Exchange rate pricing is the most straightforward approach to international pricing: take your base price and convert it to each local currency using the current foreign exchange rate. It's simple, transparent, and requires no economic data beyond the exchange rate itself.
You set a single base price — say $9.99 USD. The exchange rate method multiplies that amount by the current USD-to-local-currency rate for each market. A $9.99 app in a market where 1 USD = 83 INR becomes ₹829 before rounding.
For app stores, the final price is then snapped to the nearest valid price tier. Apple has ~900 price points per currency; Google Play allows more flexibility but still rounds to clean values.
For a $9.99 base price, here is how exchange rate conversion compares to a PPP-adjusted price. The delta shows how much more expensive the FX price is relative to what local purchasing power suggests.
| Region | FX Price | PPP Price | FX Premium |
|---|---|---|---|
| United States | $9.99 | $9.99 | — |
| European Union | €9.49 | €8.99 | +6% |
| Japan | ¥1,500 | ¥1,200 | +25% |
| India | ₹849 | ₹349 | +143% |
| Brazil | R$54.90 | R$29.90 | +84% |
| Turkey | ₺349.99 | ₺109.99 | +218% |
FAQ
Mostly yes. When you set a single USD price and let the stores auto-generate local prices, they use their own exchange rates (updated periodically). The difference is that store rates tend to lag the market and include a margin, so your effective prices may differ from a live FX conversion.
Currency markets move daily, but App Store and Google Play prices are discrete tiers. In practice, quarterly reviews are sufficient for most apps. Major currency events (e.g., a 20%+ devaluation) may warrant an immediate update.
No. That is its main limitation. A price that feels affordable in the US can be expensive in a country with lower average income, even after accurate FX conversion. For markets with significant purchasing power differences, consider PPP-based strategies instead.