A billing cycle is the interval of time between the end of one billing statement date to the next billing statement date for goods or services a company provides to another company or consumer on a recurring basis. Although billing cycles are most often set on a monthly basis, they can vary in length depending on the type of product or service rendered. The billing cycle is important for both companies and customers. It guides companies on when to charge customers and helps businesses estimate how much revenue they will receive. Billing cycles also help customers regulate their expectations regarding the payment timetables so they can budget their money responsibly.

At the end of each billing cycle, customers are given a certain amount of time to send their payment, which is referred to as a “grace period”. If the account holder doesn’t send payment, then the account may be subject to penalties. Credit card bills are due on the same date each month, or the next business day if the due date falls on a holiday or weekend. The length of the billing cycle varies depending on the lender or service provider, but usually, it lasts from 20 to 45 days.

Billing cycles are used not only for credit cards but also for subscription services, utilities, mortgages, and more. The date at which the billing cycle begins depends on various factors, including the type of service being offered and the customer’s needs. For example, an apartment complex may issue a bill for rent on the first day of every month, regardless of when tenants signed their individual leases[[1]](https://www....