Skip to main content

Upgrades & Downgrades

To modify an active subscription through the user interface:

  1. Go to the "Customers" section;
  2. Select a customer from the list;
  3. Click "Change plan";
  4. Select the new plan you want to assign to the customer; and
  5. Click "Change plan" to save.

You can also terminate a subscription and create a new one via the API (learn more).

Overview

When modifying a subscription, Lago will assess whether the change is an upgrade or a downgrade. The result is determined by the monthly value of the plans (i.e. the base amount as defined in each plan model, calculated on a monthly basis, and excluding charges).

Here are some examples:

Initial plan modelNew plan modelResultComments
$20 per month$40 per monthUpgrade$40 > $20
$20 per month$15 per monthDowngrade$15 < $20
$20 per month$300 per yearUpgrade$300 / 12 = $25 > $20
$20 per month$180 per yearDowngrade$180 / 12 = $15 < $20

In the case of an upgrade, the initial subscription will terminate immediately and the new subscription will start right away. However, in the case of a downgrade, the initial subscription will terminate at the end of the current billing period.

caution

If you upgrade the subscription during the trial period of the initial plan, the customer will lose the remaining days of their trial. To avoid this, you should ensure the new plan also includes a trial period.

Impact on invoicing

When a subscription terminates as part of a downgrade, Lago automatically generates a final invoice including charges and/or the outstanding subscription fee (only if the plan had to be paid in arrears). It may also generate an invoice for the new subscription if the new plan has to be paid in advance.

When a subscription terminates as part of an upgrade, Lago automatically generates a final invoice including the outstanding subscription fee (only if the plan had to be paid in arrears) and may also generate an invoice for the new subscription if the new plan has to be paid in advance. Regarding charges, if the new plan includes the same type of charges as the old one, the current usage is transferred to the new plan.

Subscription fees are calculated on a pro rata basis according to the number of days.

Consider the following example:

Your customer is on the standard plan (e.g. $20 to be paid in advance each month). Therefore, beginning of May, an invoice of $20 was generated for them.

The customer now wants to switch to the premium plan (e.g. $40 to be paid in advance each month). If you modify their subscription on May 11th, Lago will generate a new invoice of $7.10.

There are 21 days left until the end of the month (including May 11th), so the calculation is:

21 days x $40 / 31 days = $27.10 - $20 already invoiced = $7.10