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Prorated Credits for Annual Plan Upgrades

Learn how prorated credits work when switching from a Monthly plan to an Annual plan, including how unused billing time is calculated and applied to your invoice.


Overview

When you switch from a Monthly plan to an Annual plan in the middle of your billing cycle, you may receive a prorated credit for the unused time remaining on your current Monthly plan.

This credit is automatically applied to your first Annual invoice.

How Proration Credits Work

If you’ve already paid for a full month but switch to Annual billing before the month ends, we calculate the unused portion of your Monthly plan and apply it as a credit toward your new Annual subscription.

Example

  • Current plan: $50/month

  • Billing cycle: June 1–30

  • Customer switches to an Annual plan on June 11

Since the customer only used 10 out of 30 days of the Monthly plan, there are 20 unused days remaining.

Credit Calculation

20 unused days × ($50 ÷ 30 days) = $33.33 credit

The customer’s first Annual invoice will include a line item similar to:

Credit: unused billing period — -$33.33

When Proration Credits Apply

Proration credits are only applied when:

  • Switching from Monthly billing to Annual billing

When Proration Credits Do Not Apply

Proration credits are not provided for:

  • Plan upgrades

  • Plan downgrades

  • Switching between plans with the same billing frequency

  • Other subscription or billing changes

What to Look for on Your Invoice

If a prorated credit is applied, you will see:

  • A negative line item labeled:

    Credit: unused billing period

  • The credited amount deducted from your first Annual invoice total

Please note:

  • The credit amount will never exceed the price of the new plan.

Need Help?

If you have questions about your invoice or prorated credit calculation, please contact support and we’ll be happy to assist you. Chat us or reach out via [email protected].

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