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Subscription vs Buy Break-even Calculator

Find the break-even point between subscribing and buying.

How it is calculated

The tool finds how many months it takes for a one-time purchase to cost less than paying a subscription. Each month you save the subscription fee minus whatever owning costs you monthly (the optional running-cost field, such as maintenance, storage or updates): monthly saving = subscription − ownership cost. Then months = purchase price / monthly saving, and years are months divided by 12. A blank ownership cost counts as zero. If the ownership cost is equal to or higher than the subscription, buying never pays off and the result is shown as ∞. Prices are in one currency per month. It assumes a constant subscription price and ignores inflation, interest on the money you tie up, resale value and discounts for annual billing.

Worked example

A tool costs $400 to buy, while the subscription is $15 per month. Owning it adds $3 a month in running costs. Monthly saving: 15 − 3 = $12. Break-even: 400 / 12 = 33.33 months, or 33.33 / 12 = 2.78 years. If you expect to use it for more than about 33 months, buying is cheaper; for a shorter horizon, subscribing wins. With no running cost, the same numbers give 400 / 15 = 26.67 months.

Try this example →

Common mistakes

  • Leaving out the ownership cost. If you must maintain, store or update the item, the real saving per month is smaller and break-even comes later than the price divided by the subscription suggests.
  • Comparing against the annual price. Enter the subscription per month; a yearly plan must be divided by 12 first.
  • Entering a price and a subscription that are not in the same currency or tax basis (one with VAT, one without).
  • Treating a break-even beyond your real usage as a reason to buy. If you will use the item for 12 months and break-even is 33, the subscription is cheaper.
  • Ignoring that the subscription price may change, and that a purchase may need replacing. The tool assumes both stay fixed.

About this calculator

This calculator finds the break-even point between paying a recurring subscription and making a one-time purchase: months to break even = purchase price / (monthly subscription cost − optional monthly cost of owning). Past that many months, the one-time purchase ends up cheaper than continuing to pay the subscription. If owning costs as much per month as the subscription, buying never breaks even (shown as ∞).

Consumers comparing software licences versus SaaS plans, streaming versus buying media, or leasing versus buying equipment use it to decide which option saves money given their expected usage horizon. Enter the purchase price, the subscription's monthly cost and, optionally, your monthly cost of owning to see exactly when buying wins.

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