What is Downgrade?
Definition
Switching from a higher-priced subscription plan to a lower-priced one, typically with fewer features or reduced limits.
Understanding Downgrade
Downgrading is a cost-saving strategy where you move to a less expensive plan that still meets your needs. For example, switching from Spotify Family to Spotify Individual, or from a Pro plan to a Free tier. Most services apply downgrades at the end of the current billing cycle.
Some offer prorated credits, while others require you to use the remaining time on your current plan first. Before downgrading, check what features or data you might lose — some services delete data that exceeds the lower plan's limits.
Related Terms
Tiered Pricing
A pricing strategy where a service offers multiple plan levels with different feature sets and price points to serve different customer segments.
Proration
The calculation of a proportional charge or credit when changing subscription plans mid-billing cycle.
Cancellation
The act of ending a subscription, which stops future billing and eventually terminates access to the service.
Subscription Savings
The money saved by optimizing subscriptions through cancelling unused services, downgrading plans, switching to annual billing, or using bundles.