How do Prorated Charges Work?

Prorated charges work

If the number of employees on your plan changes during a billing cycle (monthly or annual), your next invoice reflects that change — new users are billed, and credits are issued for removed users.

Example: Prorated charges calculation

Muster LLC has 12 employees on the Premium plan. For the first billing cycle, they're charged 12 × $10 = $120 (USD).

Midway through the billing cycle, Muster LLC adds 2 more employees, with 2 days remaining before the next billing date.

Their next monthly invoice reflects:

14 employees total (12 original + 2 added) → 14 × $10 = $140
Muster LLC then removed 4 users before the next billing date → 10 × $10 = $100 (actual amount after the 4 removals)

Final invoice for the current cycle: $140 − $40 = $100 Next billing cycle amount: $100 − $40 = $60 (USD)

Note: Credit for removed employees is applied to the next billing cycle, not refunded immediately — as shown in the $40 credit adjustment above.