How will my payments be adjusted if I switch to a different subscription plan?

Modified on Wed, 11 Sep at 8:09 PM

When you decide to switch your TimelyBills subscription plan, both the Apple App Store and Google Play Store use a prorated billing mechanism. This means you will only be charged for the portion of the service you’ve used so far. It’s a fair and transparent way to ensure your payments are adjusted correctly when changing plans.

Here’s how prorated billing works in two common scenarios, explained through an example:

Scenario 1: Switching from Pro Monthly Subscription to Pro Yearly Subscription:

Let’s say you’re currently on the Pro Monthly Subscription at $5 per month, with your billing cycle starting on the 1st of each month. If you switch to the Pro Yearly Subscription Plan on the 15th of the month, the following adjustments will be made:

Pro Monthly Subscription (Jan 1 - Jan 15): You’ve used the Pro Monthly Subscription for 15 days. Instead of being charged the full $5, you will only pay for the days you used it. In this case, the prorated amount would be:
(15/30) * $5 = $2.50.

Pro Yearly Subscription (Jan 16 - Rest of the year): You switch to the Pro Yearly Subscription on the 16th. The remaining balance of $2.50 from your previous plan will be applied toward your new subscription. Once this amount is used up (around the 21st of the month), the yearly fee will begin, but you won’t be charged for those five interim days.

Scenario 2: Switching from Pro Yearly to Pro Monthly Subscription:

Now, let’s say you’re on the Pro Yearly Subscription Plan at $29 per year, starting on January 1st. If you decide to switch to the Pro Monthly Subscription on the 15th day of the year, here’s how the billing would work:

Pro Yearly Subscription (Jan 1 - Jan 15): For the first 15 days, you will have used $1.19 worth of your $29 yearly subscription. The prorated cost calculation would be:
(15/365) * $29 ≈ $1.19.

Pro Monthly Subscription (Jan 16 - Rest of the month): Once you switch, the remaining balance of around $27.81 from your yearly subscription will be applied to your monthly plan. You won’t be charged for the monthly subscription until that balance has been fully used, meaning your new monthly fee will start only after the rollover is used up.

Note: These calculations don’t include taxes for simplicity, but actual charges may vary based on local tax rates.

In summary, prorated billing ensures you are billed fairly when changing (upgrading or downgrading) your subscription.

Apple and Google Play Store handle this process, and TimelyBills fully complies with their standard procedures to make sure everything is adjusted smoothly for you.