In plain English
Instead of covering a whole billing cycle, this charge covers only the part of the period that is still left. The amount is worked out in proportion to the remaining time after the product or service starts during a billing period that is already underway.
In context
Here, it labels the adjusted amount due for a plan switch when the new plan applies only to the remaining part of the current billing period.
- Situation
- Managing subscriptions, trials, renewals, proration, upgrades, and cancellations
- What it communicates
- labels the adjusted amount due for a plan switch
Meaning limits
By itself, the term does not say what the full-period price is or whether the shown amount is the only amount involved.
Examples
“Because the service started on the 20th, the first invoice included only a prorated charge for the last ten days of the month.”
“After the mid-month plan switch, a prorated charge covered the new plan until the next billing date.”