Tiered Pricing Calculator

About this calculator

Tiered pricing charges a different unit rate depending on how much is used, most commonly with a lower rate for the first block of usage and a higher (or lower) rate once usage crosses a threshold into the next tier. The total bill is the sum of each tier's usage multiplied by that tier's rate — not the full quantity multiplied by a single rate.

This structure is common in software subscriptions, utility billing, and wholesale pricing, where providers want to reward (or price for) different levels of consumption rather than charging everyone the same flat rate regardless of volume. This calculator takes your total units used along with the rate and threshold for each tier and returns the total cost, split correctly across both tiers.