How much Substack takes
Substack is free until you charge. Once you turn on paid subscriptions, it keeps 10% of what readers pay. Payments go through Stripe, which charges its own fees on top: at the time of writing, 2.9% + 30¢ per card payment plus a 0.7% billing fee on subscriptions.
The 30¢ hits cheap plans hardest. On a $5 monthly plan, fees take about 20%, while on an $80 yearly plan they're closer to 14%. That's one reason yearly plans help.
The formula
Paid subscribers = free subscribers × paid conversion. Revenue a month = monthly subscribers × monthly price + yearly subscribers × yearly price ÷ 12. You keep = revenue − 10% − Stripe's fee on each payment.
With 5,000 free subscribers at 3%, you have 150 paid. If 30% pick an $80 yearly plan and the rest pay $8 a month, that's $1,140 a month before fees and about $950 after, or about $11,400 a year.
What conversion rate to expect
Substack has said that 5% to 10% of free subscribers paying is a strong result. In practice, many newsletters land around 1% to 5%, and large general-interest lists often sit near the low end. Niche, useful or very personal writing tends to convert best.
Start with 2% to 3% if you're not sure, then use your real numbers once you've turned on payments.
Ways to earn more from the same list
A few things tend to move the numbers:
- Offer a yearly plan at about two months free, so fewer people cancel and fewer 30¢ fees apply.
- Add a founding member tier for readers who want to pay more.
- Give paid readers something clear: extra posts, the full archive, or a community thread.
- Grow the free list too, since paid subscribers come from it.
Frequently asked questions
How much does Substack take?
10% of paid subscription revenue, plus Stripe's fees of about 2.9% + 30¢ per payment and a 0.7% billing fee. All in, usually around 13% to 20%.
How much do you make with 1,000 paid subscribers on Substack?
At $8 a month, about $6,600 a month after fees, or roughly $79,000 a year. A mix of yearly plans brings it a little lower but steadier.
What is a good paid conversion rate on Substack?
Many newsletters see 1% to 5% of free subscribers pay. Substack calls 5% to 10% strong, and 10% is rare.
Is Substack free to use?
Yes, until you charge. Substack only takes its 10% from paid subscriptions, and free newsletters pay nothing.
Should I charge monthly or yearly on Substack?
Offer both. Monthly is easier to say yes to, while yearly plans cancel less and pay fewer fixed fees, so you keep more of each dollar.