The long-running listings and reviews magazine will be revamped later this year to join the growing market of free titles in the capital.
Its London edition currently has a circulation of 55,000 and costs £3.25, and will increase to 300,000 copies in the autumn.
The company aims to rise the amount charged for advertising space in its magazine to make up for losing the cover price.
Time Out follows the likes of Shortlist, Stylist and the London Evening Standard, titles which have all made successful changes to free circulation in London.
Editor Tim Arthur denied that the move to free circulation was due to decreasing sales, or that it was forced by private equity firm Oakley Capital, who bought 50% of the company in 2010.
"This is not driven by private equity, it is something that has been looked at over a good amount of years on and off," Arthur told The Guardian. "It is still a profitable magazine, this has not been driven by decline, it is driven by opportunity. As a magazine it was the next thing to look at really, and now feels like the right time."
Subscribers will still have to pay a small charge to cover postage costs.
Over half of the 300,000 copies will be handed out by 200 distributors across London's underground and rail stations.
Copies will also be made available at culture spots, including the Tate Modern and at coffee shops. Its publication day will stay as Tuesdays.
The relaunched magazine will see a decrease in terms of content due to the increase of advertising pages.