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Expenses and Costs:Refund rules for downgrades

Last Updated:Feb 28, 2026

When you downgrade the configuration of a subscription instance, the system calculates a partial refund. No refund is issued if the calculated refundable amount is less than 0.

How refunds work

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. A configuration downgrade cancels the original order and generates a new order with the new configuration. The refund amount depends on the following factors:

  • Paid amount: The amount you actually paid, excluding amounts offset by coupons or vouchers.

  • Fee for consumed resources: The cost of resources you already used, calculated based on the resource type and usage duration.

  • Price difference ratio: A ratio that accounts for the price difference between the original and new configurations.

Important

If you purchased a resource during a promotional event, the refundable amount may be equal to or smaller than zero. No refund is issued in this case.

Refund formula

Refundable amount = Online refundable amount x Price difference ratio

If the downgrade involves multiple orders (for example, an original purchase order and a subsequent upgrade order), the total refundable amount is the sum of the refund calculated for each order.

Online refundable amount

Online refundable amount = Paid amount - Fee for consumed resources

The fee for consumed resources is calculated differently depending on the resource type:

Resource type

Usage duration

Fee formula

Subscription ECS instance

Less than 30 days

Daily unit price x Usage duration x Discount for the usage duration x 1.5

Subscription ECS instance

30 days or more

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

Other resources

Any

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

Price difference ratio

Price difference ratio = (Daily unit price of original order - Daily unit price of new order) / Price difference between daily unit prices of original orders

The denominator (price difference between daily unit prices of original orders) depends on whether you upgraded the instance before the downgrade:

Scenario

Price difference (denominator)

No prior upgrade

Daily unit price of the original order

Prior upgrade

Daily unit price of the original order - Daily unit price of the order before the upgrade

Note

If the calculated price difference ratio exceeds 1, the system caps it at 1.

Daily unit price

Order type

Daily unit price formula

Purchase, renewal, or downgrade

Original price of the order / Actual subscription duration of the order

Upgrade

(Original price of the order / Actual subscription duration of the order) x Price difference ratio before and after upgrade

For upgrade orders, the price difference ratio before and after upgrade is:

(Daily unit price after upgrade - Daily unit price before upgrade) / Daily unit price after upgrade

Note

Daily unit prices in the upgrade formula do not include discounts.

Usage duration

Usage duration = Downgrade time - Order start time

The usage duration is accurate to days. A duration shorter than one day is rounded up to one day.

Examples:

  • You purchased an ECS instance for one year on January 1, 2023 at 12:00 and initiated a downgrade on January 10, 2023 at 14:00. Usage duration = 10 days.

  • You purchased an ECS instance for one year on January 1, 2023 at 12:00 and initiated a downgrade the same day at 14:00. Usage duration = 1 day.

Discount for the usage duration

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

Calculation examples

The following examples use an ECS instance to demonstrate refund calculations for different scenarios. No discount is provided for subscriptions shorter than one year in these examples.

Example 1: Downgrade without a prior upgrade

Setup:

Item

Value

Instance

4 vCPUs, 8 GB memory

Subscription

1 year (365 days)

List price

USD 100/month (USD 1,200/year)

Discount

15% off for 1-year subscription

Paid amount

USD 1,020

Downgrade timing

After 6 months

New configuration

2 vCPUs, 4 GB memory (USD 50/month)

Order A (purchase order):

Step

Calculation

Result

Fee for consumed resources

USD 100/month x 6 months x 1.0

USD 600

Online refundable amount

USD 1,020 - USD 600

USD 420

Daily unit price (original)

USD 1,200 / 365

USD 3.2877

Daily unit price (new)

USD 50 / 30

USD 1.6667

Price difference ratio

(3.2877 - 1.6667) / 3.2877

0.50694444

Refundable amount

USD 420 x 0.50694444

USD 212.92

Example 2: Downgrade to original configuration after an upgrade

Setup:

Item

Value

Instance

4 vCPUs, 8 GB memory

Subscription

1 year (365 days)

List price

USD 100/month (USD 1,200/year)

Discount

50% off for 1-year subscription

Paid amount

USD 600

Upgrade (after 6 months)

8 vCPUs, 16 GB memory (USD 200/month), paid USD 600 (Order B)

Downgrade (3 months later)

Back to 4 vCPUs, 8 GB memory (USD 100/month)

Order A (purchase order): No refund.

Order B (upgrade order):

Step

Calculation

Result

Fee for consumed resources

(USD 600 / 6 months) x 3 months

USD 300

Online refundable amount

USD 600 - USD 300

USD 300

Daily unit price (original)

USD 200 / 30

USD 6.6667

Daily unit price (new)

USD 100 / 30

USD 3.3333

Daily unit price (pre-upgrade)

USD 1,200 / 365

USD 3.2877

Price difference (denominator)

6.6667 - 3.2877

USD 3.3790

Price difference ratio

(6.6667 - 3.3333) / 3.3790

0.98648649

Refundable amount

USD 300 x 0.98648649

USD 295.95

Total refundable amount = USD 0 + USD 295.95 = USD 295.95

Example 3: Downgrade to a lower configuration after an upgrade

Setup:

Item

Value

Instance

4 vCPUs, 8 GB memory

Subscription

1 year (365 days)

List price

USD 100/month (USD 1,200/year)

Discount

15% off for 1-year subscription

Paid amount

USD 1,020

Upgrade (after 6 months)

8 vCPUs, 16 GB memory (USD 200/month), paid USD 600 (Order B)

Downgrade (3 months later)

2 vCPUs, 4 GB memory (USD 50/month)

Order A (purchase order):

Step

Calculation

Result

Fee for consumed resources

USD 100/month x 9 months x 1.0

USD 900

Online refundable amount

USD 1,020 - USD 900

USD 120

Price difference ratio

[(USD 1,200/365) - (USD 50/30)] / (USD 1,200/365)

0.50694444

Refundable amount

USD 120 x 0.50694444

USD 60.83

Order B (upgrade order):

Step

Calculation

Result

Fee for consumed resources

(USD 600 / 6 months) x 3 months

USD 300

Online refundable amount

USD 600 - USD 300

USD 300

Price difference ratio

[(USD 200/30) - (USD 50/30)] / [(USD 200/30) - (USD 1,200/365)]

> 1 (capped at 1)

Refundable amount

USD 300 x 1

USD 300

Total refundable amount = USD 60.83 + USD 300 = USD 360.83

Example 4: Partial downgrade after an upgrade

Setup:

Item

Value

Instance

4 vCPUs, 8 GB memory

Subscription

1 year (365 days)

List price

USD 100/month (USD 1,200/year)

Discount

15% off for 1-year subscription

Paid amount

USD 1,020

Upgrade (after 6 months)

8 vCPUs, 16 GB memory (USD 200/month), paid USD 600 (Order B)

Downgrade (3 months later)

6 vCPUs, 12 GB memory (USD 150/month)

Order A (purchase order): No refund.

Order B (upgrade order):

Step

Calculation

Result

Fee for consumed resources

(USD 600 / 6 months) x 3 months

USD 300

Online refundable amount

USD 600 - USD 300

USD 300

Daily unit price (original)

USD 200 / 30

USD 6.6667

Daily unit price (new)

USD 150 / 30

USD 5.0000

Price difference (denominator)

(USD 200/30) - (USD 1,200/365)

USD 3.3790

Price difference ratio

(6.6667 - 5.0000) / 3.3790

0.49324324

Refundable amount

USD 300 x 0.49324324

USD 147.97

Total refundable amount = USD 0 + USD 147.97 = USD 147.97