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How is my billing usage calculated?

Written by Imran Ahmed

Your Pencil Spaces billing depends on which billing version your plan uses. We currently have two billing versions:

  • V1: Per-user-hour billing. This is our legacy billing model. It applies to users who remain on older pricing plans and haven’t upgraded to our latest pricing.

  • V2: Group-session billing. This is our newer billing model, introduced with our latest pricing plans on September 1st, 2026.

The two versions calculate Space usage differently. V1 charges based on participant-hours, while V2 uses a group-session rate plus additional participant charges when a session exceeds the included group size.

Which billing calculation applies to my plan?

Use the table below to identify your billing version based on your plan.

Billing version

Plans

How Space usage is calculated

V1: Per-user-hour

Mini, Basic, Pro, Advanced

Per user, per hour

V2: Group-session

Pro (step-based), Expert, Master

Group-session rate plus additional participant charges, calculated by session duration

Note: The Pro plan name appears under both billing versions. Your billing version depends on which pricing model your account uses. Pro on the legacy pricing model uses V1, while Pro on the newer, step-based pricing model uses V2.

V1: Per-user-hour billing

Per-user-hour billing calculates Space usage based on the number of participants present and the time they spend in a Space. You’re charged only when at least two users are present.

How per-user-hour billing works

  • Billing starts when two or more users are present.

  • Usage is calculated per user, per hour. Each plan has a flat rate per user-hour.

  • Time spent alone in a Space isn’t billed. If you’re the only person in a Space, that time won’t count toward your usage.

  • Inactive users are removed after five minutes. Time after an inactive user is removed isn’t billed.

  • Multiple devices don’t increase usage. Joining from more than one device under the same account doesn’t count as additional users.

Example:

A teacher and a student spend 30 minutes together in a Space.

Calculation: 0.5 hours × 2 users = 1 billable Space hour

If the teacher spends 10 minutes preparing in the Space before the student joins, that preparation time isn’t billed.

Per-user-hour billing examples

Scenario

Billable Space hours

1 user for 1 hour

0 hours

2 users for 1 hour

2 hours

3 users for 30 minutes

1.5 hours

V2: Group-session billing

Group-session billing combines a group-session rate with additional participant charges.

A fixed group-session rate covers participants up to a defined group size. If the number of participants exceeds that limit, additional participants are charged at the applicable additional participant rate.

How group-session billing works

For example, suppose your plan has the following rates:

  • Billing threshold: 2 users

  • Participants included in the group-session rate: 4 users

  • Group-session rate: $0.40 per hour

  • Additional participant rate: $0.20 per user, per hour

Your hourly cost would be calculated as follows:

Number of users

Cost per hour

1

$0.00

2–4

$0.40

5

$0.60

8

$1.20

For a session with eight users, the calculation is:

$0.40 group-session rate + (4 additional users × $0.20) = $1.20 per hour

Group-session billing can also support multiple additional-participant rate bands for larger groups.

Group-session allowances

Group-session plans include a dollar-based allowance for Space usage. This allowance is deducted from your total Space usage before any overage is calculated.

For example:

Item

Amount

Space usage

$5.80

Included allowance

$4.00

Billable overage

$1.80

The allowance applies to Space usage only. For users on custom or Scale plans, Cloud Recording and Web Viewer usage may be calculated separately.

Cloud Recording usage

For users on custom or Scale plans, Cloud Recording charges may be calculated separately from your Space usage.

  • Recording usage is counted only while recording is active.

  • Recording charges are calculated independently of Group-session Space usage.

Web Viewer usage

For users on custom or Scale plans, Web Viewer usage may be calculated separately from Space usage.

  • Usage is calculated per viewer, per hour.

  • Any included allowance and overage are applied separately.

Need more help?

If you have questions about your billing or usage, please contact our Pencil Spaces Support team. We’re available 24/7 and will be happy to help.

For more details on how to access our live support team, see our guide: How to access 24/7 live support.

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