Articles on: Billing & Pricing

How does proration work and what is the "Credits balance"?

Introduction



When you make a change to your plan, it goes into effect immediately and you are billed a prorated amount based on your new plan and billing cycle.

Prorate means we calculate the remaining balance in your current billing cycle for your initial plan and add it as a credit to use towards upcoming payments on your new plan.

The prorated amount is calculated based on the date of plan change to the billing period ends. You'll see line items in your invoice adding a credit for your initial plan and billing you the difference for the new plan.

If you have credits in your balance, you can see them as shown in the image below.



Different scenarios



Changing billing cycle

When you change your plan’s billing cycle:

Your new billing cycle starts immediately, on the date you made this change.
We calculate the credit for unused time left in your initial plan.
If you change your billing cycle from monthly to annual, the credit is deducted from the price of the annual plan, and you are billed for the remaining prorated amount.
If you change your billing cycle from annual to monthly, the price of the monthly plan will be deducted from the credit.

Upgrading your plan

When you upgrade your plan:

If you keep the billing cycle the same, your renewal date doesn’t change
If you change the billing cycle (for example: from monthly to annual), your new billing cycle starts immediately, on the date you made this change
We calculate the credit for unused time left in your initial plan
The credit is deducted from the price of the upgraded plan

Downgrading your plan

When you downgrade your plan:

If you keep the billing cycle the same, your renewal date doesn’t change
If you change the billing cycle (for example: from monthly to annual), your new billing cycle starts immediately, on the date you made this change
You will stay on your current plan until the end of its billing period
When you reach the end of the billing period, you will be switched to the new downgraded plan.

Example:



For example, you might be on the annual Launch plan ($299.00/year) and upgrade to a monthly Growth plan ($79.90/month) 3 months into the billing year, you'll not be charged more until the total $299.00 payment you initially made is used.

In the example above, you would be billed as shown on the table below:



In short, this system is in place to ensure that you always utilize the money you spend with us.

If you're still confused, feel free to reach out via our chat!

Updated on: 26/03/2021

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