TL;DR
Pricing an app is two decisions: what you charge and what you put behind the paywall. Both are anchored to the value your app delivers, not a number you guessed. A common structure is a free trial into a monthly and annual subscription, wired with RevenueCat and tested before you submit. Enroll in Apple and Google's Small Business programs to keep 85% of revenue. Price for the value your app creates, and test the paywall - your conversion rate is where the real revenue is made.
Why value, not a guessed number, sets the price
The most common pricing mistake is picking a number that feels comfortable to you instead of one anchored to the value the app delivers. What competitors charge tells you what the market accepts. What your app actually saves or gives a user tells you what it is worth. Look at the top apps solving your problem, note their monthly and annual prices, and read their reviews for whether users feel the price is fair. That is your reference range - not a number you pulled from the air.
Before you wire the paywall, decide what the app is worth to the person using it. An app that saves someone real time or money every week can command a real subscription. An app with a small, occasional benefit needs a lower price or a one-time purchase. Skip this and you are guessing, and guessing is how builders both underprice a valuable app and overprice a thin one.
Choose your paywall structure before you build it
The paywall structure is the most you can charge given how your app delivers value. The most common structure for a first app is a free trial into a subscription: the user gets a taste of the core value, then pays to keep it. Decide what stays free, what the trial unlocks, and what sits behind the subscription before you wire it. If the free tier gives away everything, nobody upgrades; if it gives away nothing, nobody tries. The discipline is deciding your free-versus-paid line before you build the paywall.
Account for store fees and keep 85% of revenue
The subscription price is not your revenue. Apple and Google take a cut, but that cut is 15% instead of 30% if you enroll in the Apple App Store Small Business Program and Google Play's equivalent, which most first-time indie builders qualify for. That is the difference between keeping 70% and keeping 85% of every dollar. Wire RevenueCat to manage the subscriptions, enroll in both Small Business programs before you launch, and price knowing 85% of the sticker price is what actually reaches you.
- Store fee - 15% if you enroll in Apple and Google's Small Business programs, 30% if you do not
- Trial cost - free trials convert better but delay revenue, factor the trial length in
- Refunds - a small share of subscribers refund, account for it in your projections
- RevenueCat - one SDK manages both stores' subscriptions and reporting
- Annual versus monthly - annual plans lower churn but lower the entry price, offer both
Offer monthly and annual with the value clear
Nearly every successful subscription app offers both a monthly and an annual plan. The monthly plan is the low-commitment entry; the annual plan lowers churn and raises the lifetime value per user, usually priced so it looks like a clear discount over twelve monthly payments. Show both, make the annual savings obvious, and let the user choose. A single take-it-or-leave-it price converts worse than two options where the annual plan feels like the smart deal.
A practical approach: set the monthly price at what a comparable app charges, then price the annual at roughly the cost of eight to ten months so the discount is real. Know what each tier unlocks before you launch. When a user hits the paywall, the choice should feel like which plan, not whether to pay at all.
Free trial versus straight paywall
The same app can convert differently with a free trial versus an immediate paywall. A free trial lets the user feel the value first, which usually lifts conversion, but it delays revenue and some users cancel before the charge. An immediate paywall filters for committed users and starts revenue sooner, but converts a smaller share of installs. Habit, fitness, and utility apps usually do better with a trial because value builds over days. A one-time-benefit app can justify a straight paywall or even a one-time purchase.
Test and adjust what does not convert
If your app has installs but few subscribers, the paywall is usually the signal that is off - wrong placement, wrong price, or an unclear value story. Adjust the paywall timing first, then the price, and watch how conversion moves in RevenueCat rather than guessing. Revenue tied up in a paywall nobody converts on is the quiet killer of a first app's income, so a disciplined builder tests the paywall and iterates rather than shipping one guess and hoping.
Common questions
How do I decide what to charge for my app?
Anchor the price to the value your app delivers, then reference what comparable apps charge. Look at the top apps solving your problem, note their monthly and annual prices, and read reviews for whether users feel the price is fair. An app that saves real time or money weekly can command a real subscription; a thin one needs a lower price.
How do I keep 85% of my app revenue?
Enroll in the Apple App Store Small Business Program and Google Play's equivalent, which most first-time indie builders qualify for. That drops the store cut from 30% to 15%, so you keep 85% of every dollar. Enroll before you launch and price knowing 85% of the sticker price is what actually reaches you.
Should I offer a free trial or charge right away?
It depends on the app. A free trial lets users feel the value first and usually lifts conversion, which suits habit, fitness, and utility apps where value builds over days. An immediate paywall starts revenue sooner and filters for committed users. Test both in RevenueCat and keep the one that converts better for your app.
Where should I show the paywall in my app?
At the moment the user feels the value, not before. Surface it right after their first small win rather than on the first launch screen. Placing it too early churns installs; placing it at the value moment lifts conversion. RevenueCat lets you test placement, and the timing is where most of the revenue is made.
Should I offer monthly and annual plans?
Yes. The monthly plan is the low-commitment entry and the annual plan lowers churn and raises lifetime value. Price the annual at roughly eight to ten months' worth so the discount is obvious. Two options where the annual feels like the smart deal convert better than a single take-it-or-leave-it price.
What do I do if my app has installs but few subscribers?
The paywall is usually the issue - wrong placement, wrong price, or an unclear value story. Adjust the paywall timing first, then the price, and watch conversion in RevenueCat rather than guessing. Do not leave revenue tied up in a paywall nobody converts on; test and iterate until it works.
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