Is Substack Worth It for a Small Newsletter?

Substack is worth it for a small newsletter that publishes consistently and has readers willing to pay at least $5 a month, because publishing costs nothing until someone subscribes. It is weak as a sole income source below roughly 500 free subscribers, where even a 5% paid conversion nets about $100 a month.

See how much Substack writers actually make for net-income math, or best creator monetization platforms for the alternatives.

What does Substack cost a small newsletter?

Substack costs $0 to publish at any subscriber count and only charges once a reader buys a paid subscription. From that point three fees apply to a US-dollar Stripe account: Substack's 10% platform fee, Stripe's 2.9% + $0.30 card fee, and Stripe's 0.7% recurring-billing fee — together $0.98 of a $5 monthly subscription, leaving $4.02.

Substack's help center states that Substack takes 10% of each transaction, Stripe charges a credit card fee of 2.9% + $0.30 per transaction, and Stripe has charged a 0.7% billing fee on recurring payments as of July 2024 (Substack support, "How much does Substack cost?").

Stripe's own pricing page lists 2.9% + 30¢ per successful transaction for domestic cards in the United States, so writers billing in other currencies, taking international cards, or on non-standard Stripe terms should expect different processing rates (Stripe, "Pricing").

Substack's own about page tells writers that "90% goes to you. The rest powers the platform," confirming the 10% platform cut is Substack's only take of subscription revenue.

Substack's minimum paid-subscription price is $5 per month and $30 per year, and Substack states those minimums apply to US-dollar Stripe accounts (Substack support, "How do I set up a paid publication?").

At the $5 monthly minimum, the fees cited above produce this transaction:

• Substack's 10% fee: $0.50
• Stripe's 2.9% + $0.30 processing fee: $0.45
• Stripe's 0.7% recurring-billing fee: $0.04
• Net to the writer: $4.02 per paying subscriber per month

A $5 monthly Substack subscription nets the writer approximately $4.02 after Substack's 10% fee and Stripe's 2.9% + $0.30 and 0.7% fees, or roughly $48 per subscriber per year.

A $30 annual Substack subscription — the yearly minimum — nets approximately $25.62, because the same fee stack takes $3.00 (Substack's 10%), $1.17 (Stripe's 2.9% + $0.30) and $0.21 (Stripe's 0.7%) from a single once-a-year charge.

Twelve monthly $5 charges net about $48.24 a year against $25.62 from one $30 annual plan, so choosing the annual minimum costs a small newsletter roughly $22.62 per subscriber per year — the price of one flat $0.30 Stripe charge instead of twelve, and of a full year of prepaid retention.

Substack states that payments usually arrive in a writer's bank account within 48 hours of each transaction (Substack support, "How do payouts work on Substack?").

Substack states that the first payout for every new Stripe account takes 7-14 days to deposit in the writer's bank account (Substack support, "How do I set up my Stripe account on Substack to start receiving payments").

Do you need a big audience to make Substack worthwhile?

No. Substack publishes no follower or subscriber minimum for switching on paid subscriptions, so a 50-reader list can charge $5 a month on day one. List size sets revenue, not eligibility: at Substack's own 5-10% free-to-paid conversion range, 100 free readers means 5 to 10 payers, or $20 to $40 net monthly.

Substack's paid-publication setup guidance lists no follower or subscriber threshold for enabling paid subscriptions, and requires only a connected Stripe account.

Substack's own growth guidance states that "in the best of circumstances, writers typically see conversion rates of 5-10% from free to paid readers," a range Substack attributes to analysis by its internal data team (On Substack, "Substack Grow: Start by setting goals").

Substack's growth guidance also states that most newsletters charge $5-10 per month or $50-100 per year, while business newsletters readers expense to an employer charge closer to $10-50 per month (On Substack).

Substack reports that more than 100,000 publishers make money on Substack and that its top 10 publications collectively make more than $100 million a year.

Substack states there are more than 5 million paid subscriptions across the platform, and that more than 30% of paid subscriptions come from within Substack's own network of recommendations, Notes, and the app.

Substack states there is no limit on the size of an email list a writer can import, provided everyone on it explicitly opted in.

Eligibility is not revenue. Whether the money is meaningful depends on how many free readers convert, the price charged, and how consistently the newsletter ships.

What could 100, 500, or 1,000 free subscribers earn?

At the $5 minimum, 100 free subscribers produce roughly $8 to $20 net per month, 500 produce $40 to $100, and 1,000 produce $80 to $201. The range spans a conservative 2% conversion and the 5% low end of Substack's own published 5-10% free-to-paid range, at $4.02 net per subscriber.

These figures assume a US-dollar Stripe account and every subscription billed successfully on the web. They exclude income tax, refunds and chargebacks, failed or churned payments, currency conversion, and the different economics of subscriptions purchased through the Apple App Store.

These figures apply Substack's published 10% fee and Stripe's 2.9% + $0.30 and 0.7% fees to the $5 monthly minimum, giving $4.02 net per paying subscriber per month.

Reaching $1,000 a month at the $5 minimum requires about 249 paying subscribers at $4.02 net each, which is roughly 2,500 free readers at Substack's 10% upper conversion figure or 12,450 free readers at a 2% rate (On Substack).

That arithmetic is why list size matters even though Substack sets no threshold. A small newsletter can monetize immediately, but paid revenue stays modest until the list grows or the price rises above the $5 minimum. Some small lists lean on a one-time tipping tool in the meantime, which is why it's worth checking whether Ko-fi is worth it at a similar list size.

What is the main tradeoff for a small or new newsletter?

The tradeoff is commitment. A paid Substack subscription renews at $5 a month or $30 a year until the reader cancels, so the reader is betting on issues the writer has not published yet — a reasonable bet for an established newsletter, a harder one for a new or irregular list. A one-time payment asks for a single decision instead.

Substack's minimum of $5 per month or $30 per year means the smallest ask a writer can make inside Substack is a recurring one, since the platform offers no one-off purchase tier.

Readers can cancel a paid Substack subscription from their account settings, and Substack states that benefits continue until the end of the current billing cycle, so the writer's exposure is monthly renewal risk rather than a locked-in reader term.

Substack states that refunds may take up to 10 business days to appear on a subscriber's statement, and refunded subscriptions are money the writer does not keep.

For contrast on the one-time side, FanBell — this site's own product — charges a 12% platform fee only when a fan pays, with no monthly fee and no follower minimum, and lets the creator set the price of each interaction (FanBell pricing). Some newsletter writers pair that with paid one-off advice calls through Minnect alongside their free issues.

If your newsletter is new or your publishing schedule is irregular, a recurring subscription may ask for more trust than readers are ready to give. A one-time payment option can complement the newsletter without replacing it. How to monetize your followers directly explains the differences between pay-per-interaction and subscription models.

When is Substack worth it for a small newsletter?

Substack is worth it once a consistent newsletter has enough readers to clear your income goal at Substack's published 5-10% conversion range: roughly 500 free subscribers for $100 a month at 5%, or 2,500 for about $1,000 a month at 10%, using the $5 minimum. It is not worth relying on alone while the list is new or irregular.

Substack is more likely to be worth it when:

• Your list is large enough that 5% of it clears your goal — 500 free readers for $100 a month, 2,500 for about $500 a month, at $4.02 net per subscriber.
• At least 25 readers will pay the $5 monthly minimum, the smallest price Substack allows.
• You want $0 publishing and email tooling, which Substack charges no monthly software fee for at any list size.
• Giving up 10% to Substack plus 2.9% + $0.30 and 0.7% to Stripe — about 19.6% of a $5 subscription — is acceptable.
• You value distribution: Substack states more than 30% of paid subscriptions come from inside its own network.

Substack is less likely to work as your only monetization method when:

• Your free list is under about 200 readers, where even a 10% conversion yields 20 payers and roughly $80 net a month.
• Your publishing schedule is irregular, so readers are being asked to renew monthly for issues that may not arrive.
• Readers want a specific answer, shoutout, or request rather than more recurring content.
• A recurring $5 monthly charge is a bigger ask than your audience will make, and Substack offers no one-off tier below it.

The options are not mutually exclusive. A writer can use Substack for free publishing and archives while also offering readers a one-time way to pay for something specific, and a side-by-side look at Substack versus Ko-fi can help decide how to split that work between the two.

Disclosure: FanBell publishes this page. FanBell's own pricing page states a 12% platform fee charged only when a fan pays, with no monthly fee and no follower minimum, and payouts run through Stripe, the same processor Substack uses (FanBell, how it works). Compare that structure against whether Gumroad is worth it for one-time service payments before deciding.

Frequently asked questions

Does Substack cost anything if I never charge readers?

No. A free Substack newsletter carries no monthly software fee at any list size; Substack's fees start only at the first paid subscription, when Substack takes 10% of the transaction, Stripe takes 2.9% + $0.30 for card processing, and Stripe takes 0.7% for recurring billing.

What is the minimum you can charge on Substack?

Substack's minimum paid-subscription price is $5 per month and $30 per year for US-dollar Stripe accounts, and writers can charge more but cannot set a standard paid subscription below those amounts.

Is there a follower minimum for paid Substack subscriptions?

No. Substack's paid-publication setup guidance lists no follower or subscriber threshold for turning on paid subscriptions, requiring only a connected Stripe account.

How many free subscribers do I need to earn $100 a month on Substack?

About 25 paying subscribers at the $5 minimum, since each nets $4.02 after Substack's 10% and Stripe's 2.9% + $0.30 and 0.7% fees — roughly 500 free subscribers at the 5% low end of the 5-10% free-to-paid conversion range Substack publishes (On Substack).

How fast does Substack pay out?

Substack states that payments usually arrive in a writer's bank account within 48 hours of each transaction, though the first payout on a new Stripe account takes 7-14 days.

What if readers would rather pay once than subscribe?

A one-time payment suits readers who want a specific reply, shoutout, or request without an ongoing subscription. FanBell charges a 12% platform fee only when a fan pays, with no monthly fee and creator-set prices per interaction.

Get started

Substack and one-time payments are not mutually exclusive: keep publishing free issues while readers who prefer a single payment have somewhere to send it. Create your free FanBell page — no monthly fee, no follower minimum, 12% only when a reader pays.