Proration

Adjusting billing amounts when a customer upgrades, downgrades, or cancels their subscription mid-cycle.

What is Proration?

Proration ensures customers are charged fairly when their subscription plan changes before the next billing cycle.

Prorated billing ensures fairness in subscription pricing.

Common scenarios for proration include:

  • Upgrading to a higher-tier plan mid-month
  • Downgrading a subscription before renewal
  • Canceling a plan with partial refund eligibility

    • Stripe and other billing platforms offer automatic proration settings.

    Related terms
    Churn PreventionSSO (Single Sign-On)Dunning EmailsVertical ScalingBilling Anchor Date
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