November 14, 2026

Yearly vs Monthly Billing: Is the Annual Discount on AI and Productivity Tools Worth It?

What yearly billing really saves on Otter, Fireflies, Typeform, Runway and Spline, with the math, and when paying monthly is the smarter choice.

Many AI and productivity tools give a discount when you pay for a year up front. The saving is real, but so is the commitment. Here is the math for five popular tools, and a simple rule for deciding. Prices are per user or seat, per month.

The math: what a year costs

[Otter](/deals/otter-up-to-51-off-with-yearly-billing): the Pro plan costs $101.88 a year on yearly billing instead of $203.88 on monthly billing, saving $102.
[Fireflies](/deals/fireflies-up-to-44-off-with-yearly-billing): the Pro plan costs $120 a year on yearly billing instead of $216 on monthly billing, saving $96.
[Typeform](/deals/typeform-save-30-with-yearly-billing): the Basic plan costs $336 a year on yearly billing instead of $468 on monthly billing, saving $132.
[Runway](/deals/runway-save-20-with-yearly-billing): the Standard plan costs $144 a year on yearly billing instead of $180 on monthly billing, saving $36.
[Spline](/deals/spline-up-to-20-off-with-yearly-billing): the Hobby plan costs $144 a year on yearly billing instead of $180 on monthly billing, saving $36.

When yearly billing makes sense

You have used the tool every week for at least three months.
The tool is part of a workflow that you or your team depend on.
You have checked the refund policy and the renewal price.

When monthly billing is smarter

You are still testing the tool, or only need it for a short project.
Your project or contract ends in a few months.
The category changes fast, and a better alternative may appear soon.

Free months instead of a percentage

Some tools express the discount as free months. HeyGen gives 2 months free with yearly billing, which is about 17% off a year, and Synthesia offers up to 4 months free, which is up to 33% off. Start monthly for the first month, then switch to yearly once you know you will keep using the tool, if the vendor allows it.

Frequently asked questions

### Can I get a refund on a yearly plan? It depends on the vendor. Check the refund window before you pay: some offer a money-back period of a few weeks, others none.

### Does the price go up at renewal? Often the next year is charged at the regular yearly price, which can be higher than your first-year offer. Note the renewal date and price when you buy.

### Are student discounts better? Some tools add one. For example, Reclaim gives students and educators an extra 50% off for 12 months. Ask before you pay full price.

More offers: AI Tools and Productivity.

The math: what a year costs

[Otter](/deals/otter-up-to-51-off-with-yearly-billing): the Pro plan costs $101.88 a year on yearly billing instead of $203.88 on monthly billing, saving $102.

[Fireflies](/deals/fireflies-up-to-44-off-with-yearly-billing): the Pro plan costs $120 a year on yearly billing instead of $216 on monthly billing, saving $96.

[Typeform](/deals/typeform-save-30-with-yearly-billing): the Basic plan costs $336 a year on yearly billing instead of $468 on monthly billing, saving $132.

[Runway](/deals/runway-save-20-with-yearly-billing): the Standard plan costs $144 a year on yearly billing instead of $180 on monthly billing, saving $36.

[Spline](/deals/spline-up-to-20-off-with-yearly-billing): the Hobby plan costs $144 a year on yearly billing instead of $180 on monthly billing, saving $36.