You’ve probably seen the option to prorate when adding a membership to a member, hold, or cancellation — and wondered what it actually does. Here’s the rundown.
What is Prorating?
Prorating means adjusting the charge so that the member only pays for the part of the period they actually use.
For example:
A member pays monthly, but they join halfway through the month.
If you prorate, they only pay for the days they’re actually a member that month — not the full month.
Same goes for cancellations — if they leave before the end of the period and you prorate, they only get charged up to the date they leave.
When is Prorating Applied?
You’ll see prorating as an option in a few places:
Starting a membership mid-billing cycle
Cancelling a membership partway through a period
Placing a hold during a billing period
When a member starts a new membership, prorating (prorata) will usually be applied any time there’s a difference between their start date and their first payment date, referred to as the upfront fee.
This ensures they only pay for the time they’re actually active before the first full billing cycle kicks in.
Why Use It?
Prorating is a good way to keep things fair and transparent for members — they only pay for what they use.
It also helps avoid awkward conversations about overcharging or needing to issue refunds later.
Example:
Member starts a monthly $100 membership on the 15th of a 30-day month.
If you prorate, they’d only pay about $50 for that first half-month, then start paying $100/month on the next full cycle.
Without prorating, they’d still pay the full $100 for that partial month — which usually doesn’t feel fair to the member.
How to Use It?
If you wish to control the default prorating behaviour, there are some settings in Advanced Configuration that you can adjust.
Here’s where to find them:
Settings -> Advanced Configuration -> Member Holds -> How holds affect billing
(controls whether holds keep the same billing day and Prorate, or move the member's next billing day)Settings -> Advanced Configuration -> Membership -> Prorate first payment
(controls whether the system automatically prorates the first payment when adding a new membership)Settings -> Advanced Configuration -> Membership -> Prorate final payment
(controls whether the final payment is adjusted when a membership expires)Settings -> Advanced Configuration -> Membership -> Prorate cancellation payment
(controls whether the final payment is adjusted when a membership is cancelled)
Please adjust these settings to match your business needs.