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What Should You Charge
for Your Subscription?

Enter your cost to serve, target margin, and competitor range. Get an instant 3-tier pricing recommendation with monthly and annual options.

Your Numbers

$
$0$200
%
1%99%
$
$0$500
$
$0$500

Recommended Price

$17/mo

Based on your costs + market position

Annual Option

$170/yr

2 months free (~17% off)

Suggested 3-Tier Pricing

Starter

$11

/month

Entry-level plan for individuals getting started

Most Popular

Pro

$17

/month

Full-featured plan for growing businesses

Business

$29

/month

Advanced plan for teams and power users

Annual Pricing (2 months free)

Starter / yr

$110

Pro / yr

$170

Business / yr

$290

Pricing strategy

Make Your Pricing Work Harder

01

Make the middle tier the obvious choice

Research shows most buyers choose the middle of three options. Position your Pro tier at the price you want most customers to pay, then use Starter and Business to frame it as the sensible pick.

02

Push annual billing hard

Annual subscribers churn 3–5× less than monthly. Two months free converts well and the upfront cash improves your runway. Surface the annual option first in your pricing table, not as an afterthought.

03

Offer a free trial, not a free plan

A 7–14 day free trial creates urgency and a clear conversion moment. A freemium tier creates a permanent free user base that's hard to convert. Unless your product relies on network effects, a trial outperforms freemium.

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Glossary

Key Terms Explained

Plain-English definitions for every pricing concept this tool uses.

Subscription Billing

A business model where customers pay at regular intervals for ongoing access to a product or service.

Tiered Pricing

A pricing strategy offering multiple plan tiers (Basic, Pro, Enterprise) at different price points and feature sets.

Billing Cycle

The recurring time interval between subscription charges, typically weekly, monthly, quarterly, or annually.

Average Revenue Per User (ARPU)

Total subscription revenue divided by the number of active subscribers in a period.

Free Trial

A limited period of access before billing begins, used to reduce signup friction and let customers experience value.

Freemium

A pricing model offering a free tier with limited features alongside paid premium tiers.

How-to Guides

Ready to Set Your Pricing?

Step-by-step instructions for building and launching your subscription plans.

How to Create Subscription Plans in WooCommerce

Build tiered subscription plans with different features, pricing, and billing intervals.

6 steps

How to Offer a Free Trial in WooCommerce

Add a free trial period to subscription products and configure the trial-to-paid transition.

6 steps

How to Upgrade or Downgrade Subscriptions in WooCommerce

Let customers self-service change their subscription plan with automatic proration in WooCommerce.

6 steps

Frequently Asked Questions

Should I price based on cost or competitors?
Neither alone — the best subscription pricing blends both. Cost sets your floor (you must cover costs and earn a margin), competitors set the ceiling (customers will compare), and your value proposition determines where within that range you land. Value-based pricing — anchoring price to the outcome you deliver — consistently outperforms both pure cost-plus and pure competitive pricing.
What discount should I offer for annual billing?
Two months free (16.7% off) is the industry standard that converts well without leaving too much on the table. Below 10% feels trivial and won't move behaviour. Above 25% can anchor expectations too low. For WooCommerce stores, the annual plan also dramatically reduces involuntary churn from failed monthly payments.
How many pricing tiers should I offer?
Three tiers is the sweet spot supported by pricing research. A Starter tier qualifies buyers and reduces friction to signup. A mid-tier Pro plan should be your primary conversion target — price and position it as the clear best value. A Business tier anchors perception and captures high-intent buyers. Avoid four or more tiers — choice overload increases drop-off.
What is the "middle tier anchor" effect?
When you present three prices, most buyers gravitate toward the middle option — it feels safe and well-reasoned. This means your most important pricing decision is your Pro/mid tier. Set it at the price you actually want most customers to pay, then position Starter below it and Business above it to make it look like the obvious choice.
When should I offer a free trial vs a freemium plan?
Use a free trial (7–14 days) when your product delivers clear value quickly and you want to convert buyers who need to experience it first. Use freemium when your product has strong network effects or when free users create value (referrals, data, community). For most WooCommerce subscription products, a time-limited free trial converts better than freemium.

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