What is Billing Cycle?
Definition
The recurring time period between billing dates for a subscription service, such as monthly, quarterly, or yearly.
Understanding Billing Cycle
A billing cycle defines how frequently you are charged for a subscription. The most common billing cycles are monthly and yearly (annual), though some services offer weekly or quarterly options. Yearly billing often comes with a discount of 15-20% compared to monthly pricing.
Understanding your billing cycles is essential for budgeting — knowing when payments are due helps you plan finances and avoid overdraft fees. Tracking billing cycles across all subscriptions helps identify the best time to consolidate or cancel services.
Related Terms
Recurring Billing
An automatic payment system that charges a customer at predetermined intervals for ongoing access to a product or service.
Annual Subscription
A subscription plan billed once per year, typically offering a discount compared to the equivalent monthly pricing.
Monthly Subscription
A subscription plan that charges the user once per month, offering flexibility to cancel at any time.
Payment Date
The specific day within each billing cycle when a subscription payment is processed and charged to the subscriber's payment method.