How to calculate the yearly cost of your subscriptions

A monthly price is easy to recognise but difficult to compare with a weekly gym membership, a four-weekly delivery or an annual software plan. Convert each price to a yearly figure first, then add the figures in the same currency.

Worked examples

• £4.99 a month × 12 = £59.88 a year.
• £12.99 a month × 12 = £155.88 a year.
• £18 every four weeks × 13 = £234 a year.
• £30 every quarter × 4 = £120 a year.

A four-weekly charge happens 13 times in a 52-week year, not 12. Treating it like a monthly price would understate the yearly total.

Add the subscriptions together

Once each recurring charge has a yearly figure, add those figures to get the total. Three monthly subscriptions priced at £4.99, £7.99 and £12.99 cost £59.88, £95.88 and £155.88 a year: £311.64 altogether.

Divide the yearly total by 12 if you also want one monthly-equivalent figure. This is useful for planning, but it does not change when each provider will actually bill you.

Handle prices that can move

• Use the price you currently pay, not an advertised price for new customers.
• Record a free trial's future paid price separately from its £0 trial period.
• Keep different currencies separate unless you use a current exchange rate and allow for card fees.
• Include required add-ons if you cannot use the service without them.
• Check whether VAT or another tax is already included in the displayed charge.

Cost is only the first comparison

A higher yearly cost is not automatically poor value. Record how often you use each service, whether somebody else relies on it, what replacing it would cost and whether a notice period applies. The total tells you what deserves attention; it does not make the decision for you.