Pro-rated billing
Subscriptions
Charging only for the part of a billing cycle a customer actually uses, for example after an upgrade or a mid-cycle change.
For example, a customer upgrades halfway through a $30 month to a $50 plan, so they pay about $10 extra for the rest of the month: ($50 - $30) × 15 ÷ 30 = $10.
Fair proration lets customers upgrade anytime without feeling they paid twice, which makes upgrades easier to say yes to.
Browse our complete glossary of e-commerce and subscription terms.
