How are prorated charges calculated when switching plans?

When switching plans, prorated charges are calculated to ensure you only pay for the time you use on each plan. Here’s an example to explain:

Suppose you are on the "Startup Monthly" plan, which costs $30 per month, and you decide to switch to the "Startup Yearly" plan, which costs $300 per year.

1. Current Monthly Plan:

   • Cost: $30 per month

   • Let's say you have used 10 days of your current monthly billing cycle, and there are 20 days remaining.

2. Prorated Calculation:

   • Daily cost of the monthly plan: $30 / 30 days = $1 per day

   • Unused portion of the monthly plan: 20 days x $1 per day = $20

3. Switch to Yearly Plan:

   • Cost of the "Startup Yearly" plan: $300

   • Credit for unused monthly plan: $20

4. Final Charge for Yearly Plan:

   • Total cost: $300 (yearly plan)

   • Minus credit for the unused monthly plan: $20

   • Amount charged: $300 - $20 = $280

When you switch from the monthly to the yearly plan, your free trial ends immediately (if applicable), and you are charged the prorated amount for the yearly plan. In this example, you would be charged $280 for the "Startup Yearly" plan after accounting for the $20 credit from your unused monthly plan days.