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How Does the System Calculate the Proration Credit Value?

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Written by Chan Nier
Updated on March 31, 2025

In the examples above, we went over the scenarios where the user decides to change their plan within the same day. What if this user decides to change their plan after a few days instead?

Example 1

Let's assume the member signed up on April 20th and changed their plan on April 28th (technically 9 full days) and let's assume the proration_deduct_first_day is disabled. The proration credit value would be calculated like the following:

$200 divided by 365 equals $0.55,  and this will be the daily value of the original membership plan they signed up to.

$0.55 times 8 days (not deducting for the first day) that past equals $4.40 of plan usage so far on their current plan.

$200 minus $4.40 equals $195.60, and this will be the total value of the prorated credit the member will receive

Example 2

Let's assume the member signed up on April 20th and changed their plan on April 28th and let's assume the proration_deduct_first_day is enabled. The proration credit value would be calculated like the following:

$200 divided by 365 equals $0.55 and this will be the daily value of the original membership plan they signed up to.

$0.55 times 9 days (the full number of days from April 20 - 28) equals $4.95 and this will be the total value of the prorated credit that will be deducted from the total

$200 minus $4.95 equals $195.05 and this will be the total value of the prorated credit the member will receive


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