Substack Earnings Calculator
Estimate your newsletter revenue from paid subscribers and subscription price.
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Table of Contents
Comprehensive Substack Earnings Guide
What is Substack?
Substack is a platform for writers and creators to publish email newsletters and charge for subscriptions. Launched in 2017, it allows you to offer both free and paid tiers: readers can subscribe for free to receive some content, or pay monthly or annually for full access. Substack takes a percentage of paid revenue (typically 10%) plus payment processing fees. You keep ownership of your audience and can export your subscriber list at any time. The platform handles hosting, delivery, and payment infrastructure so you can focus on writing.
How Substack Payouts Work
Subscribers are charged automatically on their billing cycle (monthly or annual). Substack deducts its platform fee and Stripe payment processing; you receive payouts (e.g. monthly) to your connected bank account or via Stripe. Payout thresholds and timing depend on your Stripe account and region. Churn (cancellations) and new signups cause monthly revenue to fluctuate, so use averages over several months for planning.
- Paid subscribers: Readers who pay for your newsletter (monthly or annual).
- Free subscribers: Receive free posts only; no direct revenue but can convert to paid.
- Average price per month: Total paid revenue ÷ paid subscribers; use monthly equivalent if you offer annual plans (e.g. $70/year ≈ $5.83/month).
- Churn: Rate at which paid subscribers cancel; typical newsletter churn is a few percent per month.
Free vs. Paid Newsletter
Free tier
- No revenue from free subscribers
- Builds audience and trust
- Teaser content to convert to paid
- No Substack fee on free readers
Paid tier
- Recurring revenue (monthly or annual)
- Substack takes ~10% + payment processing
- Full or exclusive content for paying readers
- You set the price
Benefits of Using Substack
- Ownership: You own your subscriber list and can export it or move elsewhere.
- Simple setup: No need to manage payment or email infrastructure yourself.
- Discovery: Substack has a recommendation network and leaderboards that can surface your publication.
- Flexibility: Free and paid posts, podcasts, and discussion threads in one place.
Limitations and Considerations
- Platform fee and payment processing reduce net revenue; factor both into projections.
- Revenue depends on reader willingness to pay; conversion from free to paid varies by niche and quality.
- Email deliverability and spam filters can affect open rates and thus engagement.
- Substack's policies and fee structure can change; check current terms.
Revenue estimates are indicative only. Actual earnings depend on subscriber count, churn, payment failures, and fee changes. Always check Substack's current fee and payout policy.
Substack is well-suited for writers and creators who want recurring revenue from a dedicated audience. Use this calculator with your paid subscriber count and average price to estimate net earnings after the platform fee. Combine with other income (e.g. Patreon, speaking) for a full picture of your creator revenue.
Substack Fees & Payouts
Substack charges a percentage of paid subscription revenue. Payment processing (Stripe) is additional. Payouts are typically sent monthly once you pass the minimum threshold for your region.
| Item | Typical value |
|---|---|
| Substack platform fee | 10% |
| Payment processing (Stripe) | ~2.9% + $0.30 per transaction |
| Payout frequency | Monthly (varies by region) |
| Minimum payout | Depends on Stripe account and country |
Factors That Affect Earnings
Several factors influence your net Substack income. The table below summarizes the main ones.
| Factor | Effect |
|---|---|
| Subscriber count & churn | More paid subscribers and lower churn increase revenue |
| Pricing (monthly vs annual) | Annual often discounted; affects average revenue per subscriber |
| Payment failures | Failed renewals reduce the amount you receive |
| Free-to-paid conversion | Growing free list and converting a share boosts earnings |
- Subscriber count and churn: More paid subscribers and lower churn increase revenue.
- Pricing: Monthly vs. annual pricing affects average revenue per subscriber (annual often discounted).
- Payment failures: Failed renewals reduce revenue.
- Free-to-paid conversion: Growing your free list and converting a share to paid boosts earnings.
Tips to Maximize Revenue
- Offer clear value: Paid content should feel worth the price—exclusive analysis, early access, or deeper dives.
- Free tier strategy: Use free posts to build trust and tease paid content; limit free access to drive conversions.
- Pricing: Test monthly vs. annual (annual discount can improve retention and cash flow).
- Consistency: Regular publishing keeps subscribers engaged and reduces churn.
- Promote elsewhere: Drive traffic from Twitter, LinkedIn, or your blog to grow your free and paid list.
- Recommendations: Participate in Substack recommendations to get discovered by new readers.
Alternatives to Substack
Other platforms offer newsletter or membership monetization. Comparison depends on fees, features, and audience.
| Platform | Notes |
|---|---|
| Ghost | Self-host or Ghost(Pro); fixed fee; ownership |
| Beehiiv | Newsletter + ads; different fee model |
| Buttondown | Simple newsletters; lower cost at scale |
| Patreon / Ko-fi | Membership / tips; can complement a newsletter |
Substack Earnings Formula
The formula for estimating Substack revenue (after platform fee) is:
Practical Example
500 paid subscribers, $7/month average, 10% fee
Paid subscribers: 500
Average price: $7/month
Fee: 10%
Gross = 500 × 7 = $3,500
Net = 3,500 × (1 − 0.10) = $3,150 per month
Per year: $3,150 × 12 = $37,800