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Subscription Billing Cycles

Understand how subscription billing cycles work.

3 min readUpdated: 1/25/2026

Subscription Billing Cycles

Understand when and how subscribers are billed.

How Billing Cycles Work

Anniversary Billing (Default)

Bill on the signup date each cycle:

  • Customer signs up January 15
  • Billed monthly on the 15th
  • Or yearly on January 15

Calendar Billing

Bill on a fixed date:

  • Always bill on the 1st
  • Or the 15th
  • All customers billed same day

Configure in plan settings.

Billing Cycle Examples

Monthly Subscription

Customer signs up: March 10

First charge: March 10

Next charges: April 10, May 10, June 10...

Yearly Subscription

Customer signs up: March 10, 2025

First charge: March 10, 2025

Next charge: March 10, 2026

What Happens on Billing Day

  1. Invoice generated
  2. Payment attempted
  3. If successful:
  • Receipt sent
  • Access continues
  1. If failed:
  • Retry scheduled
  • Customer notified

Handling End-of-Month Dates

For dates that don't exist in all months:

Customer signs up: January 31

February charge: February 28/29

March charge: March 31

We use the last day of shorter months.

Proration

When subscription changes mid-cycle:

Upgrades:

  • Charged prorated amount for remainder of cycle
  • Or credit toward upgrade

Downgrades:

  • Credit applied to next invoice
  • Or immediate adjustment

Learn more about proration →

Billing Cycle Anchor

Force billing to a specific date:

  1. Open subscriber settings
  2. Set Billing Anchor Date
  3. Next renewal adjusts to that date

Useful for:

  • Aligning team billing
  • Corporate billing cycles
  • Quarterly alignment

Viewing Upcoming Renewals

Go to SubscriptionsUpcoming:

  • See who renews when
  • Revenue forecast
  • Prepare for payment issues

Related Articles:

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