Annual/Fixed-Term Plan

Applies to Google Workspace and Cloud Identity Premium.

The Annual/Fixed-Term Plan works well for organizations with a constant or growing workforce. With the Annual/Fixed-Term Plan, you commit to purchasing the Google Workspace or Cloud Identity Premium service for a full year 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. Your billing options are presented when you sign up and depend on your region, your subscription type, and the way you purchased your subscription.

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 licenses than that, 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 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 $72 USD per license per year)/12 months = $42 USD
Month 4: Purchase 3 licenses on sixth 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

Multi-year plans

For details about multi-year plans, contact a Google Sales representative.

Switching your subscription

You can upgrade your subscription at any time. If you’re on the Annual/Fixed-Term Plan with annual payments, you must switch to 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.

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.

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