In order to understand how the pro-rated charges work, it is important to review the initial account activation process to establish a foundation for the examples.
The day that you sign-up for your first paid plan bundle is used as your account start date for billing purposes. From that moment on, any purchases in vSPACE that you make (individual algos, algo bundles, or plan upgrades) are all referenced back to that day of the month for several reasons:
Let’s look at how this works in an example with an algo bundle.
1. You sign-up for the Activate Plan ($15/month) on the 1st of the month.
2. After two weeks (on the 15th of the month), you choose to purchase the Spikes algo bundle that is not included in your current plan. The monthly cost for the Spikes algo bundle is $3.99/month.
3. When you purchase the Spikes algo bundle on the 15th, the system will pro-rate that charge for the current billing cycle using the following formula:
4. This pro-rated charge will take you to your plan billing date of the 1st of the month, at which point, you would be charged the full monthly fee for your Activate Plan AND your Spikes algo bundle.
Let’s look at another example, this time from the perspective of upgrading to a new plan.
1. You sign-up for the Activate Plan ($15/month) on the 1st of the month along with the Health and Balance algo bundle ($5.99/month).
2. After two months, you choose to upgrade to the Advanced Plan on the 1st of the month, so there is no mid-cycle prorated price to worry about.
3. When you click on the Advanced Plan in vSPACE, the displayed monthly price of your new plan is calculated using the following formula:
4. So, for this day, you would see a charge of $20.99 (cost of your old plan and the single algo bundle), and a charge of $29.01 (cost difference between old plan and algo bundle and your new plan). Adding these charges together yields a sum of $50, which is the same cost as your new upgraded plan.
5. For the next month on the 1st, you would see a single charge of $50 (cost of the upgraded plan).
For your reference, below is what a pro-rated price of an individual algo would look like in vSPACE, as well as the initial pro-rated price of a plan upgrade. Both examples are mid-cycle examples.