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Prorating Subscriptions
Prorating Subscriptions

Let's math

Audrey Arthaud avatar
Written by Audrey Arthaud
Updated over a week ago

๐Ÿ‡บ๐Ÿ‡ธ Only available for US, UK, Australia, Canada-based coaches.

If you want to bill your clients on a set date like the 1st of each month, then it's important to understand how prorating Subscriptions works. When a client wants to start on a day other than the 1st, you can bill them an automatic prorated charge.

When creating a Subscription, if the Start Date or End Date does not match the Billing Date, then the client will be charged a prorated amount.

Calculating Prorated Charges
Stripe calculates prorations down to the exact second the Subscription was created or canceled. This makes calculating the exact proration pretty tough, but we can help you provide your clients a close estimate if they are curious about what a prorated charge will be.

To get a close estimate:

  1. Start with the total annual dollar amount of the Subscription.

  2. Divide the annual amount by 365. (This will give you the Subscription price per day).

  3. Multiply that daily price by the number of days the Subscription will be active during that billing cycle.

  4. This is roughly the amount your client will be charged.

For example, say you want to bill your clients on the 1st of each month.ย 

You have a new client starting on the 22nd of month. You want to charge your client for the training period from the 22nd to the 1st of the month. After that, you want billing to resume on the 1st of the month. ย 

Start immediately (assuming today is the 22nd)

End renew forever (this means the Subscription will bill every month)

Bill On 1st of the month

This means that your client will pay a prorated for the 22nd-31st, then bill for the full amount on the 1st.

Bill date = 1st, Start Date = 22nd.

โ€‹Weekly Plans

Note that if you set up a "Weekly" plan for one of your clients, this billing interval is not able to be prorated.ย 

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