Annual vs Monthly Subscription Break-Even Calculator

Method and assumptions

Monthly cost at cancellation = monthly price × months used; annual cost remains the entered prepayment. Full-year savings = 12 × monthly price − annual price. Crossover month is the first whole month when cumulative monthly billing reaches the annual price, if that happens within 12 months.

Worked example

At $12 monthly or $120 annual, full-year annual savings are $24 and the crossover is month 10. At month 7, monthly billing totals $84 versus $120 prepaid, so monthly costs $36 less under the no-refund assumption.

How to use the result

Use the cancellation-month result alongside the full-year comparison. It omits trial periods, partial refunds, price changes, fees, time value of money, and differences in service features or billing conditions.

Input meanings and limits

• Monthly subscription price: The amount billed for each used month.
• Annual prepayment: The one-time amount for a 12-month annual term.
• Month of cancellation or review: Choose 1–12 months; monthly charges are counted through this month.

Inputs accept finite, nonnegative values in the displayed ranges; percentages are bounded to 0–100% (with 99.99% maximum where division by the remaining share is used), and whole-unit or month fields require integers. Currency figures are shown in USD for convenience; enter values in one consistent currency. This is a planning worksheet, not financial, legal, tax, or accounting advice.

Related calculators

Budget planner and Savings calculator.