Understanding how billing cycles work helps you anticipate when invoices are generated, how renewal dates are calculated, and what happens when you change your plan mid-cycle. This article covers everything you need to know about the Rackwave billing calendar.
Available Billing Cycles
| Cycle | Invoice Frequency | Payment Timing | Saving vs Monthly |
|---|---|---|---|
| Monthly | Every 30 days | Billed in advance at the start of each period | Standard rate |
| Yearly | Once per year | Full year billed in advance | Up to 20% discount |
| One-time | Single invoice only | Paid once; no renewal | Varies by product |
How the Billing Period Works — Monthly Example
When you activate a paid monthly plan, your billing period begins on the activation date and runs for exactly 30 days:
| Event | Date | What Happens |
|---|---|---|
| Plan activated | June 1 | Invoice generated and due. Monthly quota of 30,000 emails unlocked for period. |
| Mid-period | June 1–30 | Platform active; usage accumulates against monthly quota. Daily/hourly limits reset each day/hour. |
| Renewal date | July 1 | New invoice generated for the next period. Monthly quota resets to 0. Service continues uninterrupted if invoice paid. |
| Invoice due date | Typically 7 days after generation | If unpaid after due date, subscription moves to overdue status and suspension warning issued. |
When Quotas Reset
| Quota Type | Resets When |
|---|---|
| Monthly sending quota | At the start of each new billing period (your renewal date each month) |
| Daily sending limit | Every day at midnight in your configured timezone |
| Hourly sending limit | Every 60 minutes from the top of the hour in your configured timezone |
Yearly Billing — How It Works
On a yearly plan you pay for 12 months upfront at a discounted rate. Key points:
- A single invoice is generated for the full annual amount on the activation date.
- Your monthly email quota still applies per calendar month within the year — it does not stack across months.
- At the end of 12 months a new annual invoice is generated for the next year.
- If you want to switch from yearly back to monthly, the change is scheduled for the end of your annual period.
- Yearly plans are non-refundable for unused months if you cancel mid-year.
Auto-Renewal Behaviour
| Scenario | What Happens at Renewal |
|---|---|
| Invoice paid on time | Service renews seamlessly; quota resets; no interruption |
| Invoice unpaid at due date | Overdue reminder sent; suspension warning issued |
| Invoice unpaid after grace period | Service suspended; access blocked until payment made |
| Downgrade scheduled for renewal | New lower-tier plan activates; new lower price invoiced |
| Cancellation before renewal | No new invoice generated; service ends at period end |
How Mid-Cycle Changes Affect Billing
When you upgrade, downgrade, or change billing cycle mid-period, proration is applied:
- Upgrade mid-cycle — you are charged the prorated difference for the remaining days in the current period. The higher quota is available immediately.
- Downgrade mid-cycle — no immediate charge change. The lower price applies from the next renewal. Current period continues at existing quota.
- Switch monthly to yearly mid-cycle — the remaining days on the monthly plan are credited toward the annual invoice.
Invoice Due Dates
All invoices have a standard payment term of 7 days from the invoice date. Payment terms are shown on each invoice. If you need extended payment terms for enterprise billing, contact the Rackwave accounts team.