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How are invoices calculated?
How are invoices calculated?
Chris avatar
Written by Chris
Updated over a week ago

In most cases, invoices are simple and straightforward.

When you start a paid membership, you will be billed immediately for your first month or year (depending on your plan), and then billed automatically at the start of each subsequent period as long as your subscription is active.

You can view details about your current plan or billing schedule in the subscription section on your My Account page. You can view all details of your subscription and manage any of your subscription details including payment method, invoice history, and cancel your subscription in the Stripe Customer Portal. You can access this portal from the subscription section.


Invoice History:

Things can get a bit more complicated when you modify an existing subscription, like switching from a monthly to an annual plan or downgrading the number of seats in a team account.

Let's take a look at how billing works in these types of cases:

Upgrading a Plan

When you upgrade to a more expensive plan, you will be immediately charged for the new amount, discounted for any unused time in your current plan (this is called "proration").

For example, suppose you started a monthly subscription ($39), and decided to upgrade to annual ($349) exactly halfway through the month.

You would immediately be billed for the annual plan (which would start on the current date), and pay a balance of $329.50. This includes the full cost of the annual plan ($349) discounted by $19.50 for your unused monthly time. The same logic applies when adding seats to a team subscription.

Downgrading a Plan

When you downgrade to a less expensive plan, you will be credited with a balance that will automatically apply to future invoices.

โ—๏ธNOTE: You will not receive a refund when you downgrade or cancel a plan.

For example, suppose you signed up for a monthly team subscription with 10 seats ($359/mo), and decided to downgrade to 5 seats ($195/mo) exactly halfway through the month.

Your account would be credited $179.50 for the unused time on your 10-seat plan, which would automatically be applied to your invoice. You would see a balance due of $15.50 ($195 - $179.50) and your new 5-seat plan would begin immediately.

Want to talk to a human about this stuff? Reach out or send us a chat -- we're real people, and we're here to help!

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