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WhatItCosts

Guide · 5 min read

Seats, usage and the bill that follows

A software subscription and a hosting plan both look monthly. One scales by seat, the other by usage.

Updated

Seats are not the same as usage

A software plan usually charges per user or per seat. A hosting plan charges for compute, storage, bandwidth or requests. Ask which unit the bill scales with before comparing two monthly prices.

Monthly and annual are different contracts

An annual plan often discounts the monthly rate but commits for a year. Check the refund policy, the renewal date and what happens if you add a seat mid-term.

Taxes and currency

A price shown in USD may be billed in local currency with tax added. Check whether the quote includes VAT or sales tax and which exchange rate the provider uses.

Egress, storage and add-ons

Hosting bills often include a platform fee plus usage. Bandwidth, storage, build minutes and extra environments can dominate the platform fee. Model a normal month, not the free tier.

Cancellation and renewal

Check how to cancel, whether the plan auto-renews and whether a downgrade takes effect immediately or at the end of the term. A low monthly price with a long notice period is not flexible.