> ## Documentation Index
> Fetch the complete documentation index at: https://docs.stigg.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Updates to subscriptions with usage-based pricing

Usage-based pricing allows customers to pay only for what they consume. This model has grown significantly in recent years and continues to expand.

A well-known example is [Stripe](https://stripe.com/pricing), which charges per successful card transaction, allowing smaller companies to start with low costs and scale their spending with actual usage.

When usage-based pricing is enabled, **upgrade and downgrade behaviors are inherently immediate**:

* Any pricing update takes effect right away.
* All usage reported after the change is billed using the updated price.

## Unit increases in subscriptions with true-up pricing

When **true-up pricing** is enabled, changes to unit quantities are aggregated and billed at the end of the billing cycle.\
This model is common when unit counts fluctuate frequently, for example adding or removing users from a workspace, similar to the billing behavior of [Loom](https://support.loom.com/hc/en-us/articles/7310782877469-Loom-s-Billing-Policy).

The behavior follows standard [upgrade](#subscription-upgrades) and [downgrade](#subscription-downgrades) logic, **except** when unit quantities increase:

| Behavior in subscriptions with a **monthly** billing cycle                                               | Behavior in subscriptions with an **annual** billing cycle                           |
| -------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------ |
| The customer is charged the prorated amount for the additional unit **at the end of the billing cycle**. | The customer is **immediately charged** the prorated amount for the additional unit. |