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How is the subscription fee calculated, if I "Upgrade or Downgrade"my plan in the middle of a payment billing cycle?

If you are currently subscribed yearly to the Launch plan with a billing period from 01 January 2025 to 31 December 2025, and you decide to upgrade to the Growth tier in 01 June 2025, your subscription fee will be calculated based on the price difference between the two plans for the remaining period of the cycle.

Example

•  Current Plan (Launch): RM660/year

•  New Plan (Growth): RM1,320/year

•  Billing Cycle: 01 January 2025 - 31 December 2025

•  Upgrade Month: 01 June 2025

•  Months Used: January to May (5 months)

•  Balance Months Not Used: Jun to December (7 months)

Step-by-Step Calculation:

Amount Paid for the Current Plan:

Formula = Current Plan Yearly Fee / 12 x Balance Months

              = RM660/12 × 7

                = RM385

Amount Due for Upgrade: RM1,320 - RM385 = RM935

Formula = New Plan Yearly Fee - Amount Paid for the Current Plan but not used

              = RM1,320 - RM385

                = RM935

You will be required to pay RM935 to upgrade your subscription to the Growth tier. Once upgraded, your billing cycle will be change, new billing cycle and membership is 01 Jun 2025 to 31 May 2026.

This guide explains how UrbanSoft calculates subscription fees when you upgrade or downgrade your plan mid-cycle. You will learn how proration works, how unused balances are credited, and how your billing date or invoice amounts are adjusted.

When Do You Use This?

Use this guide when you plan to change your subscription tier (upgrading for more features or downgrading to reduce costs) before your current billing cycle ends.

Before You Start

• You need:

  • Administrator access to your UrbanSoft account.

  • Access to your current billing details and renewal dates under Admin > Subscription & Billing.

• Precautions:

  • Review your active add-ons, as changing your core plan may impact module compatibility or pricing.

  • Understand that mid-cycle changes take effect immediately, whether it is an upgrade or downgrade.

Step-by-Step

1. Log in to your UrbanSoft account with Administrator privileges.

2. Go to Admin > Subscription & Billing.

3. View your Current Plan and click + Top Up Credit / Upgrade

4. Browse the available upgrade plan or downgrade plan.

5. Select the new plan billing frequency (Monthly/Yearly) you wish to switch to.

6. Review the Prorated Invoice Summary displayed on screen:

   • The system calculates the remaining unused credit from your current plan and subtracts it from the new plan cost. You only pay the prorated difference for the remaining days of the current cycle.

7. Click Confirm Plan Change to complete the transaction.

8. Download the updated tax invoice or view the billing summary under Billing History.

Expected Result

Your subscription plan is updated instantly (for upgrades) or scheduled for the next cycle (for downgrades). Your billing statement will reflect the prorated adjustment accurately.

Important Notes

• Upgrades are effective immediately so you can access new features right away, with a prorated charge applied for the rest of the current billing period.

• Downgrades typically take effect at the start of the next billing cycle to ensure you retain access to features you have already paid for.

• Any remaining account credits from plan adjustments will automatically be applied to your next billing cycle invoice.

Common Mistakes

• Assuming mid-cycle upgrades reset your billing date without reviewing the prorated charge.

• Downgrading and expecting an immediate cash refund instead of account credits or end-of-cycle adjustment.

• Forgetting to verify user seat limits or add-on compatibility before switching to a lower plan tier.

Different Angles: Same Stories, Same Content, New Perspective

• How does prorated billing work when switching UrbanSoft plans?

• Will I get a refund if I downgrade my plan before the month ends?

Related Articles

• How do I upgrade or downgrade my UrbanSoft subscription plan?

• How can I cancel my subscription plan or purchased add-ons?

• How can I view and download my billing invoices?