> ## Documentation Index > Fetch the complete documentation index at: https://zenskar.com/docs/llms.txt > Use this file to discover all available pages before exploring further. # Percent pricing model ## Percent pricing model The percent pricing model is one of the [pricing models](/docs/20260301/pricing-models/concepts/pricing-models). This page explains how it calculates the amount of a pricing preset. ### Map of concepts | Concept | Details | | - | - | | [Percent pricing model](#percent-pricing-model-a-share-of-an-amount) | The percent pricing model charges a percentage of the quantity of each period. The quantity is usually an amount of money. | | [Point-in-time products](#point-in-time-products-a-share-of-each-billing-period) | If the product is a point-in-time product, each billing period costs the percentage of its own quantity. | | [Period-of-time products](#period-of-time-products-a-share-for-each-pricing-period) | If the product is a period-of-time product, the percentage applies to the average quantity of each pricing period. The period ratio converts the result to each billing period. | | [Partial periods](#partial-periods) | If a billing period is only partly covered, the partial-period handling decides whether the amount is prorated. | | [On-demand quantities](#on-demand-quantities-on-period-of-time-products) | If a period-of-time product uses the on-demand quantity strategy, each quantity costs the full percentage in the billing period in which it occurs. | | [Percent pricing model on a line item](#percent-pricing-model-on-a-line-item) | A line item can override the percentage and the pricing period. | ### Related modules The following modules use the percent pricing model: | Module | Details | | - | - | | [Products](/docs/20260301/product-modules/products/concepts/products#pricing-presets-how-you-charge) | A pricing preset can use the percent pricing model. For the steps, see [Set up the percent pricing model](/docs/20260301/product-modules/products/how-to-guides/pricing-presets#set-up-the-percent-pricing-model). For the fields, see [Percent fields](/docs/20260301/product-modules/products/reference/pricing-presets#percent-fields). | | [Contracts](/docs/20260301/product-modules/contracts/concepts/line-items/pricing) | A line item calculates its charges with the percent pricing model of its pricing preset, and can override its values. The billing of the line item decides the billing periods. See [Line item: billing](/docs/20260301/product-modules/contracts/concepts/line-items/billing). | ## Percent pricing model: a share of an amount The **percent pricing model** is the [pricing model](/docs/20260301/product-modules/products/glossary#pricing-model) that charges a percentage of the quantity. The percent pricing model has one value: the percentage, in **Percentage of amount**. For each period, the amount is the percentage of the quantity of that period: ```text theme={null} amount = quantity × percentage / 100 ``` The quantity is usually an amount of money, such as the total value of the transactions of a customer in a period. A [billable metric](/docs/20260301/product-modules/products/glossary#billable-metric) measures it. The amount is in the currency of the pricing preset. Zenskar does not convert the quantity between currencies. The percentage can be from 0 to 100, with up to 6 decimal places. A percentage of 2.9 gives the following amounts: | Quantity | Amount | | - | - | | 1,000 | \$29.00 | | 12,500 | \$362.50 | | 250,000 | \$7,250.00 | Zenskar keeps the full precision of the percentage during the calculation. It rounds the amount to the currency at the end of the calculation of the [line item](/docs/20260301/product-modules/contracts/glossary#line-item). What a period is depends on the [product type](/docs/20260301/product-modules/products/glossary#product-type). See [Point-in-time products](#point-in-time-products-a-share-of-each-billing-period) and [Period-of-time products](#period-of-time-products-a-share-for-each-pricing-period). ## Point-in-time products: a share of each billing period For a [point-in-time product](/docs/20260301/product-modules/products/glossary#point-in-time-product-type), the percentage applies to each quantity once, with no period attached. For example, 2.9% of each transaction. A pricing preset of a point-in-time product has no [pricing period](/docs/20260301/product-modules/products/glossary#pricing-period). The amount of each [billing period](/docs/20260301/product-modules/contracts/glossary#billing-period) is the percentage of the quantity of that billing period. Billing periods do not affect each other. A pricing preset at 2.9% of the transaction value, with metered usage and monthly billing, gives the following amounts: | Billing period | Quantity | Amount | | - | - | - | | January | 12,500 | \$362.50 | | February | 40,000 | \$1,160.00 | | March | 0 | \$0.00 | The line item decides which quantity falls in which billing period, through its [quantity strategy](/docs/20260301/product-modules/products/glossary#quantity-strategy) and its billing. See [Line item: quantity](/docs/20260301/product-modules/contracts/concepts/line-items/quantity) and [Line item: billing](/docs/20260301/product-modules/contracts/concepts/line-items/billing). ## Period-of-time products: a share for each pricing period For a [period-of-time product](/docs/20260301/product-modules/products/glossary#period-of-time-product-type), the percentage covers one pricing period. For example, 1.2% of the assets under management per year. Every pricing preset of a period-of-time product has a pricing period, and the pricing period is monthly by default. Zenskar applies the percentage to the quantity of the pricing period. It converts the result to each billing period with the [period ratio](/docs/20260301/product-modules/products/glossary#period-ratio): ```text theme={null} amount = quantity × percentage / 100 × period ratio ``` A pricing preset at 1.2% per year, with a quantity of \$500,000, gives the following amounts: | Billing period | Period ratio | Amount for each billing period | | - | - | - | | Month | 1/12 | \$500.00 | | Quarter | 1/4 | \$1,500.00 | | Year | 1 | \$6,000.00 | The period ratio counts calendar months in the same way as for the per-unit pricing model. See [Period-of-time products](/docs/20260301/pricing-models/concepts/per-unit#period-of-time-products-a-price-for-each-pricing-period) on the per-unit page. The quantity of a pricing period is the average quantity over the pricing period, weighted by the number of days at each quantity. When the line item changes the quantity partway through a pricing period, each part of the pricing period uses its own quantity. See [Partial periods](#partial-periods). This section describes billing periods that the line item covers in full, with the [recurring quantity strategy](/docs/20260301/product-modules/products/glossary#recurring-quantity-strategy). For the [on-demand quantity strategy](/docs/20260301/product-modules/products/glossary#on-demand-quantity-strategy), see [On-demand quantities](#on-demand-quantities-on-period-of-time-products). ## Partial periods The percent pricing model handles partial billing periods in the same way as the per-unit pricing model. For a period-of-time product with the recurring quantity strategy, the [partial-period handling](/docs/20260301/product-modules/products/glossary#partial-period-handling) of the line item decides whether a partial part of a billing period is prorated by days or charged in full. See [Partial periods](/docs/20260301/pricing-models/concepts/per-unit#partial-periods) on the per-unit page. A pricing preset at 14.5% per month, with a quantity of \$2,000, monthly billing periods that start on the 1st, and a line item that starts on February 15, 2024, gives the following amounts for February: | Partial-period handling | Calculation | Amount | | - | - | - | | **Prorate** | \$2,000 × 14.5 / 100 × 15/29 | \$150.00 | | **Charge Full** | \$2,000 × 14.5 / 100 | \$290.00 | For a point-in-time product, the pricing model does not prorate. The on-demand quantity strategy never prorates. See [On-demand quantities](#on-demand-quantities-on-period-of-time-products). ## On-demand quantities on period-of-time products With the [on-demand quantity strategy](/docs/20260301/product-modules/products/glossary#on-demand-quantity-strategy), a quantity occurs at one point in time, not as a level that holds over the billing periods. For a period-of-time product, Zenskar charges the full percentage of an on-demand quantity, in the billing period in which the quantity occurs: ```text theme={null} amount = quantity × percentage / 100 ``` The period ratio and the partial-period handling do not apply. The amount is not spread over later billing periods. A pricing preset at 1.2% per year, with monthly billing, gives the following amounts: | Quantity strategy | Quantity | Amount | | - | - | - | | Recurring | \$500,000 | \$500.00 in each month (\$500,000 × 1.2 / 100 × 1/12) | | On demand | \$100,000 in August | \$1,200.00 in August, and nothing in the other months | ## Percent pricing model on a line item A line item calculates its charges with the percent pricing model of its pricing preset. A [price override](/docs/20260301/product-modules/contracts/glossary#price-override) on the line item can change the percentage and, for a period-of-time product, the pricing period. The pricing model stays percent. The calculations on this page then use the overridden values. See [Line item: pricing](/docs/20260301/product-modules/contracts/concepts/line-items/pricing). This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.