[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"glossary-proration::en":3,"gloss-cluster-proration::en":23,"gloss-next-proration::en":9},{"slug":4,"category":5,"name":6,"definition":7,"meta_desc":8,"faq":9,"schema_markup":9,"related":10},"proration","saas","Proration","Proration is the adjustment of a subscription charge to cover only the portion of a billing period a customer actually used a plan. When someone upgrades from a $10 to a $30 plan halfway through a monthly cycle, proration charges roughly the $20 difference for the remaining days rather than a full $30, and the next invoice returns to normal. It also works in reverse: downgrades and cancellations generate prorated credits. Why it matters: mid-cycle plan changes are constant in SaaS, and getting proration wrong is a common source of billing disputes, support tickets, and revenue leakage. Customers notice when they're overcharged; you lose money when upgrades aren't captured. Practical note: billing platforms like Stripe and Paddle handle proration automatically, but you should decide your policy deliberately — whether to prorate upgrades immediately or at next renewal, and whether downgrades credit cash or account balance. Test the edge cases (same-day multiple changes, annual-to-monthly switches) before launch, because they're where the math breaks.","Proration adjusts a subscription charge to cover only the part of the billing period actually used — upgrade mid-month and you pay the difference, not full price.",null,[11,14,17,20],{"slug":12,"name":13},"dunning","Dunning",{"slug":15,"name":16},"overage","Overage",{"slug":18,"name":19},"seat-based-pricing","Seat-Based Pricing",{"slug":21,"name":22},"usage-based-pricing","Usage-Based Pricing",[24,28,32,35,38,41,44,48,51,54,57,60],{"slug":25,"category":5,"name":26,"updated_at":27},"activation","Activation","2026-08-24T02:46:36+00:00",{"slug":29,"category":5,"name":30,"updated_at":31},"aha-moment","Aha Moment","2026-08-24T02:46:37+00:00",{"slug":33,"category":5,"name":34,"updated_at":31},"annual-contract-value","Annual Contract Value (ACV)",{"slug":36,"category":5,"name":37,"updated_at":27},"api-first","API-First",{"slug":39,"category":5,"name":40,"updated_at":27},"arpa","Average Revenue Per Account (ARPA)",{"slug":42,"category":5,"name":43,"updated_at":27},"arr","Annual Recurring Revenue (ARR)",{"slug":45,"category":5,"name":46,"updated_at":47},"auto-renewal-clause","Auto-Renewal Clause","2026-08-24T02:46:38+00:00",{"slug":49,"category":5,"name":50,"updated_at":47},"build-vs-buy","Build vs. Buy",{"slug":52,"category":5,"name":53,"updated_at":31},"burn-multiple","Burn Multiple",{"slug":55,"category":5,"name":56,"updated_at":47},"burn-rate","Burn Rate",{"slug":58,"category":5,"name":59,"updated_at":27},"cac","Customer Acquisition Cost (CAC)",{"slug":61,"category":5,"name":62,"updated_at":27},"cdn","Content Delivery Network (CDN)"]