Proration

Proration calculates fair charges when subscription changes happen between billing dates. It ensures customers only pay for what they use.

Example: A customer has a $30/month plan and upgrades to a $60/month plan halfway through the month:

• First half: $30/2 = $15 (old plan)
• Second half: $60/2 = $30 (new plan)
• Total prorated charge = $45

Proration commonly occurs during:

• Plan upgrades/downgrades
• Adding/removing licenses like seats
• Cancellations