Applies to Google Workspace and Cloud Identity Premium
The Annual/Fixed-Term Plan works well for organizations with a constant or growing workforce. With this plan, you commit to purchasing the Google Workspace or Cloud Identity Premium service for one or multiple years.
In most cases, you make an annual upfront payment for your commitment. In rare cases, you can choose to pay monthly for a portion of the commitment. When you sign up, you can see your billing options. The options depend on your region, your subscription type, and how you purchased your subscription.
User licenses
When you purchase an Annual/Fixed-Term Plan, you commit to the number of licenses you need. You can add and remove user accounts at any time as long as you don’t exceed your number of purchased licenses. If you need more licenses, you can purchase more. However, you can’t remove licenses and lower your subscription price until it’s time to renew your contract.
You can’t transfer licenses between Google service accounts—for example, from one Google Workspace account to another.
How payments are calculated
For an Annual/Fixed-Term Plan with annual payments, you’re charged up front for the year at the end of the first month of your billing cycle.
If you pay monthly, you pay at the beginning of the month. If you sign up later in the month, you make:
- One prorated payment for the first partial month
- Full payments for months 2–11
- One prorated payment for partial month 12
Google uses Pacific Time (PT) to calculate the start date of your Annual/Fixed-Term Plan, regardless of your time zone.
Tip: If you don’t have the option for the Annual/Fixed-Term Plan billed annually, you can pay for your full commitment in advance instead of making monthly payments by adding credit to your account.
What if I add licenses?
User licenses that you purchase after the initial commitment are prorated. For example, if you start with 7 Business Starter licenses and add 3 licenses to your order in the fourth month of your commitment, your monthly payment would look like this:
| Months 1–3: Sign up with 7 licenses | Cost per month | |||
|---|---|---|---|---|
| 7 licenses | = | (7 x $84 USD per license per year)/12 months | = | $49 USD |
| Month 4: Purchase 3 licenses on sixth day of month | Cost per month | |||
| 7 licenses | = | (7 x $84 USD per license per year)/12 months | = | $49 USD |
| 3 licenses prorated for 24 days | = | (3 x $84 USD per license per year)/12 months prorated for 24 days | = | $16.80 USD |
| Total | = | $65.80 USD | ||
| Months 5–12 | Cost per month | |||
| 10 licenses | = | (10 x $84 USD per license per year)/12 months | = | $70 USD |
Multi-year plans
For details about multi-year plans, contact a Google Sales representative.
Switching your subscription
- You can upgrade your subscription during or at the end of your commitment term. If you’re on the Annual/Fixed-Term Plan with annual payments, you must switch to the Annual/Fixed-Term Plan with monthly payments when you upgrade. You receive a prorated credit for any remaining balance from your yearly payment for your current subscription.
- You can downgrade your subscription only after you switch from the Annual/Fixed Term Plan to a Flexible Plan. If you switch plans before your renewal date, you can’t downgrade until your renewal date, when the switch to the Flexible Plan takes effect. For details, go to Switch from Annual/Fixed-Term to Flexible Plan.
Canceling your subscription
To cancel your subscription without penalty, you must wait until the end of your Annual/Fixed-Term contract.
Important: If you cancel your subscription before the contract is over, you’re still responsible for the full value of the commitment. If you haven’t paid the full balance of your commitment contract, we’ll charge your account the remaining balance.
