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Proration

SaaSykit comes with support for proration out of the box. This allows you to adjust how your customer will be billed when they change their plans (upgrade/downgrade). If proration is enabled, when a customer upgrades or downgrades their subscription, the amount they have already paid will be prorated and credited towards their new plan.

For example, if a customer upgrades from a 10 USD per month plan to a 20 USD option, theyโ€™re charged prorated amounts for the time spent on each plan. Assuming the change occurred halfway through the billing period, the customer is billed an additional 5 USD: -5 USD for unused time on the initial plan, and 10 USD for the remaining time on the new plan.

When proration is disabled, your customer will be charged the full amount of the new plan when it's time to pay the next invoice (the next billing period).

note

It's a good idea to enable proration as this will reduce customer frustration and make the upgrade/downgrade process "fairer" to your customers.

But this defnitely differs from one business to another, so it's up to you to decide whether to enable proration or not.

To enable/disable proration, check settings page.