Understanding licenses in Toggl Track
How licenses work, how they're billed, and how to remove ones you no longer need.
Toggl Track's paid plans are billed per license, not per user. This article explains what a license is, how licenses get created and freed up, and how they affect your bill — especially on annual plans.
What is a license?
A license is a paid seat in your organization's subscription. Every member of a paid organization occupies exactly one license. Your organization can never have more members than licenses, but it can have more licenses than members — unassigned extra licenses like this are called vacant licenses.
How licenses are created
Whenever an admin invites or adds a new member to the organization, Toggl Track automatically creates and assigns a license for them. This is billed pro-rata. Read more in Paying monthly vs paying annually.
How licenses become vacant
When an admin deactivates or deletes a member, that member no longer counts toward your active user count — but their license is not automatically removed from your subscription. It becomes a vacant license: still part of your license count, and still billed.
Vacant licenses aren't wasted, though — they let you assign a new team member to that spot at no extra cost for the rest of the current billing cycle. See Managing organization and workspace members for how to add and remove members.
How to remove a vacant license
If you don't plan to fill a vacant license, remove it so you stop paying for it:
- Open the Subscription page in the Toggl Track web app.
- Click the 3-dot control at the end of the Toggl Track row
- Choose Manage Licenses
- Update the license total on the modal.
- Confirm the change.
Removing a license takes effect immediately and lowers your license count. If you need to add someone back later, a new license will be created and billed at that point.
How licenses affect renewal billing
This matters most on annual plans. When you buy annual licenses, you're committing to that number of licenses for the full year. If you remove team members during the year, their licenses stay on your account — and stay paid for — unless you manually remove them.
Example: Your organization buys 20 Premium licenses on an annual plan. Over the next 12 months, 3 people leave and are removed from the organization, but their licenses are never removed. At renewal, even though you now have 17 active users, you'll be charged for 20 licenses again — unless you remove the 3 vacant licenses before your renewal date.
The same principle applies on monthly plans, but since renewal happens every month, vacant licenses have far less time to accumulate before you get a chance to remove them.
Tips and suggestions
- Check the Licenses section on your Subscription page periodically, especially in the run-up to an annual renewal.
- If someone leaves and won't be replaced soon, remove their license right away rather than just deactivating them.
- Deactivating (rather than deleting) a user keeps their data easy to find, but remember it doesn't free up a license by itself — that's a separate step.
- For the full pricing picture, see Basic information on Toggl Track pricing.
Updated on: 07/14/2026
Thank you!