Understanding Pro-Rated Billing
When adding an extra license to an existing subscription, the additional license may be pro-rated instead of being charged for a full billing period immediately.
How it works
If you already have an active subscription with a renewal date, newly added licenses can be aligned with that same billing cycle. Instead of starting a separate cycle, only the remaining time until the next renewal date is charged.
Example:
- Existing subscription renews on June 11
- New license added on May 20
- Instead of paying for a full billing cycle immediately, you are charged only for May 20 – June 11
- On the next renewal date, all licenses are billed together for the full subscription period
This applies to both monthly and yearly subscriptions.
Why we use pro-ration
Pro-ration keeps all licenses on a single renewal schedule, making billing easier by:
- Reducing multiple invoices
- Keeping renewals aligned
- Simplifying subscription management
You may also see small charges or credits when licenses are added or removed during an active subscription period. These adjustments reflect only the unused or remaining portion of the billing cycle.