Billing
Proration in SaaS Billing: Calculations and Edge Cases
Proration in SaaS billing is the calculation of partial charges or credits when a customer's subscription changes mid-billing cycle — whether through upgrades, downgrades, plan switches, or cancellations. According to Maxio's 2025 SaaS Growth Report, 43% of SaaS companies now combine subscription and usage-based components[1], which