Usage tiered pricing with adjustments and formula support
Learn how to configure dynamic pricing with tiered usage charges and formula-driven adjustments, including discounts and multipliers, while respecting min/max thresholds.
You can configure dynamic pricing with tiered usage charges and apply formula-driven adjustments, such as discounts or multipliers, on top of the base pricing.
Business Scenario
A SaaS platform charges based on API calls. Different tiers apply, and a 10% discount adjustment is applied for premium customers.
Tier | Start Unit | End Unit | Base Price (per unit) | Formula Adjustment | Min. | Max. |
|---|---|---|---|---|---|---|
| 1 | 0 | 1000 | $0.05 | 10% discount | $40 | $60 |
| 2 | 1001 | ∞ | $0.03 | 10% discount | $80 | $200 |
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A customer uses 800 calls → Base = $40 → After 10% discount = $36 → Min = $40 enforced → Final = $40
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A customer uses 1,500 calls → Base = $40 (tier 1) + $15 (tier 2) = $55 → After 10% discount = $49.5 → within Min/Max → Final = $49.5
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A customer uses 10,000 calls → Base = $340 → After discount = $306 → Max = $200 enforced → Final = $200
This demonstrates how formula-based adjustments can be layered on top of tiered pricing while still respecting min/max thresholds.
Configure in Zuora UI
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Go to and open the product.
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Create or edit a rate plan.
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Select Charge Type as Usage and Charge Model as Tiered.
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In the Pricing section, select Dynamic Pricing.
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In the Decision Table:
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Attribute = Customer Segment (e.g., Standard vs. Premium).
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Define tiers (0–1000 = $0.05, 1001+ = $0.03).
In the Enter Formula box, enter a calculation such as Price * (1 - 0.1) for Premium customers.
Set Min and Max thresholds for each tier.
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Click Save.