> ## Documentation Index
> Fetch the complete documentation index at: https://carat.im/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# I'm confused about monthly vs annual pricing

Carat offers two payment options: **monthly billing** and **annual billing**. Annual billing applies a discount of 20-34% depending on your plan.

### Plan pricing

| Plan        | Monthly billing | Annual billing (per month) | Annual billing (total) | Discount |
| :---------- | :-------------- | :------------------------- | :--------------------- | :------- |
| **Plus**    | \$20/month      | \$16/month                 | \$192/year             | 20%      |
| **Premium** | \$40/month      | \$32/month                 | \$384/year             | 20%      |
| **Max**     | \$99/month      | \$74/month                 | \$888/year             | 25%      |
| **Pro**     | \$200/month     | \$132/month                | \$1,584/year           | 34%      |

<Warning title="Common misconception">
  The per-month amount shown on the annual billing screen is the annual total divided into 12 monthly equivalents. It is not the monthly billing price.
</Warning>

### Differences between billing options

* **Monthly billing**: Charged every month, can be canceled anytime.
* **Annual billing**: Pay for one year upfront with a per-plan discount (20-34%) applied.

<Tip>
  If you plan to use Carat long-term, annual billing is more economical.
</Tip>

For detailed plan comparisons, please refer to [Pricing Plans](/en/pricing/plans) or the [Upgrade Page](https://carat.im/upgrade).