What is the Usage-Based calculator?

Introduction

This article explains how the Usage-Based calculator helps end-customers estimate total billing costs for usage-based and hybrid offers before making a purchase decision. The calculator considers pricing plans, price sources, and markups to provide accurate cost estimates.

In this article:

• How the Usage-Based calculator works
• Using the calculator to estimate costs

How the Usage-Based calculator works

Once a Vendor has configured a Usage-Based Subscription Offer pricing plan, Customers can use the calculator to estimate their total costs for a Billing Cycle before purchasing. The calculator functions similarly to the plan preview feature but incorporates price sources and Markups for more accurate estimates.

For information on configuring usage-based pricing plans, refer to the article "How to Set up and Operate Usage-Based Offer."

Using the calculator to estimate costs

Follow these steps to estimate your usage costs:

1. In the Product catalog, select the "Estimate" button on the desired Offer.
   

2. The calculator displays a form based on the Vendor's pricing plan configuration. 
   

   You can:

   • Enter your estimated usage amount in the provided fields
   • View the calculated usage Price based on variables configured in the pricing plan
   • See the grand total, which includes:
     • For hybrid offers: the Subscription Price plus estimated Usage Fee
     • For Usage-Based Subscriptions: the estimated Usage Fee only
3. If Markups are updated, all prices displayed in the interface will automatically adjust to reflect the changes.
   

Summary

The Usage-Based calculator enables Customers to make informed purchasing decisions by estimating total costs before committing to Usage-Based Subscriptions or hybrid offers. The tool incorporates pricing plans, price sources, and Markups to provide accurate cost projections based on estimated usage levels.