Subscriptions

The Real Long-Term Cost of Monthly Subscriptions

Streaming, music, cloud storage, a gym app, maybe a meal kit — subscriptions rarely feel expensive individually. That's exactly what makes them easy to underestimate. Add them up and look at them over decades, and the picture changes.

The setup

Say your combined subscriptions run about $64 a month — a realistic total for a handful of streaming services, a couple of apps, and a membership or two. Here's what that same $64 a month looks like paid out versus invested instead.

$48k $32k $16k $0 0 5 10 15 20 25 30 YEARS Invested instead (today's $) Total paid into subscriptions

"Total paid" is the running sum of every subscription payment. "Invested instead" shows what that same monthly amount could be worth if invested, in today's dollars.

YearInvested instead (today's $)Total paid into subscriptions
10$9,755$7,680
20$26,908$15,360
30$59,603$23,040

Over 30 years, $64 a month adds up to $23,040 paid out. The same amount invested instead could be worth roughly $59,603 in today's dollars — more than double the total contributed.

Why subscriptions are different from a single purchase

A one-time purchase is a single decision you make once. A subscription is a decision you make automatically, every month, usually without reconsidering it. That's not necessarily bad — plenty of subscriptions are worth what they cost — but it does mean the "cost" of a subscription isn't really the monthly price. It's the monthly price multiplied by however many years it quietly renews.

A useful habit: the annual review

Since subscriptions compound in cost the same way investments compound in value, the simplest way to capture some of this gap is a once-a-year pass through your actual subscriptions — canceling what isn't earning its keep, and letting the freed-up amount go toward something that compounds in your favor instead.

Add up your own subscriptions and try them in the calculator's Subscription category.