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Expenses and Costs:Downgrade refund rules

Last Updated:Jun 02, 2026

When you downgrade a subscription instance, a refund is calculated based on specific rules. No refund is issued if the calculated amount is zero or less.

Refund rules

  • You can downgrade the configuration of a subscription instance in real time using an authorized account.

  • When you downgrade, the original order is canceled and a new order is generated. The usage duration and consumed resource fee from the new order are used to calculate the refund.

  • If you purchased during a promotion, the refundable amount may be zero or negative. No refund is issued in this case.

Important

Usage duration is the actual consumption period measured in days. For example, if you purchase a one-year instance and request a refund after 10 days, the usage duration is 10 days. Partial days are rounded up to one day.

Refund calculation

Refundable amount for downgrade = Online refundable amount × Price difference ratio between new and original orders. For multiple orders, each refund is calculated separately then summed.

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

    • The paid amount is the cash paid, excluding coupon and voucher offsets.

    • The fee for consumed resources is calculated as follows.

      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 × Applicable discount for the usage duration

  • Price difference ratio = (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 as follows.

      Scenario

      Calculation rule

      No upgrade before downgrade

      Price difference = Daily unit price of the original order

      Upgrade before downgrade

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

    • Daily unit price = Original price of the order / Actual subscription duration of the order.

    Note

    If the price difference ratio exceeds 1, the system uses 1.

Parameters used in calculations

Parameter

Description

Usage duration

Usage duration = Downgrade time - Order start time, measured in days. Partial days are rounded up. Examples:

  • You purchase a one-year ECS instance at 12:00 on January 1, 2023. You initiate a downgrade at 14:00 on January 10, 2023. Usage duration = 10 days.

  • You purchase a one-year ECS instance at 12:00 on January 1, 2023. You initiate a downgrade at 14:00 the same day. Usage duration = 1 day.

Discount for the usage duration

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

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 user purchased an instance with a 4-core CPU and 8 GB of memory for one year (365 days). The list price is USD 100 per month and USD 1,200 per year. The user received a 15% discount for a 1-year subscription and paid USD 1,020. This is Order A. 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 configuration - Daily unit price of the new configuration) / Price difference of the daily unit price of the original configuration = [(USD 1,200/365) - (USD 50/30)] / (USD 1,200/365) = 0.50694444

In the calculation,

Daily unit price of the original configuration = (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 user purchased an instance with a 4-core CPU 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 user received a 50% discount for a 1-year subscription and paid USD 600. This is Order A. 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 configuration - Daily unit price of the new configuration after downgrade) / Price difference of the daily unit price of the original order configuration = [(200 USD/30) - (100 USD/30)] / [(200 USD/30) - (1200 USD/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

Daily unit price difference for the configuration = Daily unit price of the new configuration - Daily unit price of the original configuration = Daily unit price of the new configuration - (Monthly price × Total purchase months of the order) / Total purchase days of the order = (200 USD / 30) - (1200 USD / 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 purchases a 4-core CPU and 8 GB memory configuration for 1 year (365 days). The official list price is 100 USD/month or 1200 USD/year. The customer receives a 15% discount for a 1-year purchase (no discount is available for subscriptions of less than one year), making the actual payment 1020 USD—this is referred to as Order A.

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 configuration - Daily unit price of the new configuration after the downgrade) / Daily unit price of the original order configuration. Price difference ratio = [(1200 USD/365) - (50 USD/30)] / (1200 USD/365) = 0.50694444

In the calculation,

Daily unit price of the original order configuration = (Monthly price × Total purchase months) / Total purchase days = 1200 USD / 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 configuration - Daily unit price of the new configuration after the downgrade) / Daily unit price of the original order configuration Price difference = [(200 USD/30) - (50 USD/30)] / [(200 USD/30) - (1200 USD/365)] > 1, calculated as 1

In the calculation,

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

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

Daily unit price difference for the original order's configuration = Daily unit price of the original order's configuration - Its daily unit price before the upgrade = (200 USD/30) - (1200 USD/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 purchases a configuration with a 4-core CPU and 8 GB of memory for 1 year (365 days). The list price is 100 USD/month or 1200 USD/year. The customer receives a 15% discount for a 1-year purchase (no discount is available for purchases of less than one year), making the final payment 1020 USD. --This is Order A.

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

=(Original order daily unit price - New downgraded configuration daily unit price) / Original order daily unit price difference = [(200 USD / 30) - (150 USD / 30)] / [(200 USD / 30) - (1200 USD / 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

Daily unit price difference for the original order's configuration = Daily unit price of the original order's configuration - Daily unit price of the original order's configuration before the upgrade = (USD 200/30) - (USD 1200/365)

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