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Update exchange-and-refund-azure-reservations.md
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articles/cost-management-billing/reservations/exchange-and-refund-azure-reservations.md

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@@ -126,7 +126,7 @@ The original invoice is canceled, and a new invoice is created. The money is ref
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Azure has the following policies for cancellations, exchanges, and refunds.
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## How is refund calculated
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**How is refund calculated**
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When a reservation is exchanged or canceled, the refund is calculated based on the number of remaining days in the reservation period. The calculation is done in UTC and uses a consistent formula to ensure fairness and transparency. Taking an example, if you bought an reservation on July 10, 2024, and exchanged it on July 9, 2025, only 1 day remains in the reservation. You’ll receive a small refund for that single day.
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