Subscription billing terms
Set up subscription terms with multiple billing periods, configure end-of-term renewal behavior, and manage subscription changes and cancellations with precise timing control.
Definition
Key benefits
Key details
Billing structure for plans
Every plan has two key billing settings that work together to define the subscription's payment structure.
Billing period — The recurring interval at which the customer is charged (e.g., monthly, quarterly, annually). The billing period is set at plan creation and cannot be changed afterward, as doing so would affect the term length of active subscriptions. If you need a different billing period, create a new plan.
Subscription term — The overall commitment length, which may contain one or more billing periods. For example, an annual subscription billed quarterly has a one-year term with four billing periods. The term can be adjusted during subscription creation or editing, even if it differs from the plan default.


End-of-term behavior
Every plan requires a renewal behavior setting that determines what happens when a subscription term ends.

- Auto-renew — The subscription automatically starts a new term at the end of the current one. Ideal for recurring services like streaming platforms where minimizing churn is a priority.
- Expire — The subscription ends when the term completes without renewal. Useful for installment-based billing, such as device payment plans that end once all installments are paid.
Adding a subscription
When you add a subscription to an account, the plan's term settings are applied by default. You can override them during creation.

Timing
You can set a subscription to start immediately or schedule it to begin on a specific date.

Subscription details
The subscription details view includes the following term-related fields:
| Field | Description |
| Current Period | The ongoing billing cycle. |
| Current Term | The start and end dates of the active subscription term. |
| Remaining Periods | Outstanding billing cycles within the current term. |
| Term Balance | Estimated outstanding billable amounts for the term. |
| Renews On | The renewal date for subscriptions set to auto-renew. |
| Ends On | The expiry date for subscriptions set to expire at term end. |
| Started On | The date the subscription was activated. |


Change a subscription
Subscription changes — upgrades, downgrades, or invoicing method updates — can be applied at three points in time. Choose the timing that fits the nature of the change and your customer relationship.
Timing options
Immediately — The change takes effect right away and generates an invoice. If automatic collection is enabled, a transaction is attempted using the billing information on file. If it fails, the invoice and subscription enter the dunning process.
At next bill date — Recurly stores the change and applies it on the customer's next invoice. The customer continues on the current plan until the end of the billing cycle.
At term renewal — Recurly stores the change and applies it when the subscription term renews. No proration is needed — the subscription is adjusted and the customer is invoiced at the new amount on the renewal invoice.
Apply an immediate change

For a full breakdown of proration logic for immediate changes, see Change Subscription.
Apply a change at the next bill date

Apply a change at term renewal

Plan term transitions
When changing a subscription to a different plan, Recurly handles term continuity based on whether the billing structure changes.
Same billing period and term length — Recurly preserves the remaining billing periods and applies standard proration rules. You can also choose to modify the term length if needed.
Different billing period or term length — The subscription term restarts and new charges aren't prorated.
For more details, see Change Subscription — plan period changes.
Cancel a subscription
Canceling ends a subscription at a future date — the customer continues billing until the chosen cutoff. Terminating ends it immediately, mid-cycle. Once a subscription expires, it can't be reactivated. A canceled (but not yet expired) subscription can be reactivated if the customer changes their mind before the renewal date.

Terminate immediately
Ends the subscription now, shifting its status from active to expired. If termination occurs mid-cycle, you can choose to refund the customer for any upfront fixed fees or bill them for any unbilled usage.
Cancel at the next billing date
The subscription continues until the current billing period ends, then expires. No further invoice is generated after cancellation takes effect.
Cancel at the term's end
The subscription continues billing for the remainder of the term, then expires when the term end date is reached.
Updated 18 days ago