On demand billed before free usage

Where does the bug appear (feature/product)?

Cursor IDE

Describe the Bug

It looks like with newer versions of Cursor, the On-Demand usage/billing happens before the additional free usage. This was not the case with previous cursor versions from a few days ago (don’t remember the exact version, apologies).

Steps to Reproduce

Just reach the included usage and let some free usage to build up. It will bill the on-demand usage before the included additional free usage.

Expected Behavior

The Free usage “on-us” should be consumed before the on-demand billing.

Screenshots / Screen Recordings

Operating System

Windows 10/11

Current Cursor Version (Menu → About Cursor → Copy)

Version: 2.0.40 (user setup)
VSCode Version: 1.99.3
Commit: a9b73428ca6aeb2d24623da2841a271543735560
Date: 2025-10-30T04:12:35.564Z
Electron: 34.5.8
Chromium: 132.0.6834.210
Node.js: 20.19.1
V8: 13.2.152.41-electron.0
OS: Windows_NT x64 10.0.26100

For AI issues: which model did you use?

Sonnet 4.5, GPT-5, Haiku 4.5

Does this stop you from using Cursor

Yes - Cursor is unusable

Hey, thanks for the report. This looks like a billing logic bug, free usage should be applied before on‑demand charges.

I’ll pass this to the team. In the meantime, could you please confirm:

Hey, thanks for the reply.

  • I am seeing the same in my dashboard as well.
  • Started seeing this between 26th and 28th of October, I believe

We have the same issue. Our On-Demand usage reset today, but included and free did not. As a result, all usage - even in auto - is being billed On-Demand.

Give it some time, it will reset too, just takes longer which kind of looks like a bug. @deanrie what can we expect as a result of this.

Obviously I don’t really care about a couple of bucks but some people might have a lot higher bills due to that which isn’t really okay.

Thanks for your patience. The engineering team is tracking this issue in the billing logic.

You’re right that the different reset times for on‑demand and included/free usage seem to be part of the same bug. The team understands this may lead to unexpected charges for some users.

I don’t have an ETA on the fix yet. I’ll let you know as soon as I hear back from the team. Regarding incorrect charges caused by this bug, the team will likely resolve them after the fix is deployed - I recommend checking your dashboard once the fix is out.

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