# Contract length

> A minimum term for the monthly option (3, 6 or 12 months, or another length up to 36), billed month by month. What happens when a subscriber cancels partway through, who can end it early, and how the contract renews.

**Contract length** gives a **monthly** [billing option](/monetizacao/opcoes-de-cobranca) a minimum term: the subscriber commits for 3, 6 or 12 months (or another length, from 1 to 36) and pays **month by month**. Each charge only takes the monthly fee from the card limit, not the value of the whole contract.

## What it's for

It's loyalty: you give a better price in exchange for a commitment.

| Community | No contract | With a contract |
|---|---|---|
| Coworking space | Resident · Monthly R$ 890 | Resident · 12 months R$ 790/month |
| Mentoring | Mentoring · Monthly R$ 297 | Mentoring · Quarter R$ 247/month (3-month contract) |
| Course academy | Student · Monthly R$ 59 | Student · Semester R$ 49/month (6-month contract) |

For people who'd rather pay the whole year at once, there's [annual in installments](/monetizacao/anual-parcelado). The two can live side by side on the same plan.

## How it works

### The contract

- It only applies to a **Monthly** option: *"A contract duration is only available for monthly subscriptions"*.
- The term goes from **1 to 36 months**: *"Contract duration must be a whole number of months between 1 and 36"*.
- The contract's end date is set when the subscription starts: start + N months.
- A subscription created before the option had a contract stays without a contract.

### Canceling partway through the contract

When a subscriber cancels before the end, **the cancellation is scheduled for the end of the contract**, and the monthly charges continue until then. The screen warns before confirming:

> *"Your subscription has a contract until 03/15/2027. The cancellation is scheduled for that date, and monthly charges continue until then."*

And, on confirming: *"Cancellation scheduled for 03/15/2027, the end of your contract. Monthly charges continue until then."*

### Ending it early

The **owner** and **admin** can end the contract right away (for example, in an agreement with the subscriber). The subscriber can't do it alone.

### End of the contract

At the end of the term, the contract **renews on its own** for another period of the same length, using the option's **current** term. Anyone who wants out cancels beforehand; the cancellation then takes effect at the end of the running contract.

### The free trial

The trial doesn't hold the cancellation: anyone who cancels during the trial leaves without being charged.

### What the subscriber sees

- On the pricing page: *"R$ 790/month · 12-month contract"*, and the **Monthly | Annual** toggle compares the option with a contract against the one without, with the discount worked out.
- At payment: *"12-month contract, billed monthly"*.
- On the **Billing** page: *"Contract until 03/15/2027"*.

## When to use a contract

A contract works well when:

- **the value you deliver grows over time**: a 3-month mentoring program, a 6-month course, a one-year coworking residency;
- **your cost per person is fixed**: the coworking desk, the seat in the cohort;
- **the member wants to pay less per month** and is willing to stay.

And it works poorly when the member is still trying things out: for that, offer the **no-contract** option alongside it, or a free trial. The pricing page's **Monthly | Annual** toggle makes the comparison clear.

## How to make the contract clear to subscribers

A contract is a promise on both sides. To avoid surprises:

1. **Put the term in the option's name**: *Resident · 12 months*.
2. **Repeat it in the description**: *"12-month contract, billed monthly. Cancellation takes effect at the end of the contract."*
3. **Show the savings**: the pricing page works them out on its own, against the plan's no-contract option.
4. **Mention the term in the plan's benefits**, if contracts are the house rule.

The payment screen and the **Billing** page show the term at every step; the text above is for the person to decide beforehand.

## Everyday situations

| Situation | What happens |
|---|---|
| The subscriber cancels partway through | Cancellation scheduled for the end of the contract; charges continue |
| The card declines a monthly payment | The subscription becomes past due; the contract keeps counting |
| The subscriber wants out for a good reason | An owner or admin ends it right away |
| The contract reaches its end with no cancellation | It renews for another contract of the same length |
| You changed the option's term | Existing subscribers keep theirs; the renewal uses the new term |
| The person subscribed before the option had a contract | Still no contract |

## Step by step: end a contract early

*Role: owner or admin.*

Ending it right away is a staff action, for agreements with the subscriber. Today it's done through the API: `POST /api/subscriptions/{id}/cancel` with `immediate: true`. Access ends immediately and there are no new charges. The response confirms: *"Subscription canceled immediately. Access has been revoked."*

## Step by step: create an option with a contract

*Role: owner or admin.*

1. **Monetization › Options › Create billing option**.
2. Name: something that states the term, such as *Resident · 12 months*.
3. Under **Payment & Pricing**: **Price** (the amount for each month), **Billing Interval = Monthly**.
4. Under **Contract length**, choose **3 months**, **6 months**, **12 months** or **Other length** (1 to 36). The screen confirms: *"Billed monthly. Canceling before 12 months keeps billing until the contract ends."*
5. Payment methods, who pays the fee, and save.
6. On the plan, tick the new option next to the no-contract option.

## Examples with numbers

**Resident · 12 months, R$ 790/month, card.**
Twelve charges of R$ 790. Each month, the platform fee is R$ 55.22 + R$ 2.49 = R$ 57.71, and **R$ 732.29** is left. Over the whole contract: R$ 9,480 in sales and **R$ 8,787.48** for the community.

**The same person cancels in month 4.**
The cancellation is set for the end of month 12. They keep paying and using it until then: all 12 months are charged.

**Compared with the no-contract monthly option (R$ 890).**
On the pricing page, the option with a contract shows the savings: (890 − 790) / 890 ≈ **11%**.

## Common errors and how to fix them

| Message | What to do |
|---|---|
| *A contract duration is only available for monthly subscriptions* | Use the Monthly interval, or remove the contract |
| *Contract duration must be a whole number of months between 1 and 36* | Fix the term |
| The subscriber says they canceled and are still being charged | That's the contract: charges continue until the end. An admin can end it early, if appropriate |

## Frequently asked questions

**Does the contract lock in the add-on?**
No. The add-on can be removed at any time, even while the plan is under contract.

**Can I change the term of an option that already has subscribers?**
Yes. Existing subscribers keep their subscription's contract; the renewal uses the new term.

**What if the card declines partway through the contract?**
The subscription becomes past due, like any other. See [Renewal](/pagamentos/renovacao).

**Can I use a coupon on an option with a contract?**
Yes. A **forever** coupon gives the discount on every monthly payment of the contract; **once**, only on the first; **repeating**, on the first N months. See [Coupons](/monetizacao/cupons).

**Can the subscriber see how long is left on the contract?**
They see the date: *"Contract until…"* on the Billing page. After canceling, they see *"Ends on…"*.

**Is there a penalty for leaving early?**
There's no penalty: what exists is the commitment to pay the monthly fees until the end. To release someone early, the staff ends the contract.

**Contract or annual in installments?**

| | Monthly contract | [Annual in installments](/monetizacao/anual-parcelado) |
|---|---|---|
| Charges | One a month | One a year, in up to 12 card installments |
| Card limit | Only the monthly fee | The yearly amount |
| PIX and boleto | Every month | Once, in full |
| Leaving early | Charged until the end of the contract | No refund; access until the end of the year |

## In the API

`commitmentMonths` (1 to 36, or `null`) on the `SUBSCRIPTION` product with `billingInterval: "MONTHLY"`. The subscription carries `commitmentEndsAt` and, once canceled, `cancelEffectiveAt`. `POST /api/subscriptions/{id}/cancel` with `immediate: true` ends it right away, for the owner and admin only. See [Subscriptions](/api/referencia/subscriptions).

## Related

- [Billing options](/monetizacao/opcoes-de-cobranca)
- [Annual in installments](/monetizacao/anual-parcelado)
- [Member billing](/pagamentos/faturamento-do-membro)