An annual plan can have a lower advertised monthly rate while costing more for the time you actually use it. Enter the two prices and your expected months of use below. The calculator compares the full annual payment with the monthly payments you would make over that period. If a monthly offer starts at a different price, switch on the introductory-price option and enter its duration in whole billing months. Example figures are illustrations, not offers from a particular service.
Try your own numbers
Compare the total cost
Use one currency for both prices. These inputs stay in this page and are not saved or submitted.
Monthly plan · 6 months
108.00
Annual plan · paid upfront
120.00
Monthly plan: first three billed months 54.00 · first 12 billed months 216.00.
Monthly costs 12.00 less for your expected use.
Annual works out to 10.00 per month over a full year. It first becomes cheaper at 7 billed months.
Assumes the entered monthly renewal price stays unchanged after any introductory period, no refund of the annual payment, and monthly billing you can stop before the next period. Include known taxes and fees yourself. It does not predict unentered price changes or exchange fees. Three billing months are not necessarily 90 days.
Your quick checklist
- Enter the total annual charge, not its advertised monthly equivalent.
- Use the same currency and include known mandatory charges in both prices.
- Choose how many months you realistically expect to use the service.
- Check renewal pricing and cancellation terms separately.
In this guide
Step 01
Read the amount due today
A plan advertised as 10 per month, billed annually, usually means a single 120 payment for that year. The monthly equivalent is useful for comparison, but it is not a promise of twelve small payments. Enter 120 in the annual field. A monthly plan priced at 18 belongs in the monthly field as 18.
Write two figures beside your shortlist: the amount charged today and the amount due at the next renewal. Keep the billing period beside each number. A large number without its term is as misleading as a small number without its commitment. The calculator assumes a single annual payment and a monthly plan you can stop before another billing period.
Step 02
Use the break-even point carefully
The annual price divided by the monthly price gives the point where the two costs meet. For example, 120 divided by 18 is about 6.67 months. Six monthly payments total 108, so monthly is cheaper for six months. Seven payments total 126, making the 120 annual plan cheaper from the seventh billed month.
If annual costs exactly twelve monthly payments, there is no price saving during the first year. If annual costs more, it never becomes cheaper within that year. A lower annual price also does not create value from months you will not use. Consider uncertainty about your schedule, the service, and whether you will want to switch.
Step 03
Compare equivalent plans
Use prices for the same features and access level. A monthly basic plan and an annual premium plan are different products, even if the annual option has a lower monthly equivalent. Make a small comparison note with the plan name, first payment, renewal payment, included features and cancellation deadline.
Discounts can expire after the first term. If you expect to keep the service for a second year, repeat the comparison using the renewal rates. This calculator deliberately covers only the first year; it does not guess taxes, currency conversion, refunds or the cost of missing a cancellation deadline. For a monthly promotion, enter the introductory payment and number of introductory months yourself. A day-based trial needs a separate calendar check; three billed months are not necessarily 90 days.
Step 04
Work through an introductory offer
Suppose the monthly plan costs 5 for each of its first two billed months, then 18 per month, while an annual plan costs 120 upfront. The first three monthly payments total 5 + 5 + 18 = 28. The first year totals 5 + 5 + (10 × 18) = 190. For six months of use, the monthly total is 82; for nine months it is 136, so the annual plan first becomes cheaper in month nine. These are invented arithmetic examples, not current offers.
Use the amount charged for each month, not the total promotional charge, in the introductory field. An offer of 10 for two months belongs here as 5 per month only if it represents those two whole billing periods. This model compares totals; it does not model when a multi-month promotional payment is collected. If a trial ends after a number of days, check its exact end date with the biller instead of rounding it to a month.
Step 05
Make the decision reversible where possible
If you are uncertain about continued use, compare the extra monthly cost with the money you commit upfront. Paying a little more for a short period can be a reasonable way to avoid a large unused purchase. This is a budgeting trade-off, not a claim that monthly is always better.
Before paying, save the offer and renewal terms, locate the cancellation instructions and set your own reminder ahead of the deadline. The FTC recommends checking the details of trials and automatic renewals before providing payment information. Use the official checkout as the source for the current offer.
Choose using the total you expect to pay over your real period of use. Keep the renewal decision separate from the first purchase, and repeat the calculation if either price changes.
Common questions
Does the calculator store my prices?
The calculator keeps its input values only in the current page state. It does not save or submit those values. The site’s ordinary page analytics are separate.
Can I enter a currency other than dollars?
Yes. The arithmetic is currency-neutral. Enter both prices in the same currency; the results do not perform exchange-rate conversion.
Why does a discounted annual plan sometimes cost more?
The annual payment buys a full year. If you would only make a few monthly payments, their total can be lower than the annual charge.
Sources and scope
Prepared from the official guidance below and our own worked examples. These are general account and subscription checks; individual providers can use different terms and screens. This guide does not claim a test of a merchant’s paid account.