Newsletter Platform Cost Calculator
Compare newsletter platform costs across Substack, Beehiiv, ConvertKit, and Mailchimp. Enter values for instant results with step-by-step formulas.
Formula
Monthly Cost = Base Fee + (Revenue x Platform Fee %) + Payment Processing Fees
Each platform has different pricing models. Some charge flat monthly fees based on subscriber count, while others like Substack take a percentage of paid subscription revenue. Payment processing fees (Stripe/PayPal) apply on top of platform fees for paid subscriptions.
Worked Examples
Example 1: Growing Creator Newsletter Comparison
Problem: A creator has 8,000 free subscribers and 200 paid subscribers at $8/month. They send 4 emails per month and earn $300/month from sponsorships. Compare platform costs.
Solution: Paid sub revenue = 200 x $8 = $1,600/month\nTotal revenue = $1,600 + $300 = $1,900/month\n\nSubstack: 10% of $1,600 = $160 + Stripe fees ($46.40 + $60) = $266.40\nBeehiiv (Growth): $49/month flat\nConvertKit (Creator): $79/month flat\nMailchimp (Standard): $51/month flat\n\nNet revenue: Substack $1,633.60 | Beehiiv $1,851 | ConvertKit $1,821 | Mailchimp $1,849
Result: Beehiiv saves $217/month vs Substack for this creator. Annual savings: $2,609.
Example 2: Small Newsletter Just Starting Out
Problem: A new creator has 2,000 subscribers, sends weekly (4 emails/month), no paid subscribers yet, and earns $100/month from sponsors.
Solution: No paid subscription revenue, so percentage-based fees do not apply.\n\nSubstack: $0/month (free for free newsletters)\nBeehiiv: $0/month (free tier covers up to 2,500 subs)\nConvertKit: $29/month (free tier only up to 1,000)\nMailchimp: $13/month (free tier only up to 500)\n\nNet revenue after platform cost:\nSubstack: $100 | Beehiiv: $100 | ConvertKit: $71 | Mailchimp: $87
Result: Substack and Beehiiv are both free at this stage. Save $348-$156/year vs paid platforms.
Frequently Asked Questions
How much does it cost to run a newsletter?
Newsletter costs vary dramatically based on your subscriber count, sending frequency, and chosen platform. For small newsletters under 1,000 subscribers, many platforms offer free tiers that include basic features. As you grow to 5,000-10,000 subscribers, expect monthly costs between $30-100 depending on the platform. At 25,000+ subscribers, costs can range from $100-300+ per month. Beyond platform fees, consider costs for custom domains, design tools, and any third-party integrations. The total cost of running a newsletter also includes your time for content creation, which is often the largest hidden cost for solo operators.
Is Substack free to use for newsletter creators?
Substack is technically free to use if you only send free newsletters and never collect paid subscriptions. There are no monthly fees, subscriber limits, or sending limits on the free tier. However, if you enable paid subscriptions, Substack takes a 10% cut of your gross revenue plus Stripe payment processing fees of approximately 2.9% plus 30 cents per transaction. This means on a $10 monthly subscription, Substack takes $1.00 and Stripe takes about $0.59, leaving you with $8.41. For creators with significant paid subscription revenue, this percentage-based model can become expensive compared to flat-rate platforms like Beehiiv or ConvertKit.
Which newsletter platform is best for beginners?
For beginners, Substack and Beehiiv are the most popular starting points because both offer generous free tiers with no subscriber limits or sending restrictions. Substack excels for writers who want a simple publishing experience with built-in discovery features and a network effect that helps new newsletters get found. Beehiiv offers more growth and monetization tools on its free plan, including referral programs and basic analytics. ConvertKit is ideal if you plan to sell digital products or courses alongside your newsletter because it includes landing pages and commerce features. The best choice depends on whether you prioritize simplicity, growth tools, or monetization flexibility.
How do newsletter platform costs scale with subscriber growth?
Most newsletter platforms use tiered pricing that increases as your subscriber count grows, though the models differ significantly. Mailchimp and ConvertKit charge based on total contacts including unsubscribed ones in some cases, which means costs can increase even without active growth. Beehiiv charges flat monthly rates per tier with generous subscriber ranges within each tier. Substack charges nothing based on subscribers but takes a percentage of paid subscription revenue. As you approach 25,000-50,000 subscribers, the cost differences between platforms can reach hundreds of dollars per month, making it important to project costs at your expected growth trajectory rather than just current size.
Should I use a free or paid newsletter platform?
Free tiers work well when starting out, but paid plans unlock critical features for growth and monetization. Free plans typically lack advanced automation, A/B testing, detailed analytics, and priority support. As your newsletter becomes a business generating revenue, the features in paid plans like audience segmentation, advanced automations, and custom branding often pay for themselves through improved engagement and conversion rates. A good rule of thumb is to upgrade to a paid plan once your newsletter generates enough revenue to cover the cost three times over, ensuring the platform cost stays under 33% of your revenue from the newsletter.
What hidden costs should I watch for with newsletter platforms?
Several costs catch newsletter creators off guard beyond the advertised monthly price. Email overage charges apply on some platforms when you exceed monthly sending limits. Payment processing fees from Stripe or PayPal add 2.9-3.5% plus per-transaction fees on every paid subscriber payment. Migration costs arise when switching platforms because importing subscribers often results in 10-30% list loss from re-confirmation requirements. Premium template or design costs, custom domain email authentication setup, and third-party integration fees for CRM or analytics tools can add up quickly. Some platforms also charge extra for removing their branding or adding team member seats.