Definition
What freemium is
Freemium is a monetization model where the app is free to download and use, and payment unlocks extra features, higher limits, or an ad-free experience. The paywall is optional: a user can keep using the free tier indefinitely. It sits at the opposite end from a hard paywall, which blocks access until the user subscribes, and next to the soft paywall, which shows the offer but lets users dismiss it.
How it converts
Because paying is optional, freemium converts a smaller share of installs to paying customers than a hard paywall does. In RevenueCat's 2026 benchmark, freemium apps saw a median download-to-paid rate around 2.1% by day 35, against about 10.7% for hard paywalls. The trade-off is reach and time: freemium keeps far more users in the funnel and monetizes them later, and after about a year the retention of the two models is close to identical. Freemium suits apps whose value needs to be experienced before someone will pay.
Where pricing comes in
Freemium still lives or dies on the upgrade price. A free user in India or Brazil who hits the upgrade screen and sees a US price converted straight to their currency will not convert, so localized pricing set to local purchasing power is what turns the large free base of a freemium app into paying users across markets.
Examples
Example
A habit tracker is free to use with three habits, and a subscription unlocks unlimited habits and reminders. Most users never pay, but the free tier pulls in a large audience, and a small percentage upgrade over time. If the upgrade is priced at a flat $9.99 a month worldwide, users in lower-income markets rarely convert; localizing that upgrade price to each market lifts the paid share where the free base is largest.
Frequently asked
What is the freemium model?
Freemium makes an app free to download and use, with an optional paid upgrade that unlocks more features or removes limits. Users can stay on the free tier indefinitely, which maximizes reach but converts a smaller share to paying than a hard paywall.
Does freemium or a hard paywall make more money?
It depends on the app. A hard paywall converts a higher share of installs (around 10.7% vs 2.1% download-to-paid in RevenueCat's 2026 data), but freemium reaches many more users and monetizes them over time, with retention that converges after about a year.
How do I price a freemium upgrade for different countries?
Set the upgrade price to local purchasing power rather than converting your home price at the exchange rate. A price that fits each market lifts the paid conversion of your free base, especially in lower-income countries where a converted price is far too high.
Further reading
- Subscription vs One-Time vs Hybrid: What Each Does to Your App RevenueSubscription, one-time, or both? A 2026 look at what each model does to your revenue over time, with the churn, reactivation, and commission math.
- How Much Money Do Subscription Apps Actually Make?How much money do subscription apps make? The real 2026 benchmarks, what separates the winners, and the revenue lever most founders never touch.
- How to Price an App: Models, Billing Periods, and the NumberHow to price an app in 2026: choosing a model, weekly vs monthly vs annual vs lifetime, how much to charge, and localizing it per country.