> ## Documentation Index
> Fetch the complete documentation index at: https://recurr.dev/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Model assumptions

> The assumptions behind Recurr's public audit and docs: store fee rate, web-billing cost, migration cases, settlement timing, and what gets refined later.

The public audit is designed to answer one question quickly: **is the migration opportunity large enough to justify a Migration Review?**

It is not a full financial model. The Migration Review and Migration Analysis refine the inputs with your real store mix, plan mix, subscriber data, geography, and implementation constraints.

## Core assumptions

| Input                      | Public audit baseline                                                                                                    |
| -------------------------- | ------------------------------------------------------------------------------------------------------------------------ |
| Store-fee rate             | Your supplied blended rate, or 22% if unknown                                                                            |
| Migration cases            | 40% conservative, 55% base, 70% optimistic                                                                               |
| Recurr platform fee        | 3.5% on web-billed subscription revenue, flat (no Y1 step-up)                                                            |
| Migration performance fee  | 2.5% per migrated subscriber, tied to the Migration Program; lands across the first 12 months on web                     |
| Stripe processing          | Stripe's standard rates pass through — **2.9% + \$0.30 per transaction** in the US (varies by region and payment method) |
| Average transaction (ARPU) | $17 baseline (50/50 mix of $10 monthly and \$100 annual) — sets the per-transaction flat-fee impact                      |
| Cash-flow timing           | 45 days of *net* migrated annualized revenue (ARR after store fees) pulled forward once                                  |

The model is intentionally simple. It is meant to show order of magnitude without forcing you through a data-room exercise before you know whether the opportunity is worth a conversation.

## Store-fee rate

If you know your blended app-store fee rate, use it.

If you do not, the audit uses **22%** as a representative blended rate across iOS year-one subscriptions, iOS year-two subscriptions, and Google Play subscriptions. Your Migration Analysis replaces this with the actual mix if you provide it.

## Web-billing cost

Web billing has two cost layers, kept separate because they move differently and you control them differently.

### Recurr's fees

* **Platform fee:** 3.5% on web-billed subscription revenue, flat — no Y1 step-up. Applies to every web-billed dollar.
* **Migration performance fee:** 2.5% per subscriber migrated, tied to the Migration Program. Lands across each migrated subscriber's first 12 months on web. The audit treats this as an effective Year 1 cost so the recovery math nets it out.

Recurr's combined Y1 take on a migrated subscriber is **6%**; Y2+ steady-state is **3.5%**.

### Stripe processing (pass-through)

Stripe's standard rates: **2.9% + \$0.30 per transaction** in the US. Lower in EU/UK/AU (typically 1.5–1.7% + a local flat fee). Higher for some international card mixes and local payment methods. See [Stripe's pricing](https://stripe.com/pricing) for the full schedule.

The per-transaction flat fee's impact on your **percentage basis** depends on average transaction size (ARPU). At the model's \$17 ARPU baseline, the flat fee adds **\~1.76 percentage points** to the Stripe percentage. Annual-heavy books (larger AOV) feel it less; small-ticket monthly-heavy books feel it more.

### Worked all-in (US baseline, \$17 ARPU)

| Stage                  | Recurr                         | Stripe % | Flat-fee impact at \$17 AOV | All-in       |
| ---------------------- | ------------------------------ | -------- | --------------------------- | ------------ |
| First 12 months on web | 6% (3.5% platform + 2.5% perf) | 2.9%     | +1.76 pts                   | **\~10.66%** |
| Year 2+ ongoing        | 3.5% (platform only)           | 2.9%     | +1.76 pts                   | **\~8.16%**  |

EU/UK/AU run lower because Stripe processing is \~1.5–1.7% rather than \~2.9%, and local payment methods often have different (sometimes zero) flat fees. The [live audit](https://recurr.dev/audit) resolves your country-specific Stripe rate.

International cards, low-ticket monthly plans, local payment methods, chargebacks, taxes, and currency conversion can move the exact payment-cost line. Those are Migration Review details, not reasons to block the first audit.

## Cash-flow release

The audit models the one-time settlement benefit as **45 days of *net* migrated annualized revenue pulled forward** — your share after store fees, not the gross customer payment. Apple holds the gross GMV during settlement but only owes the developer the net.

That equals roughly **12.3% of net migrated revenue**, once. At a 22% blended store-fee assumption, the conservative public rule of thumb is **\~9% of migrated ARR** (12.3% × 0.78). At the base 55% migration case and the same 22% assumption, that's roughly **5.3% of total ARR** as a cash-flow release. Your audit reports the specific figure using your actual blended rate — apps on lower blended fees see proportionally more cash because the discount is smaller.

This is not P\&L lift. It is timing: revenue that would have arrived later under app-store settlement lands sooner through web billing.

## What the public audit does not model

* Holdout-relative churn impact
* Offer cost or incentive cost
* Monthly vs annual transaction-count effects
* International card mix and local payment-method mix
* Subscriber-level renewal timing
* Cohort-specific migration rates
* Support load during migration waves

Those inputs matter. They belong in the Migration Review and Migration Analysis, where the model can use the real app context instead of generic assumptions.

[Run the audit](https://recurr.dev/audit) or [book the Migration Review](https://recurr.dev/apply).
