If you place an order for a product in the middle of the month, we will only charge you for the days you actually use it during the first period. This method is known as ‘pro rata’ - Latin for ‘in proportion’ - or proportional billing. Here you can find out how it works and why we use it.
What does ‘pro rata’ mean?
We bill for most of our products on a fixed billing date: the 1st of the month. If you place an order between two billing dates, you’ll pay a pro-rata amount for the period up to the next billing date. From then on, the standard price for your chosen payment cycle applies - always on the first of the month.
How it’s calculated
The pro-rata amount is calculated based on the number of days remaining until the billing date:
Pro-rata amount = price per billing period × days used ÷ days in the billing period
The actual calendar days are counted, including the day the order was placed.
Examples
All examples relate to a web hosting package costing €14.99 per month or €161.94 per year (including VAT in each case):
- Order placed on 15 September, monthly payment: You pay €7.99 pro rata for the period from 15 to 30 September (16 out of 30 days). From 1 October, you pay the standard rate of €14.99 on the first day of the month.
- Order placed on 28 September, monthly payment: This would only cover 3 days up to the billing date. As such short periods would trigger a separate mini-invoice, we bill the first period up to the end of the following month: 28 September to 31 October (34 days) for €16.99. The regular billing continues from 1 November.
- Order placed on 15 September, annual payment: The first period runs from 15 September to 31 August of the following year (351 days) and costs €155.73 on a pro rata basis. From 1 September, the full price is charged annually.
Minimum period
If the period until the next billing date is very short - less than 5 days for most products - we extend the first period by one billing cycle. This means you won’t receive an invoice for just a few cents, and the first regular billing date will be one cycle later.
Not affected: domains, SSL certificates and licences
We do not charge for domains, SSL certificates and licences on a pro rata basis. These services are invoiced to us directly by the relevant registry, certification authority or manufacturer for a full period - usually one year from the date of registration or issue. Therefore, your billing period begins on the day of the order and runs for the full term, for example from 15 September to 14 September of the following year. Renewal takes place on this date each year.
We also perform billing for certain other products without a fixed cut-off date. You can see which rule applies before completing your order during the ordering process.
Why we use the pro rata method
- Fair: In the first period, you only pay for the days on which you use the product - not for a whole month.
- A standard billing date: All products are billed on the same date - the first of the month. Instead of receiving individual invoices spread throughout the month, you’ll receive your regular invoices in one batch at the same time.
- Overview for accounting purposes: Billing periods always start at the beginning of the month and can be clearly allocated to a specific month or year.
- Suitable for consolidated invoices: For customers with many products, amounts can easily be summarised on a single consolidated invoice.
Where you’ll encounter pro-rata amounts
- When placing an order: During the ordering process, we highlight the pro-rata calculation and show the date up to which the pro-rata billing applies and when the regular billing period begins. The amount due on the due date is therefore often lower than the regular price.
- On the invoice: Items charged on a pro-rata basis are marked with their period. You can find your invoices under Billing → Invoices.
- When upgrading your package: If you switch to a larger package, you only pay the price difference on a pro rata basis for the remaining days until the next billing date - see Upgrading your hosting package.
- When booking plan options: Additional options are also charged on a pro-rata basis until the next billing date.
