TL;DR
Before you set a headline price, set a floor you refuse to go below. Add up the store cut, any paid tools your app uses, and the support you owe each user, then never price so low that a subscriber costs you more than they pay. The floor protects you from a cheap paywall you regret.
New builders get excited and price for downloads, forgetting that every subscriber costs something to serve. The store takes its cut, your app may call a paid API, and each user is a bit of support you owe. Set a price floor first, a number you refuse to drop below, and you will never find yourself with a busy app that quietly loses money.
Add up what a subscriber really costs
Start with the store cut: Apple and Google take 30 percent by default, or 15 percent on the small-business program, so a $9 subscription nets around $7.65. Then subtract any per-user cost, like a paid AI or data API your app calls. Whatever is left is your true margin. If your app leans on a paid API, that margin can vanish faster than you expect, which is exactly why the floor matters.
Build the floor from real numbers
- Store cut: subtract 30 percent, or 15 percent on the small-business program, from every price.
- Per-user API or service cost: estimate what an active user consumes each month and subtract it.
- Support and updates: leave room for the time each user quietly costs you over the year.
- A margin you are happy with: the floor is your cost plus the minimum profit that makes the app worth running.
Let the floor guide your headline price
Your floor is not your list price; it is the line you will not cross. Once you know it, set your headline price comfortably above it so you have room for discounts, free trials, and the occasional refund without slipping into the red. If the market rate for your category sits below your floor, that is a signal to cut your per-user costs or rethink the offer, not to price at a loss.
Knowing your floor also makes you calm when someone asks for a cheaper plan. You can offer a smaller tier or an annual discount and still stay above the line, instead of caving to a price that quietly loses money on every install. The floor turns pricing from anxiety into a decision you already made.
Common questions
What is a price floor for an app?
It is the lowest price you will accept, set from your real costs. After the store cut and any per-user API expense, a subscriber must still pay more than they cost you to serve. The floor is the line you refuse to cross so you never run a busy app that quietly loses money.
How do I calculate my floor?
Subtract the store cut, 30 percent or 15 percent on the small-business program, then subtract any per-user cost like a paid API your app calls. Add the minimum profit that makes the app worth running. That total is your floor, the number your headline price must sit safely above.
Does the store cut count toward my floor?
Yes, it is usually the biggest piece. Apple and Google take 30 percent by default, or 15 percent on the small-business program, so you only ever see 85 percent at best. Always build your floor from what you actually keep, not the sticker price a user pays.
What if the market price is below my floor?
That is a warning, not a reason to price at a loss. It usually means your per-user costs are too high, so cut the paid services your app leans on, move to a leaner model, or rethink the offer. Never set your price below your true cost to chase downloads.
How much above my floor should I price?
Enough to absorb free trials, discounts, and the occasional refund and still profit. Your floor is the line you will not cross; your headline price should sit comfortably above it so normal ups and downs never push a subscriber into costing you money.
Does a price floor stop me from being competitive?
No, it keeps you healthy. Knowing your floor lets you offer a smaller tier or an annual discount with confidence, because you know exactly how low you can go. It stops you from caving to a cheap plan that loses money on every install while still leaving room to compete.
Keep going
Set a floor so no subscriber ever costs you money
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