> ## Documentation Index
> Fetch the complete documentation index at: https://polar.sh/docs/llms.txt
> Use this file to discover all available pages before exploring further.

# Unit-Based Pricing

> Sell a quantity of anything, paid up front, with tiered rates

Unit-based pricing lets a customer buy a quantity of something and pay for it up front. Devices, licenses, gigabytes, servers. You name the unit, set the rate, and the buyer picks how many they want at checkout.

<Info>
  **Unit-based pricing is ideal for:**

  * Per-device or per-installation licensing
  * Prepaid capacity, such as storage or bandwidth
  * Any quantity that isn't a person and isn't measured after the fact
  * Products where volume discounts should apply to the declared quantity
</Info>

## Choosing between unit-based, seat-based, and metered

Three pricing models charge by quantity. They differ in what the quantity counts and when the customer pays.

| Model          | The quantity counts          | Customer pays    | Benefits go to                |
| -------------- | ---------------------------- | ---------------- | ----------------------------- |
| **Unit-based** | Anything that isn't a person | Up front         | The customer, once            |
| **Seat-based** | People                       | Up front         | Each member who claims a seat |
| **Metered**    | Consumption you record       | After the period | The customer, once            |

Pick seat-based when each unit maps to a person who needs their own access. Polar then handles invitations, seat claims, and per-member benefits.

Pick unit-based for everything else.

Pick metered when Polar counts the quantity for you, from usage events. With unit-based the buyer declares the number themselves, at checkout.

## How it works

The buyer chooses a quantity at checkout and pays for it immediately. The price comes from the tiers you configure and the quantity they picked.

On a subscription, the quantity carries across billing periods. You can change it at any time, and so can the customer if you let them. Polar prorates the difference. On a one-time purchase, the quantity is fixed at the moment of sale.

## Creating a unit-based product

<Steps>
  <Step title="Create a new product">
    From your dashboard, [create a new product](https://polar.sh/to/dashboard/products/new).
  </Step>

  <Step title="Configure basic settings">
    Set your product name, description, and media as usual.
  </Step>

  <Step title="Select unit-based pricing">
    Under **Pricing**, select:

    * **Product type**: Subscription or One-time
    * **Billing cycle** (subscriptions only): Monthly or Yearly
    * **Pricing type**: Unit-based
  </Step>

  <Step title="Name the unit">
    Set the singular and plural nouns for what you're selling, such as `device` and `devices`. They appear at checkout, in the Customer Portal, and on invoices. Leave them empty and Polar falls back to "unit" and "units".
  </Step>

  <Step title="Choose a tiering model">
    Under **Tiering model**, select how the quantity is priced:

    | Model                    | Description                                                                                                                           |
    | ------------------------ | ------------------------------------------------------------------------------------------------------------------------------------- |
    | **Fixed price per unit** | Every unit costs the same rate.                                                                                                       |
    | **Volume**               | The rate is set by the total quantity, and that rate applies to every unit. Crossing a threshold lowers the price on the whole order. |
    | **Graduated**            | Each tier range is priced at its own rate. The total is the sum across ranges.                                                        |

    Define a tier by an upper bound and a rate. The bound is inclusive, and each tier starts where the previous one ended. Leave the last tier's bound empty for an open-ended top range.

    **Example** with tiers at up to 10: \$10 per unit, and beyond: \$8 per unit:

    * Volume: 14 units = 14 × \$8 = \$112. Every unit gets the lower rate.
    * Graduated: 14 units = 10 × \$10 + 4 × \$8 = \$132. Each range keeps its own rate.
  </Step>

  <Step title="Set a minimum">
    **Minimum units** is the smallest quantity a customer can buy. It defaults to 1.

    There is no separate maximum field. If your last tier has a bound, that bound is the ceiling. Leave it open and customers can buy any quantity above the minimum.
  </Step>

  <Step title="Add benefits">
    Configure the benefits the customer receives on purchase.
  </Step>
</Steps>

### Combining with other prices

Add a fixed price alongside the unit-based one for a base fee plus a per-unit rate. Metered prices can sit on top of both, so a subscription can charge a flat monthly amount, a rate per device, and usage on a meter.

## Benefits

The customer receives each benefit once, whatever quantity they buy. Buying 40 devices grants one license key, not 40.

If you need one grant per unit, use [seat-based pricing](/docs/features/seat-based-pricing).

## Changing the quantity

You can change the quantity on a subscription from your dashboard or through the API at any time.

Customers can change it themselves from the Customer Portal once you allow it. Go to **Settings**, then **Customer portal**, and turn on **Enable subscription unit changes**. It is off by default.

### Proration

When the quantity changes mid-period, Polar prorates the difference using your organization's proration behavior:

* **Increasing the quantity** charges for the added units, prorated over the remainder of the period.
* **Reducing the quantity** credits the removed units for the unused part of the period.

The full amount applies from the next billing period onward.

## Limitations

* The quantity is a whole number. Fractional quantities need [metered billing](/docs/features/usage-based-billing/introduction) instead.
* Tier rates are whole cents.
* A product carries at most one unit-based price.
* Unit-based cannot be combined with seat-based or pay-what-you-want pricing.
* One-time purchases cannot change quantity after the sale. The customer buys again instead.
