A large annual discount is useful only if you will use the service long enough and understand the exit terms. Compare both prices over the same period, then identify the actual contract: month-to-month, annual prepaid, or annual commitment billed monthly. The figures below are fictional and are a worksheet, not an interpretation of any provider's agreement.
Compare monthly and annual subscriptions
Assumes a genuine month-to-month plan and an annual prepayment without unused-period refunds. Do not use for annual commitments billed monthly.
These are fictional example values. Replace them with values you have checked.
Assumes a genuine month-to-month plan and an annual prepayment without unused-period refunds. Do not use for annual commitments billed monthly.
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- Place monthly and annual prices together
- Divide annual by monthly
- Check term and refunds
- Check next renewal price
Calculate a simple break-even point
Let M be the monthly fee and A the upfront annual price. Divide A by M to estimate the number of months at which costs match. If M is KRW 12,000 and A is KRW 108,000, the break-even point is nine months. Five months monthly costs KRW 60,000 versus KRW 108,000 prepaid with no refund; twelve months costs KRW 144,000 monthly versus KRW 108,000 annual, a KRW 36,000 difference.
The calculation assumes the same features, stable prices and taxes, and no refund of unused annual time. A prorated refund, trial, promotion or price increase changes the answer. Your likely months of actual use matter more than the advertised percentage off.
Monthly billing need not mean month-to-month
At checkout, distinguish a rolling monthly contract, an annual prepayment and a one-year commitment charged in monthly installments. The US FTC has described a case in which 'annual paid monthly' was mistaken for a freely cancellable monthly plan. Billing frequency and minimum commitment belong in separate rows of your comparison.
Find the midterm cancellation fee, any refund for unused time and the date access ends. Payments through an app marketplace may have a different cancellation path. Provider terms and local law govern your contract; the FTC example is not a worldwide legal rule.
Repeat the calculation at renewal
Put the introductory price and the next renewal price side by side. The FTC advises checking whether an automatic renewal amount differs from what you expected, especially after a promotional rate. A deal in year one need not remain a deal in year two.
Save the plan name, contract period, refund clause and renewal date before paying. Keep card numbers out of your worksheet. If an essential term is unclear, ask the seller for the exact amount and exit process before buying.
A worked example
A fictional service costs KRW 12,000 per month or KRW 108,000 prepaid for a year. If you expect to use it for six months and cannot recover unused annual time, monthly would cost KRW 72,000. For ten months, monthly would be KRW 120,000 and annual KRW 108,000. Taxes and actual cancellation terms could change the result.
Common questions
If I pay every month, is it a monthly plan?
Not necessarily. It may be an annual commitment billed monthly. Check the minimum term and exit fees.
Is annual always cheaper after month nine?
Only under the stated fictional prices and no-refund assumptions. Recalculate for the actual contract.
Will the promotional price renew?
Not necessarily. Verify the next renewal amount separately.
Official sources checked
This is general information; individual circumstances and product or agency instructions may differ.