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Monthly or annual subscription: which should you choose?

The answer

Divide the annual price by the monthly price: you get the number of months from which annual costs less. If you are fairly sure you will use the service longer, pay yearly; if you are still testing, if your need may change or if cash is short this month, stay monthly. Verified example: Squarespace Basic costs CHF 21/month1 monthly or CHF 180/year2 yearly — annual wins from the ninth month of use.

Work out my costs ↓

Facts checked on · Updated · Market Switzerland

This analysis is available in French and English.

In brief

The trade-off
Annual buys a lower price with your freedom to leave; monthly buys the freedom to leave with a higher price.
Who it is for
Individuals, freelancers and small businesses choosing how to pay for software, a website or an online service.
The options
Do not subscribe (for now) · Pay monthly · Pay yearly
Facts checked on
23 Oct 2026

A service lets you pay monthly or yearly, with a discount for yearly, and you do not know whether you will use it long enough for the discount to be worth the commitment.

The comparison

The comparison

Ratings from 0 to 4, from the point of view of someone in your situation — higher is better. The reasoning behind each rating is in the analysis.

The comparison
CriterionNothingMonthlyAnnual
You have the serviceWhether the need is covered.poor (0/4)excellent (4/4)excellent (4/4)
Cost per month of useThe price per month in which you actually use the service.excellent (4/4)adequate (2/4)excellent (4/4)
FlexibilityBeing able to stop or change plan without losing money.excellent (4/4)excellent (4/4)limited (1/4)
Money up frontThe amount paid in one go.excellent (4/4)excellent (4/4)limited (1/4)
Commitment riskWhat you lose if your need changes along the way.excellent (4/4)excellent (4/4)limited (1/4)

The options

Do not subscribe (for now)

Wait, use a free version or an alternative you already pay for.

For

  • No spending
  • No commitment
  • Time to check you really need the service

Against

  • You do not have the service
  • Free versions often have limits that cost time
Best for
An uncertain need or a sufficient free alternative.
Cost
CHF 0.

Pay monthly

Pay every month, and stop as soon as the service is no longer useful.

For

  • You only pay for the months used
  • A small amount up front
  • Ideal for testing or a temporary need

Against

  • The highest price per month
  • Small monthly amounts are easy to forget
Best for
A trial, a temporary project, or a need that may change.
Cost
The monthly price × the months actually used.

Pay yearly

Pay twelve months in advance for a discount.

For

  • The lowest price per month
  • One payment a year to manage
  • Sometimes extras included (a free domain for the first year at Squarespace, for example)

Against

  • The year is paid even if you stop earlier
  • A larger amount up front
  • Refunds on stopping are rarely provided — read the terms
Best for
A tool you already use and will need all year.
Cost
The annual price, paid up front for every year started.

The analysis

The tipping point: annual price ÷ monthly price

The calculation is a single division. Squarespace Basic: CHF 180 a year ÷ CHF 21 a month ≈ 8.6 months. If you keep the site at least nine months, annual costs less; over twelve months it saves you CHF 72 (CHF 252 monthly against CHF 180 yearly, excl. VAT).

Shopify Basic: CHF 29/month3 monthly, or CHF 21 a month billed yearly — CHF 252 a year against CHF 348 paying monthly for twelve months. Same reasoning for the tipping point: 252 ÷ 29 ≈ 8.7 months.

Both examples are prices checked on the vendors’ pages on 23 October 2026, excl. VAT. They change: use your own service’s prices in the calculator.

The real question: how many months will you use it?

The annual discount is only a saving if you use the service beyond the tipping point. For a tool built into your work for months, that is likely; for a tool you are discovering, much less so. A good habit: pay monthly during the trial, then switch to annual once the use is settled.

Before paying yearly, read two things in the terms: what happens if you stop mid-year (refund or not), and whether renewal is automatic.

The costs

Monthly or annual: what you will actually pay

Pre-filled with Squarespace Basic (verified prices, excl. VAT). Replace with your service’s prices and the months you will use it.

The two prices
CHF/month

Verified price · 23 Oct 2026

CHF/year

Verified price · 23 Oct 2026

Your use
months

Assumption — Your honest estimate — it decides.

Total

  • MonthlyCHF 252
  • AnnualCHF 180

Cheapest Annual

Breakdown

Monthly

Monthly payments Verified price
CHF 252
Total
CHF 252

Annual

Years paid up front Verified price
CHF 180
Total
CHF 180

What this calculation shows

  • What you will pay with each plan for your period of use.
  • The month from which annual becomes cheaper.

What it does not prove

  • How many months you will really use the service.
  • A guaranteed saving: prices and terms change.
  • Your service’s refund terms.

Limits of this page

  • This is not financial advice: it is a cost comparison with your figures.
  • The Squarespace and Shopify examples are prices excl. VAT checked on 23 October 2026; they change and may depend on the billing country.
  • The calculation assumes a year started is owed in full with no refund: check your service’s terms.
  • The number of months of use is your estimate: it is the most uncertain input.

What we do not know

The most uncertain part: how many months you will really use the service. Vary that figure in the calculator — if annual only wins in the best case, stay monthly.

Frequently asked questions

  • After how many months is an annual subscription worth it?

    Divide the annual price by the monthly price. For Squarespace Basic (CHF 180 a year, CHF 21 a month, excl. VAT), annual becomes cheaper from the ninth month of use.

  • Can an annual subscription be refunded?

    That depends entirely on the service’s terms. Many do not refund a year already started: read them before paying.

  • Should I test monthly and then switch to annual?

    Often yes: the trial costs a little more, but you only commit for a year once the use is settled.

Sources and method

Every fact on this page points to a source read on the date shown. Prices and availability are re-checked at least every 90 and 120 days.

  1. Squarespace Basic billed monthly: CHF 21 per month excluding VAT.

    verified · read on

    Text read on the source
    "Basic — Monthly","priceCurrency":"CHF","price":"21.00"

  2. Squarespace Basic costs CHF 180 per year excluding VAT when paid annually (CHF 21 per month when billed monthly).

    verified · read on

    Text read on the source
    "Basic — Annually","priceCurrency":"CHF","price":"180.00" / "Basic — Monthly" … "21.00" — Prices listed on our website don’t include VAT.

  3. Shopify Basic costs CHF 29 per month billed monthly (CHF 21 per month billed yearly); VAT is added to Shopify fees for a Swiss store.

    verified · read on

    Text read on the source
    Pay monthly | CHF29/mo … Pay yearly | CHF21/mo — If your store is located in Switzerland, then you’re charged […] VAT on your relevant Shopify fees.

  4. Annual Squarespace plans include one year of free domain registration; an existing domain can be attached to any plan.

    verified · read on

    Text read on the source
    All Squarespace website plans purchased for an annual term include one (1) year of free domain registration… you can attach unlimited domains to any website plan

How this page is made

Research and writing
Danilson Ramos
Review
no external review
What this page adds
A calculation of the month from which annual billing costs less, based on your real months of use rather than a full year, illustrated by two verified Swiss price pairs.
An error?
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No vendor mentioned pays to appear here, and no link on this page is an affiliate link. What Bynilson sells is labelled as such and plays no part in the recommendation rules.

Research and writing assisted by AI tools; every fact was read on its source on the date shown, and the decision rules are written and tested by hand.

Read the method →

What next?

Useful steps whatever you decide.

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