How to Build Capped Installment Billing in Stripe

Charge a customer a fixed number of payments — for example split a fee into 2 or 3 installments — where the billing stops on its own after the last payment, emails an invoice for each charge, and stays tied to the right customer. Use this guide when you need a "pay in N" plan, not an open-ended subscription that recurs forever.

• [ ] A Stripe account with invoicing enabled.
• [ ] A customer record in Stripe (or a step that creates one) so every charge ties back to a person.
• [ ] The total amount and the number of installments (the cap) for each plan you offer.
• [ ] Stripe test mode and at least one test card for end-to-end verification.
• [ ] A decision on how a failed installment should behave (see Configuration).

1. 1

   Model the Amount

   Model each installment as an amount, not a forever-price. Decide the per-charge amount (total ÷ number of installments, handling any remainder on the final charge) and the cadence (for example monthly). The defining property is the cap: the plan must terminate after N charges.

2. 2

   Choose the Mechanism

   Choose the mechanism that stops after N charges. A plain subscription recurs indefinitely, so you need one of:

3. 3

   Create the Schedule

   Create the schedule bound to the customer. Point the schedule at the customer and set the iteration count to your cap so it self-completes:

4. 4

   Enable Invoice Emails

   Turn on invoice emails. Enable emailing of finalized invoices (Stripe setting, or collection_method=charge_automatically with invoice emails on) so the customer receives an invoice for every installment, not just the first.

5. 5

   Attach the Client

   Tie each charge back to the client record. Confirm the customer ID (and any internal client reference in metadata) flows onto every invoice, so each of the N payments is attributable to the right client in both Stripe and your own system.

6. 6

   Test Each Plan

   Hand-test each plan variant end to end. Run a full cycle for every plan you offer — the 2-payment plan and the 3-payment plan — advancing the billing clock (Stripe test clocks) through all installments and confirming it stops after the right number.

• a subscription schedule with a fixed number of phases/iterations that completes and cancels itself, or
• N scheduled invoices created up front against the customer.

   stripe subscription_schedules create \
     --customer=cus_XXX \
     --start-date=now \
     -d "phases[0][items][0][price]=price_installment" \
     -d "phases[0][iterations]=3" \
     -d "end_behavior=cancel"

• The 2-payment plan charges exactly twice, then stops; the 3-payment plan charges exactly three times, then stops.
• Every installment generates an invoice that is emailed to the customer.
• Each charge is linked to the correct customer (and internal client reference).
• After the final installment, the schedule is completed/cancelled with no further charges.
• The sum of the installments equals the intended total, remainder included.

• [ ] Every plan variant tested end to end through all its installments.
• [ ] Confirmed billing stops after the cap for each plan.
• [ ] Invoice email verified for every cycle, not just the first.
• [ ] Each installment attributable to the correct customer and internal client.
• [ ] Failed-payment / dunning behavior defined and tested.
• [ ] Remainder handling verified so the collected total is exact.
• [ ] Moved from test mode to live with live keys and a live test purchase.

• If installments should start on signature or delivery rather than immediately, set the schedule's start date from that event instead of now.
• For plans that mix an upfront deposit with installments, model the deposit as the first phase and the remaining balance as subsequent iterations.