Cable vs Streaming Cost Calculator: What Will You Actually Save?
Find out exactly how much you'll save by cutting cable. Enter your cable bill and streaming needs to calculate your real monthly and annual savings.
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The average American cable TV bill is $83/month — but that number alone doesn't tell you what you will save. Someone with a $50 cable promotional rate and an expensive internet bundle might save less than they think. Someone paying $150+ is leaving real money on the table.
Let's break down the actual math.
Step 1: What Are You Actually Paying for Cable Now?
Look at your most recent cable bill and find:
| Line item | Typical range | |-----------|--------------| | TV programming | $40-80 | | Equipment rental (cable box) | $10-25/month | | DVR fee | $10-20/month | | HD technology fee | $5-20/month | | Regional sports surcharge | $5-15/month | | Broadcast TV surcharge | $10-25/month | | Taxes and fees | $10-30/month | | Total typical cable bill | $80-180/month |
The fees column is where cable companies hide the real cost. A promotional $49.99/month cable plan commonly becomes $85-100/month after all fees are added. Many customers don't notice until they compare the promotional price to the actual bill.
Step 2: Calculate Your True Cable Cost
The formula:
True monthly cable cost = (Annual cable bill) ÷ 12
Check your annual total, not just your current month. Promotional rates expire. Your "current" rate may be 60-90 days from a price increase.
Also add:
- Equipment purchase or rental costs
- Installation fees (one-time but amortized over your time as a customer)
- Annual rate increase (cable prices have increased ~4-8% per year historically)
Step 3: Build Your Streaming Alternative
The key insight: you don't need to replace every channel you have — just the ones you actually watch.
The average household actively watches 12-17 channels despite having 150+. Cable charges you for the full bundle even if you only watch a fraction of it.
Build your streaming lineup based on what you watch:
Tier 1: Free (Cost: $0/month)
- Antenna → ABC, CBS, NBC, Fox, PBS, local channels ($25 one-time)
- Tubi → 50,000+ movies and shows, free with ads
- Pluto TV → 250+ live channels, free with no login
- Peacock Free → NBC content, some sports, originals
- Plex → 50,000+ titles + 500 live channels
Tier 2: Essential (Cost: $7-22/month)
- Netflix → $7/month (with ads), $17/month (HD, no ads)
- Disney+ → $8/month (with ads)
- Max → $10/month (with ads)
- Peacock Premium → $8/month
Tier 3: Live TV (Cost: $40-73/month)
- Sling Orange → ~$40/month, ESPN + 35 channels
- YouTube TV → ~$73/month, 100+ channels, full replacement
Sample Cost Comparisons
Household A: Light TV watcher, mostly Netflix and local news
| Cable | Streaming alternative | |-------|----------------------| | Basic cable + internet: $95/month | Netflix ($17) + antenna ($0 ongoing) + internet ($50/month) = $67/month | | Annual savings: $336 | |
Household B: Sports fan, needs ESPN and live channels
| Cable | Streaming alternative | |-------|----------------------| | Sports cable package + internet: $145/month | Sling Orange ($40) + antenna ($0) + internet ($50) = $90/month | | Annual savings: $660 | |
Household C: Full family, needs everything
| Cable | Streaming alternative | |-------|----------------------| | Premium cable + internet: $180/month | YouTube TV ($73) + Disney+ ($8) + Netflix ($17) + internet ($50) = $148/month | | Annual savings: $384 | |
Even the "worst case" household saves $384/year by cutting cable. The typical household saves $600-1,200/year.
The True Cost of Cable: 5-Year View
Cable bills increase every year. A customer paying $95/month today:
- Year 1: ~$95/month = $1,140/year
- Year 2: ~$100/month = $1,200/year (5% increase)
- Year 3: ~$105/month = $1,260/year
- Year 4: ~$110/month = $1,320/year
- Year 5: ~$116/month = $1,392/year
- 5-year total: ~$6,312
The same 5 years on a streaming setup (Netflix + Disney+ + internet, 3% annual increase):
- Year 1: ~$75/month = $900
- Year 5: ~$84/month = $1,008
- 5-year total: ~$4,680
5-year savings: ~$1,632 — while also avoiding the annual retention call.
Hidden Costs Cord-Cutters Sometimes Forget
Internet: If you're currently on a cable/internet bundle and you cancel TV, your internet price may go up. Factor this in.
Multiple TVs: A single streaming subscription covers multiple devices, but some services limit simultaneous streams. YouTube TV allows 3 simultaneous streams; Netflix base plan allows 2.
VPN (optional): If you want to access geo-restricted content or add a privacy layer, a VPN adds $3-8/month. Not required, but some households add it.
Streaming device (one-time): A Roku or Fire TV stick costs $30-60 per TV. For a household with 3 TVs, that's $90-180 one-time.
Bottom Line: Is Cord-Cutting Worth It for You?
Cut the cord if:
- Your cable bill is over $70/month
- You watch fewer than 20 channels regularly
- You're comfortable with a streaming device
- Internet is available separately in your area
Keep cable if:
- You're locked into a contract with a large ETF
- Your cable bundle includes phone service you need
- You're in a rural area with limited broadband options
- You watch extensive live sports across multiple RSNs
For the vast majority of households, the math is clear: streaming is cheaper, flexible, and improving every year. Cable is raising prices, losing subscribers, and offering less value.
Start Your Setup: Roku Streaming Stick 4K →
Add Free Local Channels: Indoor Antenna →
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Our editorial team consists of streaming experts who research and test products so you can make informed buying decisions.