Prorate Calculator

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Written By adammartelletti

Stop selling and diagnose the problem first.

The world of software subscriptions is changing rapidly. With SaaS products allowing changes to subscription plans in mid-cycle, it is critical to ensure that charges are aligned with actual use.

The concept of charging customers monthly subscriptions is relatively straightforward.

You simply charge each month based on how much data, storage space, users, features, etc, your customers consume during that period.

However, some nuances come into play when dealing with SaaS products.

For example, many SaaS companies offer different types of pricing tiers, such as free trials, paid trial periods, per-user pricing, etc.

To ensure that your customers pay for what they use, it is critical to prorate charges correctly.

If you don’t do this properly, you could end up overcharging customers or underpaying for services.

This can lead to unhappy customers and missed revenue opportunities.

Below we have a couple of simple calculators you can use to work out your charges.