Cord Cutting Math: How to Calculate Your Savings

Many people over-complicate the math when figuring out the cost or benefit of cutting the cord. The key is to focus only on the expenses that change.

Think of it like this:

You only really care about what changes. If something remains the same before and after, then it doesn't figure into the calculations. If you do county them, they cancel out and don't impact the bottom line. If you do not county them, they don't impact the bottom line. Look for the differences, and only the differences.

Here's how this applies to cord cutting:

• Subscriptions you keep: If you already subscribe to Netflix or Amazon Prime Video, and continue to do so after cutting the cord, don't include them in your calculations. They're the same before and after. Cutting the cord doesn't impact the cost. Ignore any service you already have when you calculate the cost.
• Internet service: This is often a tricky part. Many cable companies offer bundled discounts, so your internet might become more expensive if you drop TV. The cost may change, so it can be a difference. Find out the new cost, and subtract the current cost. That's the impact.
• New streaming services: If you add new services after cutting the cord, those are additional expenses. Those have to be taken into consideration.

Getting an accurate picture:

Some websites and videos incorrectly include existing subscriptions like Netflix in their calculations. This only makes sense if you weren't already subscribed. Always compare the total expenses before and after cord cutting, focusing only on the items that change.

By keeping it simple, you'll get a clear picture of how much you're actually saving (or spending) in your new streaming life. My Streaming Life saves me a lot of money over cable. Yours may as well.