> ## 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. # Pricing models ## Pricing models Pricing models are the calculation methods that Zenskar offers for pricing presets. ### Map of concepts | Concept | Details | | - | - | | [Pricing model](#pricing-models-how-an-amount-is-calculated) | Every pricing preset has one pricing model. The pricing model calculates the amount of each period from the quantity of that period. | | [Per-unit pricing model](#per-unit-pricing-model-the-same-price-for-every-unit) | The per-unit pricing model is the default. It charges the same price for every unit. | | [Percent pricing model](#percent-pricing-model-a-share-of-an-amount) | The percent pricing model charges a percentage of the quantity. It fits a quantity that is an amount of money, such as a transaction value. | | [Tiers](#tiers-ranges-of-quantity) | The volume and tiered pricing models split the quantity into tiers. Each tier has its own price. | | [Tier-reset period](#tier-reset-period-when-the-count-starts-again) | If the product is a point-in-time product, the tier-reset period decides how long quantities add up before the count starts again from the first tier. | | [Volume pricing model](#volume-pricing-model-one-price-for-every-unit) | The total quantity selects one tier, and every unit costs the price of that tier. | | [Tiered pricing model](#tiered-pricing-model-a-price-for-each-tier) | Each part of the quantity costs the price of the tier that it falls in. | | [Dimensional pricing model](#dimensional-pricing-model-a-price-for-each-combination) | Each combination of dimension values has its own price. Each of those prices uses the per-unit, percent, volume, or tiered pricing model. | | [Pricing models on a line item](#pricing-models-on-a-line-item) | A line item calculates with the pricing model of its pricing preset. If the line item overrides values of the pricing preset, the pricing model uses the overridden values. | ### Related modules Pricing models uses the following modules: | Module | Details | | - | - | | [Billable metrics](/docs/20260301/product-modules/usage/concepts/billable-metrics.md) | A pricing preset that meters usage takes its quantity from a billable metric. For the dimensional pricing model, the billable metric reports the quantity of each combination. | The following modules use pricing models: | Module | Details | | - | - | | [Products](/docs/20260301/product-modules/products/concepts/products.md#pricing-presets-how-you-charge) | Each pricing preset of a product uses one pricing model. You choose the pricing model and set its values when you add a pricing preset. | | [Contracts](/docs/20260301/product-modules/contracts/concepts/line-items/pricing.md) | Each line item of a contract calculates its charges with the pricing model of its pricing preset. A line item can override the values of the pricing model. | ## Pricing models: how an amount is calculated A **pricing model** is the method that a pricing preset uses to calculate an amount from a quantity. Every [pricing preset](/docs/20260301/product-modules/products/glossary.md#pricing-preset) has one pricing model. Zenskar offers five pricing models: | Pricing model | How it calculates the amount | | - | - | | [Per unit](#per-unit-pricing-model-the-same-price-for-every-unit) | Every unit costs the same price. | | [Percent](#percent-pricing-model-a-share-of-an-amount) | The amount is a percentage of the quantity. | | [Volume](#volume-pricing-model-one-price-for-every-unit) | The total quantity selects one [tier](#tiers-ranges-of-quantity), and every unit costs the price of that tier. | | [Tiered](#tiered-pricing-model-a-price-for-each-tier) | Each part of the quantity costs the price of the [tier](#tiers-ranges-of-quantity) that it falls in. | | [Dimensional](#dimensional-pricing-model-a-price-for-each-combination) | Each [combination](/docs/20260301/product-modules/products/glossary.md#combination) of [dimension values](/docs/20260301/product-modules/products/glossary.md#dimension-value) has its own price. | The per-unit pricing model is the default. All five pricing models are available for both [product types](/docs/20260301/product-modules/products/glossary.md#product-type). A pricing preset cannot change after you create it, so its pricing model cannot change either. A product that needs a different pricing model needs another pricing preset. See [Pricing presets](/docs/20260301/product-modules/products/concepts/products.md#pricing-presets-how-you-charge). Zenskar calculates the charges of a [line item](/docs/20260301/product-modules/contracts/glossary.md#line-item) period by period. For each period, the pricing model receives the quantity of that period and returns the amount of that period. The line item supplies the quantity, either as a [fixed quantity](/docs/20260301/product-modules/contracts/glossary.md#fixed-quantity) or from [metered usage](/docs/20260301/product-modules/products/glossary.md#metered-usage). See [Line item: quantity](/docs/20260301/product-modules/contracts/concepts/line-items/quantity.md). The pricing model is one step in the calculation of a line item. Other settings of the line item can change the quantity before the pricing model calculates, and the amount after it. See [Line item: quantity](/docs/20260301/product-modules/contracts/concepts/line-items/quantity.md), [Line item: minimum commitments](/docs/20260301/product-modules/contracts/concepts/line-items/minimum-commitments.md), and [Line item: discounts](/docs/20260301/product-modules/contracts/concepts/line-items/discounts.md). ## Per-unit pricing model: the same price for every unit The [per-unit pricing model](/docs/20260301/product-modules/products/glossary.md#per-unit-pricing-model) multiplies the quantity by one price for each unit. It is the default pricing model of a new pricing preset. > **[Per-unit pricing model](/docs/20260301/pricing-models/concepts/per-unit.md)** > > How the per-unit pricing model calculates amounts for point-in-time and period-of-time products. ## Percent pricing model: a share of an amount The [percent pricing model](/docs/20260301/product-modules/products/glossary.md#percent-pricing-model) charges a percentage of the quantity. It fits a quantity that is an amount of money, such as the value of the transactions that a [billable metric](/docs/20260301/product-modules/products/glossary.md#billable-metric) measures. > **[Percent pricing model](/docs/20260301/pricing-models/concepts/percent.md)** > > How the percent pricing model calculates amounts for point-in-time and period-of-time products. ## Tiers: ranges of quantity A **tier** is a range of quantity that has its own price per unit. The [volume pricing model](#volume-pricing-model-one-price-for-every-unit) and the [tiered pricing model](#tiered-pricing-model-a-price-for-each-tier) use tiers. The volume pricing model selects one tier for the whole quantity. The tiered pricing model splits the quantity across the tiers. A pricing preset with tiers has at least one tier. The first tier starts at 0. Each following tier starts where the previous tier ends. Each tier ends at an upper limit that is higher than the upper limit of the previous tier. The last tier has no upper limit, so it covers every quantity above the previous tier. The following tiers have three ranges: | Tier | Range | Price per unit | | - | - | - | | 1 | 0 to 1,000 | \$0.10 | | 2 | 1,000 to 10,000 | \$0.08 | | 3 | Above 10,000 | \$0.05 | A quantity equal to an upper limit, such as 1,000, belongs to the lower tier. The volume pricing model can move it to the higher tier with the [tier boundary](/docs/20260301/product-modules/products/glossary.md#tier-boundary). The price per unit of a tier can be 0 or more. A price per unit of 0 makes the units of that tier free. For the fields of the tier table, see [Volume and tiered fields](/docs/20260301/product-modules/products/reference/pricing-presets.md#volume-and-tiered-fields). ## Tier-reset period: when the count starts again The **tier-reset period** is the length of time after which the quantity counted against the tiers starts again from 0. A pricing preset has a tier-reset period only when the product is a [point-in-time product](/docs/20260301/product-modules/products/glossary.md#point-in-time-product-type) and the pricing model is volume or tiered. Within one tier-reset period, the quantities of its [billing periods](/docs/20260301/product-modules/contracts/glossary.md#billing-period) add up. When the next tier-reset period starts, the count starts again from 0, in the first tier. A tier-reset period of one quarter, with monthly billing and 600 units in each month, counts the following quantities: | Month | Quantity of the month | Count in the tier-reset period | | - | - | - | | January | 600 | 0 to 600 | | February | 600 | 600 to 1,200 | | March | 600 | 1,200 to 1,800 | | April | 600 | 0 to 600 | With the tiers in [Tiers](#tiers-ranges-of-quantity), the count passes the upper limit of the first tier in February. The volume and tiered pricing models use the count in different ways. See [Volume pricing model](#volume-pricing-model-one-price-for-every-unit) and [Tiered pricing model](#tiered-pricing-model-a-price-for-each-tier). The tier-reset period is monthly, quarterly, semi-annual, annual, or a custom length in whole months or years. It is monthly by default. With the [recurring quantity strategy](/docs/20260301/product-modules/products/glossary.md#recurring-quantity-strategy), the tier-reset period must be a whole multiple of the [quantity cadence](/docs/20260301/product-modules/contracts/glossary.md#quantity-cadence) of the line item. It must also align with the [billing cadence](/docs/20260301/product-modules/contracts/glossary.md#billing-cadence): one must be a whole multiple of the other. See [Line item: billing](/docs/20260301/product-modules/contracts/concepts/line-items/billing.md). A [period-of-time product](/docs/20260301/product-modules/products/glossary.md#period-of-time-product-type) has no tier-reset period. Its tiers apply to the quantity of each pricing period. ## Volume pricing model: one price for every unit The [volume pricing model](/docs/20260301/product-modules/products/glossary.md#volume-pricing-model) uses the total quantity to select one [tier](#tiers-ranges-of-quantity). Every unit then costs the price per unit of that tier. A larger quantity can move all units to a lower price. > **[Volume pricing model](/docs/20260301/pricing-models/concepts/volume.md)** > > How the volume pricing model selects a tier, and how the tier boundary decides where a quantity falls. ## Tiered pricing model: a price for each tier The [tiered pricing model](/docs/20260301/product-modules/products/glossary.md#tiered-pricing-model) splits the quantity across the [tiers](#tiers-ranges-of-quantity). Each part of the quantity costs the price per unit of its own tier. The amount always grows with the quantity. > **[Tiered pricing model](/docs/20260301/pricing-models/concepts/tiered.md)** > > How the tiered pricing model fills the tiers, and how the count continues within a tier-reset period. ## Dimensional pricing model: a price for each combination The [dimensional pricing model](/docs/20260301/product-modules/products/glossary.md#dimensional-pricing-model) charges each [combination](/docs/20260301/product-modules/products/glossary.md#combination) of [dimension values](/docs/20260301/product-modules/products/glossary.md#dimension-value) with its own price. Each of those prices uses the per-unit, percent, volume, or tiered pricing model. > **[Dimensional pricing model](/docs/20260301/pricing-models/concepts/dimensional.md)** > > How the dimensional pricing model splits usage by combination, and how the fallback price works. ## Pricing models on a line item A line item calculates its charges with the pricing model of its pricing preset. A [price override](/docs/20260301/product-modules/contracts/glossary.md#price-override) on the line item can change the values of the pricing model, such as the price per unit or the tiers. It cannot change the pricing model itself. See [Line item: pricing](/docs/20260301/product-modules/contracts/concepts/line-items/pricing.md). The API sets the pricing model of a pricing preset with [Create product pricing](/docs/api-reference/products/create-product-pricing.md). This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.