The Billing system automatically calculates the prorated amount when a subscription is upgraded or downgraded based on the per-day charge of the subscription. It implies that you will only be charged a prorated amount for the previous plan starting from the beginning of the cycle until the plan was modified.
After the upgrade or downgrade, you will be charged a prorated fee for the new plan from that point until the end of the cycle.
Here are some additional examples:
- If a customer upgrades their subscription plan from $300 to $500 on the 25th day before the cycle ends, the prorated amount would be $83.33. This is calculated by subtracting the cost of the original subscription plan for the 25 days used ($250) from the cost of the new subscription plan for the same period ($333.33).
- Another example is if a customer downgrades their subscription plan from $800 to $500 on the 5th day of the cycle. In this case, the prorated amount would be -$116.67, which means that the customer would receive a credit of $116.67 for the unused portion of the original subscription plan.