Annual vs monthly subscription calculator: when does yearly pay off?
When choosing between an annual vs monthly subscription, how long you keep it decides: the yearly plan costs less per month but is paid upfront for twelve months. The calculator shows after how many months the yearly plan pays off, how much you save in a year and what would be cheaper if you stop sooner.
Source: Wikipedia – Break-even (economics). Updated: .
How it is calculated
The yearly plan pays off from the month in which the yearly price drops below the sum of the monthly payments. The figure is yearly price divided by monthly price: at $99 a year and $12.99 a month it is 7.6 months – from the eighth month the yearly plan is cheaper.
How it is calculated
- Monthly plan: months × monthly price.
- Yearly plan: every started year in full – after 13 months it is already two yearly payments.
- Saving after twelve months: twelve monthly payments minus the yearly price.
- Effective monthly price: yearly price ÷ 12.
What to watch for
- Your planned use is decisive: if you cancel after five months, the monthly plan is usually better.
- Check the term and the cancellation period: if a yearly plan renews automatically, every further year counts again.
- If the yearly plan is hardly cheaper than twelve months, the flexibility of the monthly plan speaks for itself.
The figures are your own; prices and conditions change. The calculator fits any subscription with a monthly and a yearly price, without reference to a provider. Your entries stay in your browser.
Frequently asked questions
When does an annual subscription pay off?
As soon as you use it for more months than the yearly price divided by the monthly price. At $99 a year and $12.99 a month that is 7.6 months, so from the eighth month.
How much do I save with the yearly plan?
With full use over twelve months it is twelve monthly payments minus the yearly price. The calculator shows the amount and the discount in percent.
What if I cancel earlier?
Usually you still pay the full year. Then the monthly plan is cheaper for short use – the calculator compares both for your planned time.
Does a yearly plan renew automatically?
Often yes, unless you cancel in time. It is in the terms; note the cancellation date.
Does it work for every subscription?
For any subscription with a fixed monthly and yearly price, such as streaming, software or a gym. It is not tied to any provider.
Are my entries private?
Yes. Everything is calculated in your browser; nothing is uploaded.
Sources and legal basis
As of: · Editorial policy
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