Formula and example
How it is calculated
Yearly cost of monthly plan = monthly fee × 12; break-even months = annual fee / monthly fee
Worked example
€12 per month costs €144 over a year. An annual plan at €100 saves €44 when used for all twelve months.
Things to check
- Cancellation terms, service differences and price changes are excluded. The break-even point is also rounded up to whole payment months.
- Use one currency consistently. Examples use euros; the calculation works with any currency.