How the break-even point is found
An annual plan is a single upfront payment; monthly billing is a running total that grows by the monthly price each month. The break-even point is the number of months of monthly billing whose running total equals the annual price — pay for more months than that within the year, and the annual plan was the cheaper choice.
- Monthly price — the price billed each month
- Annual price — the price billed once for the year
More detail
Why the break-even isn't always a round number
At 10,000 won a month and a 96,000 won annual plan, the break-even point is 96,000 ÷ 10,000 = 9.6 months — meaning if you'd stay subscribed for 10 or more months of the year on monthly billing anyway, the annual plan comes out cheaper. Stop before 9.6 months of monthly billing and paying monthly would have cost less.
Subscription tip. If your break-even point is higher than 12 months, the annual plan is never the cheaper option no matter how long you keep the subscription — that only happens when the annual price isn't actually discounted below 12 months of the monthly rate.
Frequently asked questions
A service costs 10,000 won monthly or 96,000 won yearly — how much do I save going annual?
12 months of monthly billing would cost 120,000 won, so the annual plan at 96,000 won saves 24,000 won — as long as you'd have kept the subscription for the full year anyway.
How many months do I need to use it before the annual plan pays off?
Divide the annual price by the monthly price: 96,000 ÷ 10,000 = 9.6 months. If you're confident you'll stay subscribed at least that long within the year, the annual plan is cheaper; if you might cancel sooner, monthly billing risks less.
What if the annual price isn't actually cheaper than paying monthly?
Then the break-even point comes out to more than 12 months, which is impossible to reach within a single year — in that case monthly billing is cheaper no matter how long you subscribe, and the annual plan offers no savings.
Does this account for canceling a monthly plan early?
No — it only compares the full 12-month monthly total to the annual price. If you'd cancel a monthly subscription after just a few months anyway, monthly billing can still be the better choice even when the break-even point looks favorable for the annual plan.