Understanding App Plan Upgrades and Downgrades

When you change your app subscription plan, Shopify automatically adjusts your billing using proration. This ensures you only pay for what you use and receive credits for any unused time.

How Plan Changes Work

When you switch plans (upgrade or downgrade):

• Shopify cancels your current recurring app charge.
• A new charge is created for the new plan.
• You will be asked to approve the new subscription charge.
• Depending on the app setup, the new charge may start immediately or at the end of your current billing cycle.

Upgrading Your Plan

If you upgrade to a higher-priced plan before your billing cycle ends:

• The unused time from your current plan is converted into a prorated credit.
• This credit is automatically applied to your new plan invoice.
• You only pay the remaining difference.

How the credit is calculated

Formula: Current plan price ÷ Total billing days × Unused days

Example:

Current plan: $39/month

Upgrade to: $105/month

Upgrade on: Day 11 of a 30-day cycle

Unused days remaining: 19 days

Calculation:

• Daily rate = $39 ÷ 30 = $1.30/day
• Prorated credit = $1.30 × 19 = $24.70
• New plan price = $105 - $24.70 = $80.30

Downgrading Your Plan

If you downgrade to a lower-priced plan before your billing cycle ends:

• Shopify calculates the price difference between your current and new plan.
• The remaining unused time is converted into an application credit.
• This credit stays in your Shopify account and can be used for future app charges.

How the credit is calculated

Formula: (Current plan price – New plan price) × Remaining days ÷ Total billing days

Example:

Current plan: $15/month

Downgrade to: $5/month

Downgrade on: Day 15 of a 30-day cycle

Calculation:

• Price difference = $10
• Remaining cycle = 15 days
• Credit = $10 × (15 ÷ 30) = $5

The merchant will receive $5 application credit in their Shopify account.

Updated on: 12/06/2026