2026-08-083 min read

How upgrading from monthly to yearly billing works

Why the yearly upgrade charges in full with a separate refund of unused monthly time, rather than a single discounted charge.

billing upgradeCreemprorationsubscription

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App Store Helper Editorial Team

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Direct answer

A monthly Pro subscriber can move to the yearly plan directly from the pricing page without going through a new checkout flow. The switch charges the full yearly price immediately, and the unused portion of the current monthly period is refunded separately as its own transaction back to the original payment method — it is not a discounted "difference" charge. Both the charge and the refund appear as distinct line items, which is worth knowing before the first upgrade so the two transactions aren't mistaken for a billing error.

Why it's a full charge plus a refund, not a prorated difference

Some billing systems calculate a single net charge equal to the price difference between plans. This one doesn't — it charges the yearly plan in full and refunds the unused monthly time as a separate transaction. The net cost to the subscriber works out close to a prorated difference, but it arrives as two transactions instead of one, and the refund can take a few business days to settle even though the upgrade itself is immediate.

The upgrade is confirmed in two steps, on purpose

Clicking upgrade on the yearly card doesn't charge immediately — it first shows a confirmation state explaining that the yearly price will be charged in full with a separate refund following, and only a second click actually runs the charge. That two-step pattern exists specifically because this action charges real money without an intermediate checkout page, so the confirmation step is the only checkpoint before the charge happens.

What happens if the upgrade fails partway through

If the upgrade request fails after being sent, the subscription is not silently left in an unclear state — the account is designed to reconcile against the actual subscription status shortly after, rather than assuming success or failure. If the plan shown after an upgrade attempt doesn't look right, a manual sync (covered separately) resolves it faster than repeating the upgrade attempt.

Common mistakes

  • Expecting a single discounted charge instead of a full charge plus a separate refund, and assuming the full charge is an error.
  • Clicking upgrade twice in quick succession, not realizing the first click is a confirmation step rather than the charge itself.
  • Assuming an upgrade failed just because the displayed plan hasn't updated instantly, without checking again after a short wait or triggering a sync.

Checklist

  1. Expect two transactions — a full yearly charge and a separate refund — not one net charge.
  2. Use the confirmation step deliberately; the first click is not the charge.
  3. If the plan doesn't reflect the upgrade right away, wait briefly or sync before assuming something went wrong.

Operating rule

The yearly upgrade is full price now, refund of unused time separately — not a single discounted transaction — and the confirmation click exists precisely because real money moves without a separate checkout page.