Monthly vs Annual Subscription: When Yearly Saves Money

A monthly vs annual subscription choice comes down to how long you keep the plan. In four US plans we recorded between 2022 and 2026, the monthly total became higher than the annual price from the 8th to the 11th payment. Before that point, paying monthly costs less.

How monthly and annual billing differ

Monthly billing charges a smaller amount every month and lets you stop at the end of any month. Annual billing charges one larger amount up front for a full year. In all four US plan pairs we have recorded, the annual price is lower than twelve monthly payments, but you commit the money before you know how much you will use the service.

The monthly and annual options of a plan often include the same features, with the billing period as the main difference. That is not guaranteed for every service, so the provider’s plan page is the place to confirm what each option includes. Our records hold prices only.

The practical differences come down to three things:

• Cash up front: annual billing takes a full year’s charge at once; monthly spreads the cost out.
• Total cost over a year: in our records, the annual price is the lower total if you keep the plan for the full year.
• Exit points: a monthly plan gives you a chance to stop every month; an annual plan gives you one renewal point a year.

What recorded US prices show for the same plan billed both ways

We have recorded both a monthly and an annual price for four US plans: Amazon Prime, Apple TV+, Microsoft 365 Personal and Microsoft 365 Family. The annual option is lower than twelve monthly payments in each case, but the size of the gap varies a lot.

The recorded prices

The Amazon Prime and Microsoft 365 rows are the latest prices we hold for those plans, not necessarily today’s prices. You can see the full record on our Amazon Prime US prices page and our page for Microsoft 365 plans.

Twelve monthly payments against the annual price

Amazon Prime and Apple TV+ shared the same recorded monthly price of $14.99, yet their annual prices differ, so the yearly saving is not the same. The two Microsoft 365 plans show the same percentage gap at different dollar amounts.

When paying yearly costs less in total

Paying yearly costs less in total once you would otherwise have kept paying monthly past the point where the monthly total becomes higher than the annual price. In our US records, that point is the 8th payment for Apple TV+, the 10th for Amazon Prime and the 11th for both Microsoft 365 plans. If you would stop before that payment, monthly billing costs less.

Reading the crossover point

The “monthly total higher from payment” column answers one question: how many monthly charges it takes before you have paid more than the annual price. For Apple TV+ US on August 28, 2026, from the 8th payment, the monthly total is higher than the $119 annual price. For the full year, the annual price was lower by 60.88 USD. Current figures are on our Apple TV+ US prices page.

For Amazon Prime US, using the prices last recorded on February 18, 2022, the monthly total is higher than the $139 annual price from the 10th payment, and over twelve months the annual price was lower by 40.88 USD.

For Microsoft 365 Personal and Family, with the annual prices recorded on January 16, 2025 and the monthly prices observed on January 17, 2025, the monthly total is higher than the annual price from the 11th payment. A later crossover means the annual option only pays off if you keep the plan for most of the year.

Limits of the comparison

These figures assume the monthly price stays the same for all twelve months. If a monthly price changes during the year, the comparison shifts. They also assume you use the plan without a break: someone who pauses a monthly plan for a few months pays for fewer months, which the twelve-payment totals do not reflect.

What you give up with an annual plan: flexibility

An annual plan trades flexibility for a lower total. You pay for twelve months at once, and leaving early usually means the money for the remaining months is already spent unless the provider’s terms say otherwise. A monthly plan costs more over a full year in our records, but each month is a fresh chance to stop.

That flexibility matters in a few common situations:

• Uncertain use: if you are not sure you will use a service all year, the monthly price buys the option to stop at a monthly crossover point you choose.
• Seasonal viewing: people often subscribe to a streaming service for one show or one season and then stop. Paying monthly for a few months can cost less than the annual price, as the crossover points above show.
• Changing needs: a household might outgrow a single-user plan or no longer need a family plan. A monthly plan makes that change easier to time.
• Price changes elsewhere in the market: a lower price at the start of an annual term does not adjust if a competitor or a different plan becomes cheaper during the year.

The annual plan also removes eleven billing events from the year, which some people prefer. Neither option is the right one for everyone; the crossover points show where the money side tips.

How refunds and mid-term changes differ by billing period

Refund and change rules are set by each provider and can differ between monthly and annual plans. With monthly billing, the amount at stake if you stop is at most one month’s charge. With annual billing, the amount at stake is larger, so the provider’s refund and cancellation terms carry more weight.

Refunds

Some providers offer a full or partial refund for an annual plan cancelled within a set window after purchase or renewal, and some do not. Terms can also differ depending on where you subscribed: directly with the provider or through an app store. Before paying annually, the provider’s help or terms page usually states whether unused months can be refunded.

Changing plans mid-term

Moving between plans during a billing period works differently by provider. Common approaches include:

1. Applying the change immediately and charging or crediting the difference.
2. Applying the change at the start of the next billing period.
3. Requiring you to end one plan before starting another.

With a monthly plan, the next billing period is never more than a month away, so a change that waits for renewal takes effect soon. With an annual plan, a change that waits for renewal could take most of a year. The account settings page usually shows when your current period ends and what happens if you switch.

Legal cancellation and refund rights are a separate topic and are not covered here.