All Products
Search
Document Center

Expenses and Costs:Refund rules for configuration downgrades

Last Updated:Apr 03, 2025

When you downgrade the configuration of a subscription instance, the system refunds you a portion of the fees based on certain calculation rules. However, if the calculated refundable amount is less than 0, no refund is issued.

Refund rules

  • If the configuration of your subscription instance exceeds your business requirements, you can use an authorized account to downgrade the instance configuration in real time.

  • When you downgrade the configuration of an instance, the original order is canceled and a new order with the new configuration is generated. The usage duration and fee for consumed resources in the new order are used to calculate the refund.

  • If you purchase a resource during a promotional event and downgrade its configuration, the refundable amount may be equal to or smaller than zero. In this case, no refund is issued. Proceed with caution.

Important

The usage duration refers to the actual consumption duration of the resource that you purchased in an order. For example, if you purchase an instance for one year and request a refund after you use the instance for 10 days, the usage duration is 10 days. The usage duration is accurate to days, and a usage duration shorter than one day is rounded up to one day.

Refund calculation

Formula: Refundable amount for the downgrade = Online refundable amount × Price difference ratio between new and original orders (If multiple orders are generated, the sum of the refund for each order is calculated.)

  • Formula: Online refundable amount = Paid amount - Fee for consumed resources

    • The paid amount is the money that you paid and excludes the amount that is offset by coupons or vouchers.

    • The fee for consumed resources is calculated based on the following rules.

      Type

      Calculation rule

      Subscription Elastic Compute Service (ECS) instance

      The usage duration is less than 30 days.

      Daily unit price × Usage duration × Discount for the usage duration) × 1.5

      The usage duration is equal to or greater than 30 days.

      Daily unit price × Usage duration × Discount for the usage duration

      Other resources

      Daily unit price × Usage duration × Discount for the usage duration

  • Formula: Price difference ratio between new and original orders = (Daily unit price of the original order - Daily unit price of the new order)/Price difference between daily unit prices of original orders

    • The price difference between daily unit prices of original orders is calculated based on the following rules.

      Scenario

      Calculation rule

      No configuration upgrade is performed before the configuration downgrade.

      Price difference = Daily unit price of the original order

      A configuration upgrade is performed before the configuration downgrade.

      Price difference = Daily unit price of the original order - Daily unit price of the order before the configuration upgrade.

    • The daily unit price is calculated by using the formula: Daily unit price = Original price of the order/Actual subscription duration of the order.

    Note

    If the price difference ratio between new and original orders is greater than 1, the system automatically uses 1 as the ratio.

Parameters used in calculations

Parameter

Description

Usage duration

The usage duration refers to the actual consumption duration of the resources that you purchased in an order, which is calculated by using the following formula: Usage duration = Downgrade time - Order start time. The usage duration is accurate to days, and a usage duration shorter than one day is rounded up to one day. Examples:

  • At 12:00 on January 1, 2023, you purchased an ECS instance for one year. At 14:00 on January 10, 2023, you initiated a request to downgrade the configuration of the ECS instance. The usage duration is calculated as 10 days.

  • At 12:00 on January 1, 2023, you purchased an ECS instance for one year. At 14:00 of the same day, you initiated a request to downgrade the configuration of the ECS instance. The usage duration is calculated as one day.

Discount for the usage duration

The system calculates the discount for the usage duration based on resource configuration and the actual usage duration at the time of refund.

Daily unit price

  • For purchase, renewal, or downgrade orders, the following formula is used: Daily unit price = Original price of the order/Actual subscription duration of the order.

  • For upgrade orders, the following formula is used: Daily unit price = Daily unit price based on the price difference ratio before and after upgrade = (Original price of the order/Actual subscription duration of the order) × Price difference ratio before and after upgrade. Price difference ratio before and after upgrade = (Daily unit price after upgrade - Daily unit price before upgrade)/Daily unit price after upgrade. Daily unit prices in this formula do not include discounts.

Examples

Examples

Example

Order A (purchase order)

Order B (upgrade order)

Total refundable amount for the downgrade

Online refundable amount

Price difference ratio between new and original orders

Refundable amount for the downgrade

Online refundable amount

Price difference ratio between new and original orders

Refundable amount for the downgrade

Example 1:

A customer purchased an instance with 4 vCPUs and 8 GB of memory for a subscription duration of 1 year (365 days). The list price is USD 100 per month and USD 1,200 per year. The customer enjoyed a discount of 15% for 1-year subscription and paid USD 1,020. Order A is generated. No discount is provided for subscriptions shorter than 1 year.

Half a year later, the customer downgraded the configuration to 2 vCPUs and 4 GB of memory. The list price for the new configuration is USD 50 per month.

image.png

Online refundable amount

= Paid amount - Fee for consumed resources = USD 1,020 - USD 600 = USD 420

In the calculation,

  • Paid amount = USD 1,020

  • Fee for consumed resources = Price of subscription resources per day × Usage duration × Discount for the usage duration = USD 100 per month × 6 months × 1.0 = USD 600

Price difference ratio between new and original orders

= (Daily unit price of the original order - Daily unit price of the new order)/Price difference between daily unit prices of original orders = [(USD 1,200/365) - (USD 50/30)]/(USD 1,200/365) = 0.50694444

In the calculation,

Daily unit price of the original order = (Monthly price × Total months of the order)/Total days of the order = USD 1,200/365

Daily unit price of the new order = Monthly price/30 = USD 50/30

Price difference between daily unit prices of original orders = Daily unit price of the original order = USD 1,200/365

Refundable amount for the downgrade

= Online refundable amount × Price difference ratio between new and original orders

= USD 420 × 0.50694444

≈ USD 212.92

None

Total refundable amount for the downgrade

= Refundable amount of Order A + Refundable amount of Order B

= USD 212.92 + USD 0

= USD 212.92

Example 2:

A customer purchased an instance with 4 vCPUs and 8 GB of memory for a subscription duration of 1 year (365 days). The list price is USD 100 per month and USD 1,200 per year. The customer enjoyed a discount of 50% for 1-year subscription and paid USD 600. Order A is generated. No discount is provided for subscriptions shorter than 1 year.

Half a year later, the customer upgraded the configuration to 8 vCPUs and 16 GB of memory. The list price for the new configuration is USD 200 per month. In this case, the customer must pay for the price difference of USD 600. Order B is generated.

Three months later, the customer downgraded the configuration to 4 vCPUs and 8 GB of memory. The list price is USD 100 per month.

image.png

No refund is issued for Order A.

Online refundable amount

= Paid amount - Fee for consumed resources = USD 600 - USD 300 = USD 300

In the calculation,

  • Paid amount = USD 600

  • Fee for consumed resources = (USD 600/6 months) × 3 months = USD 300

Price difference ratio between new and original orders

= (Daily unit price of the original order - Daily unit price of the new order)/Price difference between daily unit prices of original orders = [(USD 200/30) - (USD 100/30)]/[(USD 200/30) - (USD 1,200/365)] = 0.98648649

In the calculation,

Daily unit price of the original order = Monthly price/30 = USD 200/30

Daily unit price of the new order = USD 100/30

Price difference between daily unit prices of original orders = Daily unit price of the original order - Daily unit price of the order before the configuration upgrade = Daily unit price of the original order - (Monthly price × Total months of the order)/Total days of the order = (USD 200/30) - (USD 1,200/365)

Refundable amount for the downgrade

= Online refundable amount × Price difference ratio between new and original orders

= USD 300 × 0.98648649

≈ USD 295.95

Total refundable amount for the downgrade

= Refundable amount of Order A + Refundable amount of Order B

= USD 0 + USD 295.95

= USD 295.95

Example 3:

A customer purchased an instance with 4 vCPUs and 8 GB of memory for a subscription duration of 1 year (365 days). The list price is USD 100 per month and USD 1,200 per year. The customer enjoyed a discount of 15% for 1-year subscription and paid USD 1,020. Order A is generated. No discount is provided for subscriptions shorter than 1 year.

Half a year later, the customer upgraded the configuration to 8 vCPUs and 16 GB of memory. The list price for the new configuration is USD 200 per month. In this case, the customer must pay for the price difference of USD 600. Order B is generated.

Three months later, the customer downgraded the configuration to 2 vCPUs and 4 GB of memory. The list price is USD 50 per month.

image.png

Online refundable amount

= Paid amount - Fee for consumed resources

=1,020 - 100 × 9 = 120

In the calculation,

  • Paid amount = USD 1,020

  • Fee for consumed resources = Price of subscription resources per day × Usage duration × Discount for the usage duration = USD 100 per month × 9 months × 1.0 = USD 900

Price difference ratio between new and original orders

= (Daily unit price of the original order - Daily unit price of the new order)/Price difference between daily unit prices of original orders = [(USD 1,200/365) - (USD 50/30)]/(USD 1,200/365) = 0.50694444

In the calculation,

Daily unit price of the original order = (Monthly price × Total months of the order)/Total days of the order = USD 1,200/365

Daily unit price of the new order = Monthly price/30 = USD 50/30

Price difference between daily unit prices of original orders = Daily unit price of the original order - 0 = USD 1,200/365

Refundable amount for the downgrade

= Online refundable amount × Price difference ratio between new and original orders

=120 USDx0.50694444

=60.83 USD

Online refundable amount

= Paid amount - Fee for consumed resources

=600 USD-300 USD=300 USD

In the calculation,

  • Paid amount = USD 600

  • Fee for consumed resources = (USD 600/6 months) × 3 months = USD 300

Price difference ratio between new and original orders

= (Daily unit price of the original order - Daily unit price of the new order)/Price difference between daily unit prices of original orders = [(USD 200/30) - (USD 50/30)]/[(USD 200/30) - (USD 1,200/365)] > 1 (The system automatically uses 1 as the ratio.)

In the calculation,

Daily unit price of the original order = USD 200/30

Daily unit price of the new order = USD 50/30

Price difference between daily unit prices of original orders = Daily unit price of the original order - Daily unit price of the order before the configuration upgrade = (USD 200/30) - (USD 1,200/365)

Refundable amount for the downgrade

= Online refundable amount × Price difference ratio between new and original orders = USD 300 × 1= USD 300

Total refundable amount for the downgrade

= Refundable amount of Order A + Refundable amount of Order B

= USD 60.83 + USD 300

= USD 360.83

Example 4:

A customer purchased an instance with 4 vCPUs and 8 GB of memory for a subscription duration of 1 year (365 days). The list price is USD 100 per month and USD 1,200 per year. The customer enjoyed a discount of 15% for 1-year subscription and paid USD 1,020. Order A is generated. No discount is provided for subscriptions shorter than 1 year.

Half a year later, the customer upgraded the configuration to 8 vCPUs and 16 GB of memory. The list price for the new configuration is USD 200 per month. In this case, the customer must pay for the price difference of USD 600. Order B is generated.

Three months later, the customer downgraded the configuration to 6 vCPUs and 12 GB of memory. The list price is USD 150 per month.

image.png

No refund is issued for Order A.

Online refundable amount

= Paid amount - Fee for consumed resources = USD 600 - USD 300 = USD 300

In the calculation,

  • Paid amount = USD 600

  • Fee for consumed resources = (USD 600/6 months) × 3 months = USD 300

Price difference ratio between new and original orders

= (Daily unit price of the original order - Daily unit price of the new order)/Price difference between daily unit prices of original orders = [(USD 200/30) - (USD 150/30)]/[(USD 200/30) - (USD 1,200/365)] = 0.49324324

In the calculation,

Daily unit price of the original order = USD 200/30

Daily unit price of the new order = USD 150/30

Price difference between daily unit prices of original orders = Daily unit price of the original order - Daily unit price of the order before the configuration upgrade = (USD 200/30) - (USD 1,200/365)

Refundable amount for the downgrade

= Online refundable amount × Price difference ratio between new and original orders

= USD 300 × 0.49324324

≈ USD 147.97

Total refundable amount for the downgrade

= Refundable amount of Order A + Refundable amount of Order B

= USD 0 + USD 147.97

= USD 147.97