Articles on: Billing

How is my "Due Today" calculated when I upgrade my subscription plan?

You may have wanted to upgrade your account from X to X (example: Starter to Pro) and you see a modal window that looks like this:

And you begin to wonder, how's that calculated?

In this short article, I will share insights on how we make adjusted/prorate your "Due Today" fee when upgrading your account.

When you decide to upgrade your plan to another plan, we take some data into account.

1: Cost of current plan

2: Days left in current plan (this is calculated as "Credit from current billing cycle)

3: Overage on current plan's billing circle

4: Cost of new plan

For example, in the screenshot above

1: Cost of current plan = $99/month (starter)

2: Day left in current plan = the user renewed their subscription in August 9 and was due again in September 9, today is August 24 which means 15 days is left in current billing cycle.

The value of 15 days in a $99/month plan = $49.31 - this will now be deducted as unused credits

3: Overage from current billing cycle = assuming the user already overused some serviced during current billing cycle, we would total it now and bill as debt

4: Cost of the new plan = $299 (pro)

So the calculation will come out as:

(Cost of New Plan + Overage from Current Cycle) - Credit from Current Cycle = Due Today

Which for this user translates to:

($299 + $0) - $49.31 = $249.69

Easy peasy!

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Updated on: 15/08/2021

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