Annual vs Monthly Subscription Calculator

How it is calculated

The tool annualises the monthly plan and compares it with the annual price: monthly-plan yearly cost = monthly × 12, savings = monthly × 12 − annual and savings % = savings ÷ (monthly × 12) × 100. Both prices are the amounts you are billed per charge, in dollars: the monthly price per month, the annual price once per year. A positive saving means the annual plan is cheaper; a negative saving, printed with the minus sign before the dollar sign (for example -$30.00), means the annual plan costs more than twelve monthly payments. The tool only compares price tags: it shows the saving, the percentage and the twelve-month cost of the monthly plan, but it does not model cancellation, free trial months, taxes or price rises. The monthly price must be above zero and the annual price cannot be negative; otherwise no result is shown.

Common mistakes

• Entering the per-month equivalent shown on the annual plan's sales page (for example 12) as the annual price. The annual field must hold the full amount charged once a year.
• Assuming the percentage is a discount on the annual price. It is measured against the twelve-month cost of the monthly plan, so $36 saved on $180 is 20.00%, not 25%.
• Ignoring a negative result. A minus sign in front of the savings (for example -$30.00 for $10 a month versus $150 a year) means the annual plan is more expensive than paying monthly.
• Counting the saving as certain when you may cancel early. If you would stop using the service before month twelve, the monthly plan can cost less in practice even when the annual price is lower on paper.
• Leaving the monthly price at 0 because the service has a free tier. A monthly price of zero gives no result, since there is nothing to compare against.