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!!! 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.
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Deactivating 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.
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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.