What is Monthly Subscription?
Definition
A subscription plan that charges the user once per month, offering flexibility to cancel at any time.
Understanding Monthly Subscription
Monthly subscriptions are the most common billing frequency. They offer maximum flexibility since you can typically cancel at any time without losing a large upfront payment. However, monthly plans are usually more expensive per-month than annual alternatives.
They are ideal when trying a new service, using a service seasonally, or when you need the flexibility to cancel on short notice. The average person underestimates their monthly subscription spending by 2-3x.
Related Terms
Billing Cycle
The recurring time period between billing dates for a subscription service, such as monthly, quarterly, or yearly.
Annual Subscription
A subscription plan billed once per year, typically offering a discount compared to the equivalent monthly pricing.
Recurring Billing
An automatic payment system that charges a customer at predetermined intervals for ongoing access to a product or service.