Change Subscription Plan FAQs
Upgrades / Downgrades billing behaviour
If the two plans you're moving a subscription between have the same billing frequency (eg. both are monthly), you will retain the same billing dates. If the plans do not have the same billing frequency (eg. a customer is moving from monthly to yearly billing), the plan will be billed at a new interval immediately, starting on the date of the change.
As an example: You switch from one monthly plan to another, the billing date does not change. However, if you switch from a monthly, to an annual plan, you are billed immediately, and the annual billing date will be recalculated from the day of the switch (date of plan switch + 1 year).
If the change moves into a situation where a payment is required (for example moving to a more expensive plan), Paddle will automatically attempt a payment of the amount that is owed.
When changing plans, Paddle will by default prorate the subscription costs. For example, if you are on a $10 monthly plan and is billed on the 1st of every month, you execute a plan change half way through the billing cycle (in this case, mid-month on a monthly cycle - eg. the 15th of the 30-day month). In this case, you has already paid $10 and used half of that (because you are in the middle of the month). When you switch to the new plan which has a price of $30.00:
- The unused portion of your current billing cycle is applied as a credit, in this case: $10 * (15 days used / 30 days total) = $5.
- The cost of the new plan for the remaining billing cycle (ie. the outstanding 15 days left in the month) is a debit of: $30 * (15 days remaining / 30 days total) = $15.
- The final prorated cost of switching to the new plan is: +$5 credit - $15 debit = -$10 charge.
Depending on whether you choose to be billed immediately, you will either be charged $10 instantly, or this amount will be added onto your upcoming recurring payment amount.
If you are not billed immediately, the next billed amount would include the prorated charge with the payment required on the new plan for the upcoming month. Thus the next billed amount would be for a total of $40 ($30 for their upcoming billing interval, and $10 for the prorated amount from the plan change).
Since this example is a monthly-to-monthly plan change, it would not alter the billing date or cycle even if you are billed immediately.