Articles on: Billing

Understanding Plan Proration: Credits & Charges When Upgrading or Downgrading

What is Proration?

Proration is a billing adjustment that ensures you pay fairly when you change your subscription plan during a billing cycle. When you upgrade or downgrade, we calculate charges based on the time remaining in your current billing period.

Key Points:

Prorations happen when you upgrade, downgrade your plan, or change the number of seats
You pay for what you use and receive credit for unused time
Prorations are calculated automatically by Stripe and our system

Note: Cancellations happen at the end of the billing cycle, so no proration is needed

How It Works

When you change your subscription, two separate calculations happen:

1. Financial Proration (Stripe)

Adjustments to your subscription charges on invoices. This determines what you pay or receive as a credit.

2. Credit Proration (On Caimera)

Adjustments to available credits in your account balance. This determines how many credits are added or removed.

Both happen at the same time but serve different purposes.

Scenarios

Upgrading Your Plan

If you upgrade on day 10 of a 30-day cycle:

You'll be credited for the remaining 20 days at your old plan rate
You'll be charged for the remaining 20 days at your new plan rate
The difference is added to your next invoice or deducted if you're due a refund

Downgrading Your Plan

If you downgrade on day 15 of a 30-day cycle:

You'll be credited for the remaining 15 days at your old plan rate
You'll be charged for the remaining 15 days at your new plan rate
If the downgrade results in a lower charge, the difference may appear as a credit
Note: Credit balances can go negative during downgrades, which is normal

Credit adjustments happen immediately when your subscription changes. You'll see the updated balance in your account right away. Prorations ensure you only pay for what you actually use!

Scenario 1: Upgrade Plan

You upgrade from MINI ($15/month) to STARTER ($45/month) on day 10 of a 30-day cycle.

Calculation: ($5 old) + ($30 new) - $15 = $20 additional charge

You're charged an additional $20 immediately.

Scenario 2: Add Seats

You add 1 seat to STARTER plan ($45/month/seat) on day 15.

Prorated charge for extra seat: 15/30 × $45 = $22.50

You're charged $22.50 for the additional seat.

Scenario 3: Change Seats and Upgrade Plan

You change from STARTER ($45/month) with 2 seats to PRO ($117/month) with 3 seats on day 15.

Calculation: ($45 old) + ($175.50 new) - $45 = $130.50 additional charge

You're charged $130.50 immediately. All 3 seats get PRO access.

For any questions about upgrading, downgrading your plan and proration, reach out to us on contact@caimera.ai

Updated on: 26/12/2025

Was this article helpful?

Thank you!