How to Audit Your Subscriptions and Stop Wasting Money
The average American spends over $200 per month on subscriptions, with studies showing that most people underestimate their subscription spending by 2-3x. Even worse, research indicates that 84% of people have forgotten about at least one subscription they're paying for. A proper subscription audit can save you hundreds of dollars per year.
This calculator helps you perform a thorough audit by evaluating each subscription based on actual usage, not just whether you "might" use it someday.
Understanding Subscription Value
Not all subscriptions are created equal. A $15/month streaming service you use 30 hours per month costs just $0.50/hour - excellent value. That same service used only once per month costs $15/use - likely not worth it. This calculator helps you see the true cost of each subscription relative to how much you actually use it.
Cost Per Hour Benchmarks
- Excellent Value: Under $0.50/hour - definitely keep
- Good Value: $0.50 - $1.50/hour - worth keeping for most people
- Fair Value: $1.50 - $3.00/hour - consider if there are cheaper alternatives
- Poor Value: Over $3.00/hour - probably should cancel unless essential
Usage Frequency Guidelines
For subscription services, there are general guidelines for what constitutes "enough" usage to justify the cost:
- Streaming Services: At least 8-10 hours/month to justify typical costs
- Software Subscriptions: At least 4-5 uses/month for general software
- Fitness Apps/Gyms: At least 4 visits/sessions per month
- News/Media: At least 2-3 hours reading/viewing per month
Red Flags in Your Subscription Audit
Watch for these warning signs that indicate a subscription should be cancelled:
- Haven't used the service in 30+ days
- Cost per use exceeds buying the content/service individually
- Duplicate services (multiple streaming, multiple cloud storage)
- Services you signed up for "just in case"
- Free trials you forgot to cancel
- Services where you only use a small fraction of features
How to Conduct an Effective Audit
Step 1: Gather All Subscriptions
Review your credit card statements, bank statements, and app store purchases for the past 3 months. Many people discover subscriptions they completely forgot about during this step.
Step 2: Track Actual Usage
For one month, actively track how often you use each service. Don't estimate - actually count. Screen time reports on phones can help with app-based subscriptions.
Step 3: Calculate Value
Use this calculator to compute the cost per hour and cost per use for each subscription. Compare against the benchmarks above.
Step 4: Make Decisions
Based on the audit results, categorize each subscription as "Keep," "Cancel," or "Review." For "Review" items, consider alternatives or downgrade options.
Maximizing Value from Subscriptions You Keep
For subscriptions that pass your audit, consider these strategies to maximize value:
- Family Plans: Share costs with household members
- Annual Billing: Often saves 15-20% vs monthly
- Student/Senior Discounts: Many services offer reduced rates
- Bundle Deals: Services like Apple One or Disney Bundle can save money
- Negotiate: Call to cancel and often get retention offers
Setting Up Ongoing Monitoring
An audit isn't a one-time event. Set up quarterly reminders to review your subscriptions. Usage patterns change - a service you loved six months ago might be gathering digital dust now.
Consider using subscription management apps or setting calendar reminders before renewal dates to actively decide whether to continue each service.