What Are Amortized Costs?

Amortized costs refer to the effective costs after the original costs are amortized on a daily basis. They reflect the actual daily costs in a given billing cycle. Amortized costs are calculated once every day, and it takes about 24 to 48 hours for the data to be displayed. Before the billing date, the amortized cost is an estimated amount.

The daily amortized cost of a yearly/monthly subscription is calculated using the following formula:

Daily amortized cost = Order amount/Number of days over the order effective term (number of days from the effective time to the expiration time)

Example: If you purchased a one-month subscription at $31.62 USD on August 1, 2024, the daily amortized cost over the subscription term is $1.02 USD (31.62/31).

For details about how to calculate amortized costs, see Cost Amortization Rules.

For details about the differences between bill amounts and amortized amounts, see What Are the Differences Between Bill Amount and Amortized Amount?