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Switching Savings Calculator: Is Switching Worth It?
Compare your old and new plans, sign-up bonus and switching time. Calculate first-year savings and how much you save per hour spent switching.
Last updated:
Example: the calculation with the default values
The defaults are example values, not an average. Enter your own numbers and press “Calculate” to run it with yours.
Worth doing. $600 per hour for 30 minutes of work.
| Currently per year | $599 |
|---|---|
| New per year | $299 |
| Saving per year | $300 |
| Switching bonus, one-off | $0 |
| Switching cost, one-off | $0 |
| In the first year | $300 |
| Your hourly rate for this | $600 |
Assumptions behind this calculation
- Threshold for a worthwhile switch: $50
- Above this hourly rate we call a switch worthwhile. That is our judgment, not a measurement.
- A switching bonus counts in the first year only. Folding it into the annual saving promises it every year.
How we calculate
The old and the new price per billing cycle are scaled to a year: monthly times 12, quarterly times 4, yearly times 1. The difference is the saving per year.
In the first year a sign-up bonus goes on top and a one-off switching cost comes off. That sum divided by your effort in hours is your hourly rate for the switch.
From $50 an hour we call a switch worthwhile. That is our judgment, not a measurement.
The reasoning behind these numbers, with sources, is in the article: Is Switching Plans Worth It? Savings vs. Your Time.
Frequently asked
Is switching providers worth it?
In this calculator’s example – $49.90 instead of $24.90 a month, 30 minutes of effort – you save $300 in the first year. That is $600 per hour of switching; from $50 an hour we call a switch worthwhile, and that is our judgment, not a measurement.
How are switching costs counted?
A one-off switching cost comes off the first-year saving, a sign-up bonus goes on top of it. From the second year only the price difference counts. In the default values both are zero.
Why does a switching bonus count in the first year only?
A switching bonus counts in the first year only. Folding it into the annual saving promises it every year.
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