Annual contract, paid monthly vs Month to month

[Sorontar]

Hello!

What is the point of month to month plan. Annual contract, paid monthly is cheaper. Even If you need Cretive Cloud for a month, then you can cancel Annual contract any time and pay less.
Where is the catch?

[John T Smith · Accepted solution]

When you have an annual contract with monthly payments you pay 1/2 of the remaining time as a fee if you cancel early... cancel 6 months early and you pay 3 months as a fee

You may cancel the higher price monthly contract at then end of any contract month... with no fee

[Nancy OShea]

Annual plans require a 12 month commitment.  And your rate is guaranteed for the entire year.

Month-to-month plans do not require any commitment.   You can cancel anytime without incurring a penalty fee -- good for people who only need the app for 1-3 month projects.  But the rate is subject to increase.

Different plans for different users.

[John Waller]

Even If you need Cretive Cloud for a month, then you can cancel Annual contract any time and pay less.
Where is the catch?

The catch is the early termination fee on the annual contract when you cancel before 12 months expires.

Example scenarios, in the US, you will normally pay (excluding special offers):

Cancel After	Payment on Annual Plan inc Early Termination Fee	Payment on Month-by-Month Plan
1 month	$  344.44	$    79.49
3 months	$  397.43	$  238.47
6 months	$  476.91	$  476.94
9 months	$  556.40	$  715.41
12 months	$  635.88	$  953.88

< 6 months: Month by Month is cheaper

> 6 months: Annual plan is cheaper

[Sorontar]

Ok thanks for good answers.