Newsletter Income Calculator

Calculate your paid newsletter income from subscriptions and sponsorships, then see UK tax and take-home pay. Works for Substack, Ghost, Beehiiv and direct.

UK Paid Newsletter Income Calculator

Frequently Asked Questions

What is a realistic paid newsletter conversion rate?

Top paid newsletters convert 5–15% of free subscribers to paid. Average is around 5–8%. For a list of 5,000 free subscribers, expect 250–750 paying customers at typical conversion rates.

Is Substack income taxable in the UK?

Yes — Substack subscription and sponsorship income is self-employment income. Substack deducts 10% platform fee and Stripe payment processing before paying you. Declare net income on Self Assessment.

Which newsletter platform has the best fee structure?

Ghost Pro takes 0% revenue share (pay ~£36/month flat fee for hosting). Substack takes 10% plus Stripe fees. Beehiiv charges 5.9% per transaction on the Scale plan. Ghost wins on fees at high subscription volumes.

How many subscribers do I need to earn a full-time income?

At £7/month: 1,000 paying subscribers = ~£7,560/year net (after 10% Substack fee). To replace a £40,000 salary: need approximately 5,000 paying subscribers at £7/month or 2,500 at £14/month.

What newsletter expenses can I deduct for tax?

Allowable expenses: platform fees (Ghost, Substack Pro), email tools (Mailchimp, ConvertKit), editorial/ghostwriting fees, design and branding, web hosting, research tools, and a proportion of phone/broadband.

Do I charge VAT on newsletter subscriptions?

If annual revenue exceeds £90,000, you must register for VAT. Digital subscriptions sold to UK customers are standard-rated at 20%. EU customers may require EU VAT registration under OSS rules.

What is a good monthly churn rate for a paid newsletter?

Below 3%/month is excellent; 5–8% is typical. High churn means you're constantly replacing lost subscribers. Annual plans (discounted) dramatically reduce churn — model both scenarios in our calculator.

How do newsletter sponsorships work tax-wise?

Sponsorship payments are trading income — add them to subscription revenue for Self Assessment. Invoice sponsors formally, retain payment records, and include them in your total self-employment income.

Can I run my newsletter through a limited company?

Yes — at annual profits above £40,000, limited company operation can reduce tax. Corporation tax at 25% vs. income tax + NI can save significant amounts, though ongoing admin costs apply.

What writing tools/software costs are deductible?

Grammar tools (Grammarly Pro), research databases, note-taking apps (Notion, Obsidian), AI writing assistants, and editorial calendars used exclusively for your newsletter business are all deductible.

How do I grow a paid newsletter from 0?

Proven tactics: publish consistently on LinkedIn/Twitter to build free subscribers, offer a premium sample post, run referral programmes (SparkLoop), partner with complementary newsletters, and convert existing audience from other platforms.

What's the difference between Substack and Ghost for UK creators?

Substack is easier to start and handles payments natively (10% fee). Ghost gives more control, 0% fee, but requires technical setup and flat monthly hosting fees. Ghost is better value above ~£2,000/month in subscriptions.