Proration
Proration is the partial charge or credit Stripe applies when a subscription changes mid-cycle, so the customer pays only for the time on each plan.
Updated October 1, 2026
Proration is the adjustment a billing system makes when a subscription changes partway through a billing cycle. The customer is charged or credited only for the part of the period after the change.
How proration works
When a customer upgrades, downgrades, or changes quantity mid-cycle, Stripe splits the period at the change date and creates two invoice items:
- A credit for the unused time on the old price.
- A charge for the same remaining time on the new price.
The difference is what the customer owes or gets back. By default these items wait for the next invoice. You can also invoice them right away.
Proration = (new price − old price) × (time remaining ÷ full period)
Example
A customer on a $20/month plan upgrades to $50/month halfway through the cycle. Stripe credits $10 for the unused half of the old plan and charges $25 for the remaining half of the new plan. The next invoice includes a net $15. The cycle after that bills the full $50.
Why it matters
Customers can upgrade the moment they need to, and you collect the expansion revenue right away. Downgrades don't double-charge anyone. Prorations show up as separate line items, so an invoice total can differ from the plan price. Customers sometimes ask about this, so be ready to explain it.