Understanding Pro-Rata Discounts

Understanding Pro-Rata Discounts


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Pro-rata discounts are a common billing practice that adjusts your costs and data allocation based on the specific day of the month you subscribe to a package. This approach ensures fairness and accuracy in your billing cycle.

Example Scenario:

Imagine you decide to subscribe to a 200GB package priced at R478.00 per month, and you initiate this subscription on the 14th day of the month. In a month with 30 days, we calculate the pro-rata cost as follows:

1.    Daily Rate Calculation: We divide the full monthly price by the total number of days in the month.

R478.00 / 30 days = R15.93 per day.

2.    Pro-Rata Cost Calculation: Next, we determine the pro-rata cost by multiplying the daily rate by the remaining days in the month.

R15.93 x 16 remaining days = Pro-rata cost of approximately R245.88.

3.    Pro-Rata Data Allocation: Along with the pro-rata cost adjustment, you will also receive a pro-rata data allocation based on your 200GB monthly data limit.

200GB / 30 days = 6.66GB per day.

6.66GB x 16 remaining days = Pro-rata data allocation of approximately 106.56GB.

It's important to note that pro-rata charges are applied immediately upon signing up for all services to ensure that you are billed accurately from the start of your subscription.

Uncapped Data Packages Exception:

For Uncapped packages, there is no pro-rata data allocation. Uncapped packages offer unlimited data, so there's no need for a pro-rata adjustment in this case.

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