Annual/Fixed-Term Plan

Applies to Google Workspace and Cloud Identity Premium.

""When you select the Annual/Fixed-Term Plan for your Google service, you commit to purchasing the service for a full year or multiple years. You’re billed monthly for a portion of the commitment. Google sometimes offers country-based discount pricing for Google Workspace.

The Annual/Fixed-Term Plan is recommended for organizations with a constant or growing workforce.

Note: To choose a multi-year plan, contact a Google Sales representative.

User licenses

When you purchase an Annual/Fixed-Term Plan, you commit to the number of licenses you need at that time. You can then add and remove user accounts as you wish, as long as you don’t exceed your number of purchased licenses. If you need more accounts than that, you can purchase more licenses. However, you can’t remove licenses and lower your monthly payments until it’s time to renew your annual/fixed-term contract.

You can’t transfer licenses between Google service accounts—for example, from one Google Workspace account to another.

How payments are calculated

You’re billed monthly for a portion of your annual commitment. Billing takes place 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

Note: Google uses Pacific Time to calculate the start date of your Annual/Fixed-Term Plan, regardless of your time zone.

User licenses 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 4th month of your commitment, your bills (based on standard pricing) would look like this:

Months 1–3: Sign up with 7 licenses   Cost per month
7 licenses = (7 x $72 USD per license per year)/12 months = $42 USD
Month 4: Purchase 3 licenses on 6th day of month   Cost per month
7 licenses = (7 x $72 USD per license per year)/12 months = $42 USD
3 licenses prorated for 24 days = (3 x $72 USD per license per year)/12 months prorated for 24 days = $14.40 USD
Total     = $56.40 USD
Months 5–12       Cost per month
10 licenses = (10 x $72 USD per license per year)/12 months = $60 USD

Tip: You can pay for your full commitment in advance instead of making monthly payments by adding credit to your account. Learn how to make a manual payment.

Switching your subscription

Switching to a different subscription depends on your type of Annual/Fixed-Term Plan:

  • Annual Plan (Monthly Payment)—You can downgrade your subscription only after you Switch from Annual to Flexible Plan. You can upgrade at any time.
  • Annual Plan (Yearly Payment)—You can't upgrade or downgrade your subscription in the Admin console.

Canceling your subscription

To cancel your subscription without penalty, you must wait until the end of your Annual/Fixed-Term contract.

If you cancel your subscription before the contract is over, you’re still responsible for the full value of the commitment. We’ll charge your account an amount equal to the remaining balance.
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