How Prorata Billing Works
What Is Prorata Billing?
When a member subscribes to a monthly plan mid-month, their first invoice covers only the days from when they joined until the next billing date. From the second cycle onwards, they're charged the full monthly amount.
This means members never pay for days before they were active.
Example
- Plan: €300/month
- Billing day: 1st of each month
- Member joins: 20th January
- Days remaining in January: 12 (out of 31)
- First invoice: €300 × (12/31) = €116.13
- From 1st February onwards: €300 on the 1st
How It Looks on the Invoice
The first invoice clearly shows the date range it covers — e.g., "20 Jan – 31 Jan". There's no guesswork for the member about why the amount is different.
When Prorata Applies
Prorata applies to the first billing cycle only, whenever a member's subscription start date doesn't fall on the billing day.
If a member joins exactly on the billing day (e.g., joins on the 1st and the billing day is the 1st), no prorating is needed — they pay the full amount immediately.
Annual Plans
Annual plans are prorated the same way — if a member starts mid-year, the first charge covers only the remaining days/months until the annual renewal date.
Common Questions
Can I disable prorata and charge the full amount immediately? Not via a settings toggle — prorata is calculated automatically. If you want to charge full price from day one, set the subscription start date to the billing day.
What if a member disputes their first invoice amount? Show them the date range on the invoice. The calculation is transparent — daily rate × days remaining.
Does prorata apply to one-off bookings? No — prorata only applies to recurring plan subscriptions, not individual bookings.