Monthly vs Annual Billing Calculator
Enter the monthly price and the yearly price a service offers. You'll see how much the yearly plan saves, and how long you need to keep it for it to be the cheaper choice.
- 12 months, billed monthly
- $155.88
- Yearly plan, per month
- $10.00
- Break-even point
- 9.2 months
For 12 months of use: monthly costs $155.88, yearly costs $119.99. The yearly plan is cheaper.
How the comparison works
The calculator compares what you'd pay on each plan:
Saving = (monthly price × 12) − yearly price
Break-even = yearly price ÷ monthly price
The break-even point is the number of months of monthly billing that add up to one yearly payment. With the example above, $119.99 ÷ $12.99 = 9.2 months. Keep the service for longer than that and the yearly plan wins; cancel sooner and monthly billing would have been cheaper.
For your own usage, monthly billing charges only the months you keep the service, while a yearly plan is paid once per 12-month term. Taxes and promotional first-year prices are not included; enter the prices you will actually pay.
Questions and answers
How do I know if an annual subscription is worth it?
Divide the yearly price by the monthly price. The answer is the break-even point in months. If you are confident you will keep the service longer than that, the yearly plan is cheaper; if you might cancel sooner, monthly billing costs less.
How much do annual plans usually save?
It varies by service. A yearly price equal to one or two months free works out to an 8% to 17% saving (1 ÷ 12 and 2 ÷ 12), and some services offer no discount at all. Use the calculator with the two prices the service actually shows you.
What happens if I cancel an annual plan early?
Many services keep the full payment and simply let the plan run to the end of the year; others give prorated or full refunds within a set window. Check the refund terms before you pay, because the saving only exists if you use the plan long enough.
Why does 13 months of use show two annual payments?
A yearly plan is paid up front for each 12-month term. Keeping it for 13 months means paying for a second year, while monthly billing would charge you for just the 13th month.
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