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How proration works when you upgrade to a higher tiered plan
How proration works when you upgrade to a higher tiered plan

When you upgrade your plan, we calculate your new invoice by considering both your remaining time and unused credits, using whichever is lower.

Nick Simard avatar
Written by Nick Simard
Updated this week

Understanding proration

When you upgrade to a higher plan before your current billing cycle ends, our system calculates a fair adjustment for your next invoice.

This proration takes into account two factors:

  1. The percentage of time remaining in your current billing cycle

  2. The percentage of unused credits remaining in your plan

We use the lower of these two percentages to determine your prorated discount, ensuring a fair calculation for both you and Browse AI.

How we calculate your prorated invoice

When you upgrade, we apply this formula:
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Prorated Discount = Previous Plan Payment ร— Minimum(% Time Remaining, % Credits Remaining) New Invoice Amount = New Plan Price - Prorated Discount

Our billing system has a proration system based on credits and duration. Meaning, when you upgrade, the system looks at how much of the billing cycle and credits are left, and based on that, calculates how much of the previous payment should be deducted from the upgrade invoice.

Example: Upgrading from Starter to Professional

Let's walk through a realistic example:

  • You have a monthly Starter plan ($48.75/month).

  • After 15 days, you decide to upgrade to Professional ($123.75/month).

  • You have 200 credits remaining out of your 2,000 monthly credits.

Here's how we calculate your prorated invoice:

  1. Time remaining: 50% (15 days out of 30).

  2. Credits remaining: 10% (200 out of 2,000).

  3. The minimum percentage is 10%.

  4. Prorated discount: $48.75 ร— 10% = $4.88.

  5. Your first Professional invoice: $123.75 - $4.88 = $118.87.

After the upgrade:

  • Your billing cycle resets to start on your upgrade date.

  • Your credits reset to the full Professional plan amount (5,000).

  • Future invoices will be $123.75 per month.

Why we consider both time and credits

We factor in both time and credit usage to ensure fair billing. If we only considered time:

  • A customer who used all their credits in the first few days and then upgraded would receive a large discount despite having consumed all their purchased resources.

  • This approach balances fairness to customers while covering our infrastructure costs for providing the service.

What happens after upgrading

After upgrading:

  • Your billing date changes to your upgrade date

  • You immediately receive the full amount of credits for your new plan

  • All features of your new plan become available immediately

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