Guide
How to calculate subscription cost per year
Put every recurring bill on the same time scale. That makes monthly and annual plans easier to compare and reveals the full cost of your subscription stack.
The formula
Yearly subscription total = monthly plans × 12 + annual plans.
To compare everything monthly, divide each annual plan by 12 before adding it to the monthly plans.
Worked example
Three $10 monthly services cost $360 per year. Add annual plans costing $60 and $120: the full yearly total is $540, equal to an average of $45 per month.
Common mistakes
- Counting an annual plan as both monthly and yearly.
- Leaving out app-store, cloud, phone, or professional subscriptions.
- Comparing promotional prices without noting when they expire.
- Mixing subscriptions with behavior-based spending such as coffee.
Add up your subscriptions
Use the subscription cost calculator to normalize monthly and yearly plans. For purchases that repeat by habit rather than invoice, use the habit cost calculator.