenue is what merchants are charged. Net revenue is what you keep after Shopify's revenue share and tax retention. Net is always lower than or equal to gross.

Which number should I track?

Track both. Gross shows demand and pricing power, net shows real take-home. Forecasting and unit economics should be based on net, while gross is useful for top line growth.

Does Lunvo show gross or net revenue?

Both. Lunvo reads gross and net amounts from the Partner API and shows them side by side, so you are never guessing which figure you are looking at.

See gross and net side by side, free during early access

Lunvo pulls both figures from your Partner data so your take-home is never a surprise. Create your free account to get started.

Free during early access, no credit card needed.