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How does Stripe's prorating work? [closed]

From Stripe's documentation under updating a user's subscription plan:

By default, we prorate subscription changes. For example, if a customer signs up on May 1 for a $10 plan, she'll be billed $10 immediately. If she then switches to a $20 plan on May 15, on June 1 she'll be billed $25 ($20 for a renewal of her subscription and a $5 prorating adjustment for the previous month).

Shouldn't the charge on June 1st be $30; $20 for the renewal and $10 (half of $20 because half of May) for the previous month? Did Stripe get their calculations confused, or am I dead wrong on how prorating works?

like image 479
Sam Avatar asked Nov 11 '13 21:11

Sam


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How does Stripe proration work?

Prorating changesStripe bills subscriptions with conventional fixed-rate prices and per-seat prices in advance: the customer paid for the current recurring interval on the previous invoice. The proration_behavior flag determines whether the customer receives a credit for the unused time from the previous invoice.

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1 Answers

Another way to look at it is:

For the two months the customer should pay

$5 for May 1 to 15
+ $10 for May 16 to 31
+ $20 for June
= $35 total
- $10 already paid
= $25
like image 129
Eli Algranti Avatar answered Sep 20 '22 05:09

Eli Algranti