Subscription prorations ensure that you're billed fairly when making changes to your subscription plan mid-billing cycle. This guide explains how prorations work and what to expect when upgrading, downgrading, or modifying your subscription.
What's Proration?
Proration is the process of calculating charges or credits based on the portion of a billing period you've used a particular plan. When you make changes to your subscription, proration ensures you only pay for what you actually use.
When Do Prorations Apply?
Proration typically applies in the following scenarios:
Upgrading your plan: You'll be charged a prorated amount for the upgraded features for the remainder of your billing cycle.
Downgrading your plan: You'll receive a prorated credit that will be applied to your next invoice.
How Are Prorations Calculated?
Proration calculations follow this basic formula:
Prorated Amount = (Price Difference × Days Remaining) ÷ Total Days in Billing Period
Example: If you upgrade from a $10/month plan to a $30/month plan halfway through your monthly billing cycle:
Price difference: $30 - $10 = $20
Days remaining: 15 days (assuming a 30-day month)
Prorated charge: ($20 × 15) ÷ 30 = $10
You would be charged $10 immediately for the upgrade, in addition to your regular subscription fee at renewal.
Upgrade Prorations
When you upgrade to a higher-tier plan:
The difference between your current plan and the new plan is calculated
This difference is prorated based on the remaining days in your billing cycle
You're charged the prorated amount immediately
Your next billing date remains unchanged
At renewal, you'll be charged the full price of your new plan
Downgrade Prorations
When you downgrade to a lower-tier plan:
The difference between your plans is calculated and prorated
A credit is added to your account
This credit is automatically applied to your next invoices
The downgrade typically takes effect at the end of your current billing period
Frequently Asked Questions
Why was I charged immediately when upgrading?
When you upgrade, you gain access to additional features immediately. The prorated charge ensures you pay for these features for the time you'll use them in the current billing cycle.
Will I get a refund if I downgrade?
Instead of a direct refund, you'll receive a credit applied to your account, which will reduce your next invoice amount.
What happens if my credit is larger than my next bill?
If your credit exceeds your next billing amount, the remaining credit will carry forward to subsequent billing cycles until fully used.
Need Help?
If you have questions about how proration affects your specific subscription or need clarification on charges, please contact our support team. We're happy to walk you through your billing details and explain any prorated amounts on your account.