How seat-based billing works for your customers
Plans can include a number of seats at no extra cost. When your customer uses more seats than included, they're charged per extra seat.
Plan Pro: 5 included seats, $25/extra seat
Your customer has 8 seats
Included: 5 seats (no charge)
Extra: 3 seats × $25 = $75/moMore included seats benefits your customers, so it applies right away.
You increase Plan Pro from 10 to 15 included seats.
Your customer has 12 seats (was paying for 2 extra at $50/mo).
After the change:
→ All 12 seats are now within the 15 included
→ Extra seat charges drop to $0
→ Your customer sees the change immediatelyFewer included seats harms your customers, so it applies at renewal.
You decrease Plan Pro from 15 to 10 included seats.
Your customer has 12 seats (all included, $0 extra).
This period: Still 12 included, $0 extra
At renewal: 10 included + 2 extra = $50/moSeat unit prices use current-period snapshots: a lower price applies immediately, while a higher price starts next period.
| Change | What your customer pays |
|---|---|
| Lower the price | New lower price in the current period |
| Raise the price | Old price this period; new price next period |
On an upgrade, your customer is charged the new plan's full price and credited for the unused days of the old plan's base price. Extra-seat charges already paid are not credited; extra seats on the new plan are billed for the full new period in advance.
Your customer is on Pro ($99/mo, 5 included seats, $25/extra seat).
They have 8 seats — paying $174/mo total (5 included + 3 extra).
They upgrade to Business ($299/mo, 10 included seats, $20/extra seat).
On day 15 of their cycle.
Charge:
New plan: $299 (full price — the billing cycle restarts today)
Extra seats: $0 — their 8 seats are within the 10 included
Credit:
Plan base: $99 × (15/30) = $49.50
Extra seats: $0 — extra-seat charges already paid are not credited
They pay today: $249.50Your customer's 8 seats are now covered by the Business plan's 10 included seats. If they had 12 seats, the 2 above the included 10 would be billed for the full new period in advance: 2 × $20 = $40.
How is this guide?