Bulk Pricing Tier Calculator

Bulk pricing rewards customers for buying more — but only works if every tier still earns you a profit. This tool interpolates between your retail price (at the smallest qty) and a target unit price (at the largest qty, back-solved from your desired margin), then clamps anything below cost to avoid accidentally pricing to lose money.

The interpolation

Each tier's unit price is a linear interpolation between retail and the bulk-tier target:

Target unit price = Cost ÷ (1 − Desired margin%) | Tier price(qty) = Retail + (Target − Retail) × (qty − minQty) ÷ (maxQty − minQty) | If tier price < cost, clamp at cost.

Worked example

Unit cost 50 SAR, retail price 100 SAR (50% margin), bulk quantities [10, 50, 100, 500], target 20% margin at 500-unit tier:

1. Target unit price at 500 units = 50 ÷ (1 − 0.2) = 62.50 SAR
2. Tier 10 units: 100 SAR (0% discount, 50% margin) — retail unchanged
3. Tier 50 units: 96.94 SAR (3.06% discount, ~48% margin)
4. Tier 100 units: 92.85 SAR (7.15% discount, ~46% margin)
5. Tier 500 units: 62.50 SAR (37.5% discount, 20% margin) — target
6. Total revenue at 500 units = 31,250 SAR

Practical tips

• Always set tier thresholds your customers actually buy at — survey or check past orders.
• Target margin at the largest tier should be 5–15 points below your retail margin, not lower.
• If a tier clamps at cost, you're either pricing retail too high or asking for too little margin — adjust upstream.
• Pair bulk pricing with a quotation tool — generate the quote with the tier price baked in.
• For services, model volume as hours and the same math works.