!!! tip ""

    Automatic billing is recommended unless you have a specific reason to
    choose manual billing.

With automatic billing, you automatically purchase a Zulip license for each user
in your organization at the start of each billing period (month or year), and
whenever you need additional licenses.

- [Deactivating a user](/help/deactivate-or-reactivate-a-user) frees up their
  license for reuse. No refunds are given for unused licenses you have
  purchased. For example, if you start a billing period with 10 users,
  deactivate 5 users, and then add 2 new users, you will be billed for 10
  licenses for the entire billing period.

- If you have no free licenses when you **add a user**, you will be automatically
  billed for an additional license. You will be charged only for the remaining
  part of the billing period. For example, if you are on a $8/user/month monthly
  plan, you will be billed $4 for a user added half way through the month. Each
  month, you will see a single charge for all licenses added that month.