Substack Revenue Calculator — Net Income After Fees

Substack's 10% is the real price — but there's a nuance

Between the 10% platform fee and ~3% Stripe processing, Substack keeps roughly 13–15% of gross. On 500 subscribers at $8 that's about $4,000/month gross, $3,400 net — a meaningful cut, though still far better than ad-supported models at the same audience size.

The counterpoint: 10% buys hosting, email delivery, the recommendation network (which drives a large share of growth for most publications) and a payment stack you'd otherwise assemble yourself. Beehiiv's flat $49–99/month can beat Substack's percentage past ~$1,000/month of paid revenue — the math flips faster than people expect.

The annual-plan effect on cash flow

Annual subscribers pay ~10 months' price upfront. That's a cash-flow weapon — one annual sub delivers 10 months of revenue today — but it also means churn is invisible for a year and refunds cluster at renewal. Model your annual share honestly; most newsletters sit at 20–40%.

What 'paid conversion' usually looks like

Industry rule of thumb: 5–10% of free subscribers convert to paid. 5,000 free subs at 7% = 350 paid. At $8/month that's ~$2,400 net — which is why list growth, not fee optimization, is the real lever until you're past ~2,000 paid subscribers.

Frequently asked questions

How much does Substack take from paid subscriptions?

10% platform fee plus Stripe processing (~2.9% + $0.30 per transaction) — roughly 13–15% of gross combined.

How much do I keep from a $8/month subscriber?

About $6.67 — Substack takes $0.80, Stripe takes ~$0.53.

Is Substack or Beehiiv cheaper?

Beehiiv's flat monthly fee beats Substack's 10% once paid revenue exceeds roughly $500–1,000/month, but Beehiiv lacks Substack's recommendation network that drives free growth.

What percentage of free subscribers go paid?

Typically 5–10% for engaged newsletters. Niche B2B lists convert higher; general interest lists lower.