When managing a team plan subscription, knowing how prorated charges for buying seats are calculated helps you manage costs.
This article explains how prorated charges work when you buy additional seats in your existing Team plan, so you can anticipate any changes to your billing.
How prorated charges work
When you buy seats in a team plan, the cost is prorated based on the remaining days in your current billing period. This ensures you only pay for the portion of the month that the new seats will be active before your next billing cycle.
Example
You manage a Tactiq Team with a team plan that costs $16.70 per seat per month. Your billing period starts on the 1st of each month. On November 13th, which is 12 days into the current billing period, you purchase two new seats.
Cost calculation
You will be billed for the remaining 18 days of the current billing period for the new additional seats. This prorated charge will appear on your next invoice, processed on December 1st. In this example, you will see an additional $20.07 charge for the two new seats on your next invoice. For subsequent invoices, each seat will be billed the full monthly price of $16.70.
Note: This does not apply to customers on contracted plans. Please refer to your contract for further details.
FAQs
How is the prorated cost calculated for new seats? Will the prorated charge appear on the same invoice as my regular subscription fee?
How is the prorated cost calculated for new seats? Will the prorated charge appear on the same invoice as my regular subscription fee?
The prorated cost is calculated based on the number of days remaining in the current billing period. The daily cost is determined by dividing the monthly cost by the number of days in the month, and then multiplying by the number of remaining days.
The prorated charge for new seats will appear on your next invoice along with your regular subscription fee.
When will I be billed for the new seats I purchase?
When will I be billed for the new seats I purchase?
You will be billed for the prorated cost of new seats on your next invoice, which is processed at the start of the following billing period.
How can I find the total cost for new seats added mid-month?
How can I find the total cost for new seats added mid-month?
Calculate the daily cost per seat, multiply by the number of remaining days in the current billing period, and then multiply by the number of new seats.
Need help? Contact support.