Choosing the right pricing model for transcription services can save you hundreds of dollars—or cost you more than necessary if you pick poorly. The decision comes down to how often you transcribe and how predictable your usage is.
This article is part of our guide to choosing the right speech-to-text tool, where we cover the full decision framework for selecting transcription software.
Understanding the Two Pricing Models
Pay-As-You-Go
Pay-as-you-go charges you only for what you use. Upload an hour of audio, pay for an hour. No monthly fees, no commitments, no unused credits expiring at the end of the month.
Typical rates for AI transcription range from $0.10 to $0.75 per audio minute, depending on the provider and features. Human transcription services cost significantly more—usually $1.50 to $3.00 per minute—but deliver higher accuracy for challenging audio.
Pros:
- No upfront commitment
- Pay only for actual usage
- Simple to understand and budget
- Easy to try different services
Cons:
- Higher per-minute rate than subscription tiers
- Costs can spike during busy periods
- No volume discounts for occasional users
Subscription Plans
Subscriptions give you a fixed number of transcription minutes (or hours) each month for a flat fee. If you consistently transcribe similar volumes, you'll pay less per minute than pay-as-you-go users.
Most subscription plans offer 15-25% savings compared to pay-as-you-go rates. For example, Deepgram's annual Growth plan costs $0.0065/minute versus $0.0077/minute for pay-as-you-go—a 16% discount. Trint's subscription works out to about €15/hour compared to €16.20/hour for occasional users.
Pros:
- Lower effective per-minute cost
- Predictable monthly expenses
- Often includes extra features (faster processing, priority support)
Cons:
- Unused minutes typically don't roll over
- Annual contracts lock you in
- Overage charges if you exceed your plan
Real Cost Comparison: When Does Each Model Win?
Let's run the numbers for three usage scenarios using typical market rates.
Scenario 1: Light User (2 hours/month)
| Model | Monthly Cost |
|---|---|
| Pay-as-you-go ($0.25/min) | $30 |
| Basic subscription ($48/mo for 3 hours) | $48 |
Winner: Pay-as-you-go saves $18/month. The subscription includes more hours than needed, wasting money on unused capacity.
Scenario 2: Regular User (10 hours/month)
| Model | Monthly Cost |
|---|---|
| Pay-as-you-go ($0.25/min) | $150 |
| Mid-tier subscription ($99/mo for 12 hours) | $99 |
Winner: Subscription saves $51/month. Consistent usage makes the volume discount worthwhile.
Scenario 3: Variable User (2-15 hours/month)
This is where the decision gets tricky. Some months you barely use transcription; others, you're processing a backlog of interviews or meeting recordings.
| Model | Low Month (2hr) | High Month (15hr) | 6-Month Average |
|---|---|---|---|
| Pay-as-you-go | $30 | $225 | ~$127/mo |
| Subscription (12hr plan) | $99 + $75 overage | $99 + $75 | ~$137/mo |
Winner: Pay-as-you-go—but barely. The subscription's overage fees eliminate its advantage when usage spikes.
Hidden Costs That Affect Your Decision
Per-minute pricing is just the starting point. Several factors can shift the real cost:
Accuracy and Rework
A transcription service with 90% accuracy sounds good until you spend an hour correcting errors in a 30-minute recording. Lower-accuracy services often have lower prices, but the time spent fixing mistakes has a real cost.
If your hourly rate is $50 and you spend 30 minutes correcting a transcript, that's $25 in hidden labor—potentially more than the "savings" from choosing a cheaper service.
Feature Bundling
Subscriptions often bundle features that pay-as-you-go plans charge extra for:
- Speaker diarization (identifying who said what)
- Timestamps and time-coding
- Multiple export formats
- Priority processing queues
Check what's included at each tier. A $99 subscription that includes speaker diarization might cost less than a $75 pay-as-you-go service that charges $0.02/minute extra for the same feature.
Overage Policies
Some subscriptions let you buy additional minutes at the standard rate; others charge premium overage fees (sometimes 1.5-2x the normal rate). Read the fine print before committing.
Which Model Fits Your Situation?
Choose Pay-As-You-Go If:
- You transcribe fewer than 5 hours per month
- Your usage varies significantly month to month
- You're testing different services before committing
- You work on projects with long gaps between transcription needs
- You want the flexibility to switch providers easily
Choose Subscription If:
- You consistently transcribe 8+ hours per month
- Your usage is predictable within a narrow range
- You need bundled features like speaker diarization
- You prefer fixed monthly expenses for budgeting
- You're willing to commit for a year to get the best rates
Consider a Hybrid Approach
Over 60% of SaaS companies now offer hybrid pricing—a base subscription with pay-as-you-go for overages. This gives you the volume discount for predictable usage while accommodating occasional spikes without punitive overage fees.
Making Your Decision
Before committing to either model, track your actual transcription usage for 2-3 months. Most people overestimate how much they'll use a new tool, and subscriptions count on that optimism to profit from unused capacity.
If you're just getting started with transcription or your needs vary, pay-as-you-go eliminates the risk of paying for minutes you won't use. Tools like Scriby use straightforward pay-as-you-go pricing—you upload audio, see the cost upfront, and pay only for what you transcribe. No monthly fees, no expiring credits, no surprise bills.
Once you have a clear picture of your usage patterns, you can make an informed decision about whether a subscription tier would actually save you money—or just create the illusion of savings while locking you into a commitment.