The short formula: monthly price × 12 = cost per year. Divide a yearly price by 12 to compare it with a monthly plan. Convert a weekly price with × 52 ÷ 12, and remember that paying every four weeks means 13 payments a year. Add everything up only after that.
First the list, then the maths
A total is only as good as the list behind it. Work through the guide how to find all your subscriptions first: Apple, Google Play, statements, direct debits, your phone bill and email. For each subscription, note the amount actually charged, how often and when it renews.
Don’t rely on a price list online. An older plan, a discount or a payment in another currency can mean you pay something different. For your budget, what leaves your account is what counts.
A formula for every billing cycle
The simplest way is to bring everything to a monthly figure:
- monthly: the amount as it is;
- yearly: amount ÷ 12;
- quarterly: amount ÷ 3;
- weekly: amount × 52 ÷ 12;
- every four weeks: amount × 13 ÷ 12;
- cost per year: monthly figure × 12.
A week is not a quarter of a month: a year has 52 weeks, about 4.33 per month on average. And paying every four weeks means 13 payments a year, not 12. Both mistakes make the total look smaller than it is.
A worked example with five subscriptions
The amounts are made up and don’t describe a typical household anywhere. They only show the method.
| Subscription | Payment | Per month | Per year |
|---|---|---|---|
| Video streaming | €12 / month | €12 | €144 |
| Music | €11 / month | €11 | €132 |
| Cloud storage | €30 / year | €2.50 | €30 |
| Digital newspaper | €39 / quarter | €13 | €156 |
| Fitness app | €7 / four weeks | €7.58 | €91 |
| Total | — | €46.08 | €553 |
€46.08per month
€553per year
€2,765over 5 years
To check: the yearly total divided by 12 must give the monthly total, here €553 ÷ 12 = €46.08. Because of the thirteenth payment, the €7 fitness app costs €91 a year, not €84.
The amounts in the example are freely chosen. To work with real prices, see for instance what Spotify Premium costs across Europe, where the monthly and yearly figures sit side by side for ten European countries.
What counts as part of the cost
Use the amount that is actually charged: VAT, service fees and currency conversion fees included. Keep one-off purchases, accessories and devices in a separate column, so you can see what recurs and what you paid once.
For a contract with a minimum term, the total price over the whole term matters, not the monthly price in the advert. An introductory price that rises after three months goes into the sum with both prices.
Yearly plan or monthly payments?
Divide the yearly price by the monthly price: the result is the number of months after which the yearly plan is cheaper. Example: €10 a month is €120 a year. If the yearly plan costs €90, the break-even point is nine months.
If you use the service for only five months, paying monthly costs €50 instead of €90. A yearly discount is only a saving if you really need the whole period you pay for.
Put money aside for yearly payments
A yearly subscription is charged in one go. Its monthly figure tells you how much to set aside each month: for €84 a year, that’s €7 a month. Then the payment won’t come as a surprise.
Free trials, discounts and refunds
A free trial costs nothing today but leads to a payment later. Note the date of the first charge and the price after it. Spread a temporary discount over the offer period and don’t keep using the introductory price for good.
A refund only lowers your cost once the money is back in your account. Keep the charge and the refund as separate lines, so you can later see whether a contract really ended.
Yearly cost shows the size, cost per use shows the value
The yearly total tells you how much a subscription weighs on your budget, not whether it’s worth it. A €16 monthly subscription costs €2 per use if you use it eight times, and €8 if you use it twice. How to judge that fairly is explained in is your subscription worth it?
Three totals for a good decision
- Your current monthly total: every subscription converted to a month.
- The next twelve months: with known renewals, price rises and offers that end.
- Your target: the total after confirmed cancellations or cheaper plans.
A planned cancellation is not a saving yet. The lower amount belongs in your budget once the cancellation is confirmed and no further payment arrives.
Common calculation mistakes
- multiplying a weekly price by 4 instead of by 52 ÷ 12;
- treating payments every four weeks as monthly payments;
- adding a whole yearly amount to the monthly total;
- using the list price instead of the actual charge;
- noting a free trial without the price that follows it.
Short answers
How do I convert payments every four weeks?
Count 13 payments a year: amount × 13 gives the yearly cost, divided by 12 the monthly figure. To the day it’s 365 ÷ 28 ≈ 13.04 payments; for a budget, 13 is enough.
What about payments in another currency?
Note the original price and the amount actually charged in euros. For the past, use the charge; for the future, mark it as an estimate, because exchange rates change.
Should I project five years ahead?
Only as a scenario with unchanged prices. For a decision, twelve months is usually enough, because prices, offers and your own needs change.