Prorated billing explained

mikewho · ‎12-17-2008

I know prorated billing used to confuse me especially the first bill so I'll try to give an example that may make it easier to understand. Let's say you start new service where the bill cycle ends in 7 days. To estimate your first bill take the plan you are on ( lets use 39.99) rounded to 40 to make it easier. First take the price plan (40) each month and divide by 30 days. This gives you the minute cost per day of 1.33 each day. Then multiply this times the number of days in the cylce (our example is 7 days). 1.33 times 7 = $9.31

Then you have to add in the entire next month airtime of $40 since you basically pay a month in advance. So a first bill with just the $40 plan after a week when the bill cuts would be aprox 40+9.31+36 application fee if applicable. Total would be 85.31 plus taxes.

Text and data would be extra but hopefully this helps to explain why prorated bills are bigger than normal.

If my numbers are off feel free to correct.

Razr8 · ‎06-26-2011

That's very interesting Mike, how'd you come up with that?

imstef · ‎08-30-2011

This is exactly how it is figured, thanks for the post!

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jamileh · ‎06-20-2011

Great post!

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spd2demun · ‎07-28-2007

We could use your help on the Uverse side!

mikewho wrote:
I know prorated billing used to confuse me especially the first bill so I'll try to give an example that may make it easier to understand. Let's say you start new service where the bill cycle ends in 7 days. To estimate your first bill take the plan you are on ( lets use 39.99) rounded to 40 to make it easier. First take the price plan (40) each month and divide by 30 days. This gives you the minute cost per day of 1.33 each day. Then multiply this times the number of days in the cylce (our example is 7 days). 1.33 times 7 = $9.31

Then you have to add in the entire next month airtime of $40 since you basically pay a month in advance. So a first bill with just the $40 plan after a week when the bill cuts would be aprox 40+9.31+36 application fee if applicable. Total would be 85.31 plus taxes.

Text and data would be extra but hopefully this helps to explain why prorated bills are bigger than normal.

If my numbers are off feel free to correct.

mikewho · ‎12-17-2008

I'll swing by the uverse board. Maybe I'll write a post about how to calculate the first uverse bill since that prob confuses many customers too.

spd2demun · ‎07-28-2007

Thanks, sometimes we just can't get through to them. I have a particular post in mind, but it's now locked. (ck. your PMs for reading; can't cross-post here)

Back on-topic.

umcpgrad · ‎11-13-2011

good post op

PEllicott · ‎04-27-2009

If you leave ATT service before your billing cycle is over, how do you figure out what you owe? If I pay a month in advance, do I owe anything or do they owe me?

kdfederer · ‎07-20-2008

If you read the terms of service, AT&T will not prorate your last month's bill.
If you pay in advance and you leave before your cycle is over, you will owe nothing except any overages.