Proration
Proration is the adjustment of a billing amount based on the proportion of a billing period actually used.
Proration calculates a partial charge or credit when a subscription changes mid-billing cycle, such as an upgrade, downgrade, or cancellation. It ensures customers are charged fairly for what they actually used.
Example: A customer upgrades from a $50/month plan to a $100/month plan halfway through the month. They pay $25 for the remaining days on the old plan and $50 for the remaining days on the new plan.
