How Prorata Billing Works
What Is Prorata Billing?
When a member subscribes to a plan mid-cycle, the first invoice covers only the time from the start date until the next billing date. From the next cycle onwards, the full amount is charged.
This ensures members only pay for the time they actually use.
Billing Day (Dynamic vs Fixed)
The billing cycle is controlled by the billing day, which is configured in Location settings.
There are two approaches:
- Fixed billing day — e.g., 1st of each month for all members
- Dynamic billing day — based on the subscription start date
With dynamic billing:
- If a subscription starts on the 23rd, it renews on the 23rd of each month
- Each member effectively has their own billing cycle
Example (Fixed Billing Day)
- 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
Example (Dynamic Billing Day)
- Plan: €300/month
- Member joins: 23rd January
- Billing repeats every 23rd of the month
- First invoice: full €300 (no prorata needed)
- Next charge: 23rd February
How It Looks on the Invoice
Invoices clearly show the date range they cover — e.g., "20 Jan – 31 Jan".
When Prorata Applies
Prorata applies only when:
- Using a fixed billing day, and
- The start date does not match that billing day
If the start date aligns with the billing cycle (or dynamic billing is used), no prorating is applied.
Annual Plans
Annual plans follow the same logic — the first charge may be prorated depending on the billing configuration.
Common Questions
Can I disable prorata and charge the full amount immediately?
Prorata is automatic. To charge full price, align the start date with the billing day or use dynamic billing.
What if a member questions their first invoice?
Check the date range shown on the invoice — the calculation is based on actual usage time.
Does prorata apply to one-off bookings?
No — prorata applies only to recurring subscriptions.