Annual vs Monthly Calculator

Compare paying annually versus monthly.

Monthly price

$/mo

Annual price

$/yr

Results update as you type.

Annual savings

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Yearly cost if paying monthly—

Savings—

How it works

Subscriptions often offer a discount for paying annually instead of monthly, and this calculator shows exactly how much you save. You enter the monthly price and the annual price, and it returns what a year costs if you pay monthly, the amount saved by paying annually, and the percentage saved. The calculation multiplies the monthly price by twelve and subtracts the annual price. Annual plans commonly save 10 to 20 percent, effectively giving you one to two months free, which adds up across the many subscriptions people hold. Seeing the concrete savings helps you decide whether to commit to a year. There are trade-offs: paying annually costs more upfront and locks you in, so it makes sense only if you're confident you'll use the service for the full year — for something you might cancel soon, monthly is safer despite the higher rate. Also consider that money paid upfront can't earn interest elsewhere, though at typical savings rates this is minor compared to a 15 percent discount. Use this calculator across your subscriptions to find where annual billing is worth it and where flexibility matters more. It works for streaming, software, memberships, insurance, and any service offering both billing options. Enter the monthly and annual prices to see your savings.

Formula

Savings = (monthly price × 12) − annual price

Paying monthly for a year costs the monthly price multiplied by twelve. Subtracting the discounted annual price from that total gives the dollar savings from paying annually, and dividing those savings by the twelve-month cost gives the percentage you save by choosing the annual plan instead of the monthly one.

Source:Subscription pricing

We review all our tools from time to time to ensure accuracy.

Worked example

Monthly price:12Annual price:120

$12 × 12 = $144 if monthly; annual $120 saves $24 (16.7%).

How to use this calculator

1
Enter your values
Enter monthly price and annual price.
2
Adjust the options
Fine-tune any options to match your situation.
3
Read your result
Annual savings updates instantly as you type — no button to press.

Frequently asked questions

How much do I save paying annually?

Multiply the monthly price by twelve, then subtract the annual price. If monthly is $12, a year costs $144, and an annual plan at $120 saves $24 — about 16.7 percent. Annual plans commonly save 10 to 20 percent, effectively giving one to two months free compared to paying month by month.

Is paying annually always worth it?

Only if you'll use the service for the full year. Annual billing saves money but costs more upfront and locks you in, so if you might cancel soon, monthly is safer despite the higher rate. For services you're confident you'll keep, the annual discount is usually worth committing to; for uncertain ones, keep flexibility.

How much do annual plans typically discount?

Most annual subscriptions offer roughly a 10 to 20 percent discount versus monthly billing, often framed as two months free. The exact savings vary by provider. Calculating the actual difference, as this tool does, tells you the real discount rather than relying on marketing claims, so you can judge whether it justifies the upfront commitment.

What are the downsides of paying annually?

Paying a year upfront ties up more cash at once and commits you even if your needs change or a better option appears. Refunds for unused time may be limited. The money paid upfront also can't earn interest elsewhere, though at normal rates that is minor next to a meaningful discount. Weigh the savings against reduced flexibility.

Should I do this for all my subscriptions?

It's worth checking each one. Across streaming, software, memberships, and insurance, annual savings add up, but so does the upfront cost and lock-in. Use this calculator for each subscription you're confident you'll keep to capture the discounts, while keeping monthly billing for services you might cancel or are just trying out.