When you run a subscription business on Stripe, you pay the same 2.9% + $0.30 fee on every successful recurring charge — just as you would for a one-off payment. But a few nuances specific to subscriptions are worth understanding before you set your pricing.
Do you pay a fee every time Stripe bills a subscriber?
Yes. Each successful subscription renewal triggers a separate transaction fee. If a customer pays $99/month on a monthly plan, Stripe takes $3.17 on each renewal (2.9% × $99 + $0.30), leaving you $95.83. Over 12 months on a single subscriber, you pay $38.04 in total fees on $1,188 of gross revenue.
On an annual plan at $990 (billed once), Stripe charges the fee once: $29.01, leaving $960.99. You net roughly the same — but only get one fee deduction instead of twelve.
Annual vs. monthly billing: the fee math
For a $99/month plan:
| Billing | Annual gross | Annual fees | Annual net |
|---|---|---|---|
| Monthly | $1,188 | $38.04 | $1,149.96 |
| Annual ($990) | $990 | $29.01 | $960.99 |
Monthly billing generates $189 more gross revenue per year, and even after the extra fees, nets you $188.97 more per subscriber. This is why many SaaS products offer an annual discount of 15–20% — it's still financially favorable to the business through improved cash flow, not net payout advantage.
Dunning and failed charges
When a subscription renewal fails (insufficient funds, expired card), Stripe can automatically retry the charge on a configurable schedule. There is no fee for the failed attempt itself, but you don't receive the revenue. Third-party tools like Profitwell Retain improve recovery rates on failed payments by 40–60%.
International subscribers
Subscribers paying with cards issued outside the US incur an additional 1.5% cross-border fee (bringing the total to 4.4% + $0.30). If a significant portion of your subscriber base is international, model your effective blended fee rate accordingly — use the calculator below.
What about refunds?
If you refund a subscriber, Stripe returns the percentage component (2.9%) but not the fixed $0.30. So on a full $99 refund, you lose $0.30 net.