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Tiered Billing

Tiered billing applies different per-unit rates depending on how much of a resource is consumed. Higher volumes unlock lower unit prices, encouraging growth while rewarding scale. Subscribd implements graduated tiering: each tier’s rate applies only to the portion of units within that tier’s range. A flat fee can optionally be added when a tier is reached.

Plan configuration

Use the tiered pricing rule:
All amounts are in minor currency units (cents for USD). unit_amount is per-unit cost in cents. flat_amount is a fixed fee charged when the tier is reached.

How graduated tiers are calculated

For 12,000 API calls with the configuration above:

Reporting usage for tiered plans

Tiered plans are typically paired with usage reporting. Report consumption during the billing period:
Usage is summed at the end of each billing period and the tiered calculation is applied to produce the invoice.

Creating a tiered subscription

Next steps