1. What is Prorated Subscription?

Prorated subscription refers to calculating the cost of a service based on the actual time used rather than the full billing period. This is commonly used when customers sign up or cancel services mid-billing cycle.

2. How Does the Calculator Work?

The calculator uses the prorated formula:

Where:

• \( Full Price \) — The complete price for the full billing period
• \( Days Left \) — Remaining days in the billing cycle
• \( Total Days \) — Total days in the full billing period

Explanation: This formula calculates the proportional cost based on the remaining time in the billing cycle.

3. Importance of Prorated Calculation

Details: Accurate prorated calculations ensure fair billing for both service providers and customers, especially when subscriptions start or end mid-cycle.

4. Using the Calculator

Tips: Enter the full subscription price, the number of days remaining in the billing cycle, and the total days in the billing period. All values must be valid (price ≥ 0, days ≥ 0, total days > 0).

5. Frequently Asked Questions (FAQ)

Q1: When is prorated billing used?
A: Prorated billing is used when customers sign up for or cancel services in the middle of a billing cycle to ensure they only pay for the time they actually used.

Q2: What if days left exceed total days?
A: The calculator will cap the result at the full price, as you cannot be charged more than the full subscription amount.

Q3: Can this be used for monthly subscriptions?
A: Yes, though you may need to convert months to days (typically 30 days per month for simplicity).

Q4: Are there different proration methods?
A: Some companies use daily rates, while others might use monthly averages. This calculator uses the standard proportional method.

Q5: Is prorated calculation used for refunds?
A: Yes, when customers cancel mid-cycle, prorated calculations determine the appropriate refund amount.