Graduated

The graduated price model is perfect if you want to define several price tiers. This price model allows you to apply a programmatic discount depending on the number of units consumed, a flat fee or a combination of both. A graduated price model is calculated as a stair-case applying all applicable tiers to the final pricing. Graduated is also referred to as a tier price model and volume is an alternative to graduated. Let’s examine the following tier model (in USD):

	From	Up to	Unit amount	Fee amount
Tier 1	0	1000	400	15000
Tier 2	1001	2000	300	10000
Tier 3	2001	~	200	0

Examplifying a quantity of 2500 would apply the following calculation:

tier 1 = (1000 x 400) + 15000 = 415000 +
tier 2 = (2000 x 300) + 10000 = 610000 +
tier 3 = (500 x 200) + 0 = 100000
totals: 1125000 USD

Hint: When creating a price, a request body may be as follows:

...
"priceModel": "graduated",
"pricing": {
    "usd": {
        "tiers": [
            {
                "unitAmount": 400,
                "feeAmount": 15000,
                "upTo": 1000
            },
            {
                "unitAmount": 300,
                "feeAmount": 10000,
                "upTo": 2000
            },
            
            {
                "unitAmount": 200,
                "feeAmount": 0
            }
        ]
    }
}
...

The last tier has no upper limit. This means that any usage beyond the defined tiers will be charged at the last tier’s rate.

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