**Understanding Prorated Billing for Ad-Free Subscription Upgrades**

When you upgrade to our ad-free tier, here’s what happens:

**Fixed Price for Ad-Free Tier:**The cost of the ad-free tier is a standard rate, visible at checkout. This price does not vary based on any previous promotional offers or subscription plans.**Ending Promotional Offers:**By choosing to upgrade, you are concluding any ongoing promotional offer and transitioning to the standard price of the ad-free tier.**Prorated Credit:**Any unused portion of your existing subscription is calculated and credited towards the upgrade. This ensures you only pay the difference based on the remaining value of your initial subscription.

**Example: Upgrading to the Ad-Free Tier**

Customer: Initially paid $49.99 for a special offer for 365 days of access.

- Days Used: 83 days
- Days Remaining: 282 days

Calculating Unused Credit:

- Daily Rate: $0.14 per day ($49.99/365)
- Unused Credit: ~$39 (for the remaining 282 days)

Upgrade Cost Calculation:

- Ad-Free Tier Cost: $149 (fixed price)
- Minus Unused Credit: $149 - $39

**Total Upgrade Cost: $110**

**Additional Example: Upgrading to Ad-Free Tier**

To further clarify our upgraded subscription process, let’s consider another scenario:Initial Subscription Details:

- Initial Payment: Customer paid $99.99 for an annual subscription.
- Subscription Duration: 365 days.
- Days Used: 45 days.

Upgrade to Ad-Free Tier:

- Cost of Ad-Free Tier: $199.99.

Calculating the Prorated Credit:

- Daily Rate Calculation: We calculate the daily rate of the initial subscription. In this case, it’s approximately $0.27 per day ($99.99/365 days).
- Unused Subscription Value: Since the customer has used 45 days, they have 320 days remaining (365 - 45 days). The unused subscription value is then 320 days x $0.27/day, which equals approximately $86.40.
- Upgrade Cost Calculation:

- Ad-Free Tier Cost: $199.99.
- Minus Unused Credit: $199.99 - $86.40.

**Total Upgrade Cost: $113.59.**

Note on Applicable Taxes:

- Taxes: Please note that the final amount may vary based on local tax laws and the tax rate applicable to your region.
- Billing Statement: Your final bill will include these taxes, clearly itemized for transparency.

Key Points for Customers

- Fixed Upgrade Price: The ad-free tier has a consistent price for all, visible at checkout.
- Seamless Transition: Your transition to the ad-free tier automatically factors in the unused portion of your existing plan.
- Fair Billing: You’re billed fairly based on the remaining value of your current subscription when upgrading.