GLOSSARY · BUDGETING, SPENDING & SAVING
Cost per use
What a subscription or membership costs each time it is actually used: the price for a period divided by the number of uses in that period. Comparing it with the price of a single use, rental or pass shows whether the flat-rate plan is worth it. People tend to overestimate how often they will use a flat-rate plan, so counting real uses matters.
Also called: cost per visit, price per use
FORMULA
Cost per use = monthly price ÷ uses per month; break-even uses = monthly price ÷ price of one use
COMPUTE IT WITH YOUR NUMBERS
LEARN IT PROPERLY
CHAPTER · SUBSCRIPTION & RECURRING COST OPTIMIZATION · DEEP DIVEJudging What Each Subscription Is WorthCHAPTER · SUBSCRIPTION & RECURRING COST OPTIMIZATION · DEEP DIVEDowngrading, Free Tiers and Smarter PlansRELATED TERMS
SOURCES
- Paying Not to Go to the Gym. DellaVigna & Malmendier, American Economic Review, 2006.