Examples

The following are examples of upgrades and downgrades, with and without free trials.

For all examples, the following applies:

  • Standard subscription price: $30/month (daily price = $30/30 days = $1/day)
  • Premium subscription price: $60/month (daily price = $60/30 days = $2/day)

Each example includes a table, timeline, and detailed description of how each proration mode is calculated.

Example 1: Upgrade, no free trial

In this example, the customer signs up for a standard subscription on September 1. On September 15, the customer changes to the premium subscription.

Proration Mode

Proration

Premium Subscription Start Date

Premium Subscription First Payment Date
INSTANT_PRORATED_DATE

8 days of premium subscription

Sep 15

Sep 23

INSTANT_PRORATED_CHARGE

Extra payment of $15 by customer on Sep 15

Sep 15

Oct 1

INSTANT_NO_PRORATION

None

Sep 15

Oct 1

DEFERRED

None

Oct 1

Oct 1

The initial payment made by the customer on September 1 for the standard subscription is $30. The customer changes the subscription on September 15, therefore the customer has used $15 of their initial payment (15 days * $1/day). The customer has $15 remaining of their initial payment ($30 - $15).

INSTANT_PRORATED_DATE mode calculation (example 1)

The remaining initial payment ($15) is applied towards the premium subscription. The number of prorated days of the premium subscription is calculated as follows:

remaining initial payment / premium subscription daily price
= $15 / ( $2 / day )
= 7.5 days (round up)
= 8 days

These 8 days are applied immediately, starting on September 15 and ending on September 23. On September 23, the subscription is automatically renewed and the customer is billed $60. Automatic renewal occurs on the 23rd of each month.

INSTANT_PRORATED_CHARGE mode calculation (example 1)

There are 15 days left in the subscription period after the subscription is changed.

charge for remainder of month at premium subscription price
= days remaining in subscription period * daily price of premium subscription
= 15 days * ( $2 / day )
= $30

The prorated extra payment for the customer is calculated as follows:

charge for remainder of month at premium subscription price - remaining initial payment
= $30 - $15
= $15

The premium subscription starts immediately and the customer is billed $15 on September 15. The subscription period and automatic renewal date remain the same. On October 1, the customer is automatically billed $60 and automatic renewal occurs on the 1st of each month.

INSTANT_NO_PRORATION mode calculation (example 1)

The premium subscription starts immediately and the subscription period and automatic renewal date remain the same. On October 1, the customer is automatically billed $60 and automatic renewal occurs on the 1st of each month.

DEFERRED mode calculation (example 1)

The customer continues with the standard subscription until October 1. On October 1, the premium subscription is started and the customer is automatically billed $60. Automatic renewal occurs on the 1st of each month.

Example 2: Downgrade, no free trial

In this example, the customer signs up for a premium subscription on June 1. On June 15, the customer changes to the standard subscription.

Proration Mode

Proration

Standard Subscription Start Date

Standard Subscription First Payment Date
INSTANT_PRORATED_DATE

30 days of standard subscription

Jun 15

Jul 15

INSTANT_PRORATED_CHARGE

N/A

INSTANT_NO_PRORATION

DEFERRED

None

Jul 1

Jul 1

The initial payment made by the customer for the premium subscription is $60. The customer changes the subscription on June 15, therefore the customer has used $30 of their initial payment (15 days * $2/day). The customer has $30 remaining of their initial payment ($60 - $30).

INSTANT_PRORATED_DATE mode calculation (example 2)

The remaining initial payment ($30) is applied towards the standard subscription. The number of prorated days of the standard subscription is calculated as follows:

remaining initial payment / standard subscription daily price
= $30 / ( $1 / day )
= 30 days

These 30 days are applied immediately, starting on June 15. On July 15, the subscription is automatically renewed and the customer is billed $30. Automatic renewal occurs on the 15th of each month.

INSTANT_PRORATED_CHARGE mode calculation (example 2)

Not applicable for downgrades.

INSTANT_NO_PRORATION mode calculation (example 2)

Not applicable for downgrades.

DEFERRED mode calculation (example 2)

The customer continues with the premium subscription until July 1. On July 1, the standard subscription is started and the customer is automatically billed $30. Automatic renewal occurs on the 1st of each month.

Example 3: Upgrade, both subscriptions have free trial periods

In this example, the customer signs up for a standard subscription on November 1. Both the standard subscription and premium subscription have a 10-day free trial period. The free trial period for the standard subscription starts on November 1 and ends on November 11. The standard subscription starts on November 11. On November 15 (after the free trial period has ended, 4 days into the standard subscription), the customer changes to the premium subscription.

Proration Mode

Free Trial Scope

Proration

Premium Subscription Start Date

Premium Subscription Free Trial Period

Premium Subscription First Payment Date
INSTANT_PRORATED_DATE

Once per item

13 days of premium subscription

Nov 15

Nov 28 - Dec 8

Dec 81

Once per app

Nov 15

N/A

Nov 282

INSTANT_PRORATED_CHARGE

Once per item

Extra payment of $26 by customer on Nov 15

Nov 15

N/A3

Dec 114

Once per app

INSTANT_NO_PRORATION

Once per item

None

Nov 15

Dec 11 ‑ Dec 21

Dec 215

Once per app

Nov 15

N/A

Dec 114

DEFERRED

Once per item

None

Dec 116

Dec 11 - Dec 21

Dec 215

Once per app

Dec 116

N/A

Dec 114

1Automatic renewal occurs on the 8th each month after the free trial period for the premium subscription (11/28 - 12/8).
2Automatic renewal occurs on the 28th each month.
3Free trial periods are not applicable for items set to the INSTANT_PRORATED_CHARGE mode.
4Automatic renewal occurs on the 11th of each month based on the payment date of the standard subscription (11/11 - 12/11).
5Automatic renewal occurs on the 21st of each month after the free trial period for the premium subscription (12/11 - 12/21).
6The premium subscription starts after the standard subscription period finishes (11/11 - 12/11).
The free trial period is applicable as long as the customer has not previously purchased the premium subscription.


The initial payment made by the customer for the standard subscription is $30. The customer changes the subscription on November 15 therefore the customer has used $4 of their initial payment (4 days * $1/day). The customer has $26 remaining of their initial payment ($30 - $4).

INSTANT_PRORATED_DATE mode calculation (example 3)

The remaining initial payment ($26) is applied towards the premium subscription. The number of prorated days of the premium subscription is calculated as follows:

remaining initial payment / premium subscription daily price
= $26 / ( $2 / day )
= 13 days

These 13 days are applied immediately, starting on November 15 and ending on November 28.

If a free trial period is set once per item and the customer has not previously purchased the premium subscription, the free trial period starts on November 28 and ends on December 8. The customer is billed $60 on December 8, after the free trial has ended. The first full (non-prorated) subscription period starts on December 8 and automatic renewal occurs on the 8th of each month.

If a free trial period is set once per app, the free trial is not applicable to the premium subscription as it has been used with the standard subscription. On November 28, the subscription is automatically renewed and the customer is billed $60. Automatic renewal occurs on the 28th of each month.

INSTANT_PRORATED_CHARGE mode calculation (example 3)

There are 26 days left in the subscription period after the subscription is changed. Free trial periods are not applicable to the upgraded/downgraded item for items set to the INSTANT_PRORATED_CHARGE mode.

charge for remainder of month at premium subscription price
= days remaining in subscription period * daily price of premium subscription
= 26 days * ( $2 / day )
= $52

The prorated extra payment for the customer is calculated as follows:

charge for remainder of month at premium subscription price - remaining initial payment
= $52 - $26
= $26

The premium subscription starts immediately and the customer is billed $26 on November 15. The subscription period starts and is automatically renewed on December 11 and the customer is automatically billed $60. Automatic renewal occurs on the 11th of each month.

INSTANT_NO_PRORATION mode calculation (example 3)

The premium subscription starts immediately.

If a free trial period is set once per item and the customer has not previously purchased the premium subscription, the free trial period of premium starts on December 11 and ends on December 21. The customer is billed $60 on December 21, after the free trial has ended. Automatic renewal occurs on the 21st of each month.

If a free trial period is set once per app, the free trial is not applicable to the premium subscription as it has been used with the standard subscription. On December 11, the subscription is automatically renewed and the customer is billed $60. Automatic renewal occurs on the 11th of each month.

DEFERRED mode calculation (example 3)

The customer continues with the standard subscription until December 10.

If a free trial period is set once per item and the customer has not previously purchased the premium subscription, the free trial period starts on December 11 and ends on December 21. The customer is billed $60 on December 21, after the free trial has ended. Automatic renewal occurs on the 21st of each month.

If a free trial period is set once per app, the free trial is not applicable to the premium subscription as it has been used with the standard subscription. On December 11, the subscription is automatically renewed and the customer is billed $60. Automatic renewal occurs on the 11th of each month.

Example 4: Downgrade, both subscriptions have free trial periods

In this example, the customer signs up for a premium subscription on September 1. Both the standard subscription and premium subscription have a 10-day free trial period. On September 7, the customer changes to the standard subscription, during the free trial period.

Proration Mode

Free Trial Scope

Proration

Standard Subscription Start Date

Standard Subscription Free Trial Period

Standard Subscription First Payment Date
INSTANT_PRORATED_DATE

Once per item

6 days of standard subscription

Sep 7

N/A

Sep 13

Once per app

Sep 7

N/A

Sep 13

INSTANT_PRORATED_CHARGE

N/A

INSTANT_NO_PRORATION

DEFERRED

Once per item

None

Sep 11

N/A

Sep 11

Once per app

Sep 11

N/A

Sep 11

INSTANT_PRORATED_DATE mode calculation (example 4)

The customer has 3 days remaining in their trial period and it is applied towards the standard subscription. The number of prorated days of the standard subscription is calculated as follows:

remaining free trial days * premium subscription daily price
= 3 days * ( $2 / day )
= 6 days

These 6 days are applied immediately, starting on September 7 and ending on September 13. The customer is billed $30 on September 13, after the number of prorated days have been used (because the subscription was changed during the free trial period, the customer was not initially billed for the premium subscription). The subscription period starts and automatic renewal occurs on the 13th of each month.

INSTANT_PRORATED_CHARGE mode calculation (example 4)

Not applicable for downgrades.

INSTANT_NO_PRORATION mode calculation (example 4)

Not applicable for downgrades.

DEFERRED mode calculation (example 4)

The customer continues with the premium subscription until the date the free trial ends (September 11). On September 11, the standard subscription is started and the customer is automatically billed $30 (because the subscription was changed during the free trial, the customer was not initially billed for the premium subscription). Automatic renewal occurs on the 11th of each month.