The short answer
Google Play now separates its service fee from its billing fee. When you use Google Play billing in the EEA, UK or US, the billing fee is 5%. The in-app purchase service fee drops to 20% for new installs, developers in Google's new quality programs pay 20% on existing installs and 15% on new installs, and recurring subscriptions carry a 10% service fee. The changes roll out region by region between June 2026 and September 2027. Check Play Console for the exact rates that apply to your account.
What changed
Google's March 2026 announcement followed the resolution of its disputes with Epic Games. The main changes:
| Item | What Google announced |
|---|---|
| Billing fee | Separate from the service fee; 5% in the EEA, UK and US when using Google Play billing |
| IAP service fee, new installs | 20% for first-time installs after the new fees launch in a region |
| Program participants | 20% on transactions from existing installs, 15% from new installs |
| Recurring subscriptions | 10% service fee |
| Programs | New Apps Experience Program and a revamped Google Play Games Level Up program, with quality benchmarks |
| Registered App Stores | Optional program giving qualifying sideloaded stores a smoother install flow |
When it applies
- By June 30, 2026: EEA, UK and US.
- By September 30, 2026: Australia.
- By December 31, 2026: Korea and Japan.
- By September 30, 2027: the rest of the world.
If you sell in several regions, you will have different fee structures for a while. Revenue models should be built per region.
What "new installs" means for games
The lower rates apply to transactions from installs that happen after the change launches in a region. For a live game, that means revenue from long-time players and newer players can carry different fees. Games that acquire many new players benefit sooner; games that earn mostly from a loyal existing base see a smaller change at first.
Google Play Games Level Up
Level Up is Google's program for games, revamped as part of these changes. Participants who meet its benchmarks pay the lower program rates. Google said the programs would launch by September 30 for the EEA, UK, US and Australia, with more details published over time. Check Play Console for current requirements; they focus on quality across Android devices and form factors.
US: external links and alternative billing
In the US, developers enrolled in the external content links and alternative billing programs must report transactions and pay the relevant service fees, as set out in Play Console Help. If you link players to web purchases, read the current US requirements carefully, including reporting deadlines.
How to model the impact
- Split revenue by region and by install cohort (before and after the change).
- Separate subscriptions from one-off purchases.
- Apply the service fee plus the 5% billing fee where you use Google Play billing in the EEA, UK and US.
- Estimate the effect of joining Level Up if your game can meet its benchmarks.
- Compare with your web shop costs if you use external links, including payment processing and the service fees that still apply.
What it means for monetisation design
- Subscriptions look more attractive at a 10% service fee, for games where a subscription fits, such as VIP passes or ad-free tiers.
- Acquisition matters more , because new installs carry lower rates.
- Quality programs are worth tracking : device performance and stability now have a direct link to fees.
For choosing a model, see ads vs in-app purchases and mobile game KPIs.
A worked example
Imagine a game in the US that earns from one-off in-app purchases and uses Google Play billing. A purchase from a player who installed after the change launched carries the new-install service fee plus the 5% billing fee. The same purchase from a long-time player carries the existing-install rate plus billing. If the game joins Level Up and meets its benchmarks, both rates drop further. Subscriptions sit at a 10% service fee plus billing. The exact numbers for your account appear in Play Console, so use this structure to build a spreadsheet, then fill in your own rates.
Common mistakes when budgeting
- Using one global rate for every region during the rollout period.
- Forgetting the separate billing fee when using Google Play billing.
- Assuming web purchases through external links are fee-free in the US.
- Not tracking which purchases come from new installs.
- Ignoring tax, refunds and payment processing on web shops.
Getting these right matters most for games with thin margins, such as those that rely on paid user acquisition, where a few percentage points can decide whether a campaign is profitable.
What about the App Store?
Apple's fees and rules are separate and differ by region, including US changes to linking to web purchases. Budget per store and per region rather than assuming one rate. Our 2027 trends guide covers the wider shift in store rules.
The bottom line
Most Android games will keep more of each sale under the new structure, especially from new players, subscriptions and developers in Google's programs. The details vary by region and timing, so model them properly rather than using a single headline rate.
Sources: Android Developers Blog: a new era for choice and openness · Play Console Help: policies for developers serving US users · Play Console Help: service fees. Checked October 27, 2026.
Related: Mobile game development · How games earn · Get a quote
Originally published on A Plus Games Studio, a game, AR and VR development studio in Sacramento, CA.
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