How this calculation works
This calculator compares the total out-of-pocket cash commitment of paying for a subscription upfront annually versus month-to-month over a one-year evaluation period.
Key formulas
- Monthly plan cost: Billed months multiplied by the monthly rate, plus any initial setup fee.
- Annual plan cost: Upfront annual payment minus any early cancellation refund, plus the cash interest forgone on the upfront payment at your entered savings rate.
- Break-even months: The net annual cost divided by the monthly rate, indicating how many months you must use the service before the annual discount covers the upfront payment.
- Cash opportunity cost: When you pay annually upfront, you forfeit interest on money that could have stayed in a high-yield savings account if you paid monthly.
Sources and benchmark dates
Consumer pricing benchmarks are based on standard streaming and software plans (Bureau of Labor Statistics Consumer Price Index for Information Services). Liquid cash return rates reflect FDIC National Deposit Rates for savings accounts. Checked on 2026-10-12.
A planning estimate based on your inputs and the assumptions shown. Actual costs and eligibility may differ.