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How Discounts and Credits Work

Learn how Cloudways discounts and credits are calculated, applied to invoices, and stacked together, plus what happens when a promo period ends.

Written by Syed Abuzar Mehdi

This article explains how promotional discounts work, how they're calculated, how they interact with account credits, and what to expect once a promotion ends.


How Discounts and Credits Work

Cloudways bills post-paid, so discounts always apply on your next invoice - never retroactively.

Discounted amount = Invoice total − (Invoice total × Discount %)

Example: $11/month plan, 10% off → $11.00 − $1.10 = $9.90/month

If a promo runs multiple months (e.g., "5% for 4 months"), the same % is deducted on each of those invoices, then billing returns to the full rate.

Discounts + Credits

Discount is applied first, then credit covers what's left:

$20.00 invoice − 10% discount = $18.00

$18.00 − $5.00 credit = $13.00 due

Visibility on Invoices

  1. The discount will appear on your upcoming invoices and may not be immediately visible during server creation or signup.

  2. For example, a 10% discount reduces the invoice by 10% of the total amount. If you have account credits, those will be applied to the remaining balance after the discount. Additionally, Cloudways provides a real-time billing section within its platform, allowing users to view their current usage and projected charges. This feature helps verify how discounts and other factors will affect upcoming invoices.

How to Apply

  1. Enter the promo code at signup.

  2. Create your server normally - no extra steps.

  3. Discount reflects automatically on your first/next invoice.

Note:

Server creation screen may still show the full price - this is expected; the discount only shows at invoicing.

Duration & After Expiry

Discounts last a fixed number of months (set by the promo). Once that period ends, billing reverts to the standard plan rate automatically.

Use the Credits & Discounts section in your account to see current usage, applied discounts, and projected charges before the invoice is generated.

Limitations

  • No retroactive discounts on past/current invoices - clear any due invoice first.

  • Applied to the total invoice, not individual line items.

  • May not be visible until the invoice is generated.


That's it! We hope this article was helpful.

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