Tiered / Bulk Pricing Calculator
Graduated against volume tier pricing on the same schedule. Volume pricing creates a cliff at every break where buying one more unit lowers the total bill, which graduated pricing never does.
Also called: volume discount calculator, graduated pricing.
₹75,250 for 850 units, an effective rate of ₹89 each. On the other mode it would be ₹72,250, a difference of ₹3,000. Graduated pricing has no cliff: one more unit always costs more in total.
How this is calculated
Graduated pricing charges each band at its own rate, the way an income tax slab works. Volume pricing finds the tier the total quantity falls in and applies that single rate to everything, which means crossing a break can make the whole order cheaper. That cliff is a real problem: customers game it, and one unit either side of a break can differ by thousands. Graduated pricing has no such discontinuity.
graduated prices each band separately; volume applies one rate to everything, which creates a cliff at each break- u
- Units
- L
- Tier limits
Method and limits
What it assumes
- Three tiers with the breaks you supply.
What it deliberately does not model
- Real schedules often mix modes or add minimum commitments.
Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator
Frequently asked questions
- Which mode should I use?
- Graduated, unless you specifically want the cliff as an incentive to buy more. Volume pricing means some customers pay less for buying more, which is hard to explain and easy to exploit.