Tiered pricing: graduated vs volume.

Worked example

Tier 1 is $0.10 a unit up to 1,000, tier 2 is $0.08 up to 5,000, and tier 3 is $0.06 above that. For 1,500 units, graduated billing charges 1,000 x $0.10 = $100.00 plus 500 x $0.08 = $40.00, a total of $140.00 ($0.0933 a unit). Volume billing puts all 1,500 units in tier 2: 1,500 x $0.08 = $120.00. The volume bill is $20.00 lower.

How it works

Stripe's pricing models page lists tiered pricing as one where the unit cost changes with quantity (volume-based pricing) or usage (graduated pricing). This tool computes both from the same tiers so you can see the gap.

Graduated total = sum of (units in each band x that band's price) + base fee. Volume total = all units x the price of the tier the total lands in + base fee. A usage exactly on a tier limit stays in the lower tier.

Volume pricing has cliffs: one more unit that crosses a limit can lower the whole bill. Graduated pricing rises smoothly. Check which model your provider actually uses before relying on a quote.

Sources and basis (opened 2026-10-08): Recurring pricing models | Stripe Documentation for the volume-based and graduated terms. The band maths and totals are arithmetic on your inputs.

Educational maths on the tiers you enter. Your provider's own price table and rounding rules decide what you are actually billed. Everything runs in your browser. Nothing you type is sent or stored.

FAQ

What is the difference between graduated and volume pricing?

Graduated pricing charges each band of units at its own price. Volume pricing charges every unit at the price of the tier your total reaches.

Why is the volume bill lower in the example?

All 1,500 units are priced at the tier 2 rate of $0.08, so the first 1,000 units cost $0.02 less each than under graduated billing. That is a $20.00 difference.

Which units fall exactly on a tier limit?

They count in the lower tier. A tier that runs up to 1,000 includes unit 1,000, and unit 1,001 is the first in the next tier.