function calculateTieredRate() {
// Inputs
var totalUnits = parseFloat(document.getElementById('trc_total_units').value);
if (isNaN(totalUnits) || totalUnits < 0) {
alert("Please enter a valid total consumption/volume.");
return;
}
// Get Tier Data
var limits = [
parseFloat(document.getElementById('trc_limit_1').value),
parseFloat(document.getElementById('trc_limit_2').value),
parseFloat(document.getElementById('trc_limit_3').value),
parseFloat(document.getElementById('trc_limit_4').value)
];
var rates = [
parseFloat(document.getElementById('trc_rate_1').value),
parseFloat(document.getElementById('trc_rate_2').value),
parseFloat(document.getElementById('trc_rate_3').value),
parseFloat(document.getElementById('trc_rate_4').value),
parseFloat(document.getElementById('trc_rate_remainder').value)
];
// Validation: Ensure rates are numbers (treat empty as 0)
for (var i = 0; i < rates.length; i++) {
if (isNaN(rates[i])) rates[i] = 0;
}
// Validation: Ensure limits are numbers (treat empty as 0, but usually implies skip)
// Logic: If a limit is empty/0, we assume the user stopped defining tiers there.
var remainingUnits = totalUnits;
var totalCost = 0;
var breakdownHtml = "";
var unitsInTier = 0;
var tierCost = 0;
// Process defined limits tiers
for (var i = 0; i < 4; i++) {
var limit = limits[i];
var rate = rates[i];
if (remainingUnits = limit) {
unitsInTier = limit;
} else {
unitsInTier = remainingUnits;
}
tierCost = unitsInTier * rate;
totalCost += tierCost;
remainingUnits -= unitsInTier;
if (unitsInTier > 0) {
breakdownHtml += "
";
breakdownHtml += "
Tier " + (i + 1) + " (First/Next " + limit + ")
";
breakdownHtml += "
" + unitsInTier.toFixed(2) + "
";
breakdownHtml += "
" + rate.toFixed(4) + "
";
breakdownHtml += "
" + tierCost.toFixed(2) + "
";
breakdownHtml += "
";
}
}
// Process Remainder
if (remainingUnits > 0) {
var rateFinal = rates[4];
tierCost = remainingUnits * rateFinal;
totalCost += tierCost;
breakdownHtml += "
A Tiered Rate Calculator is an essential tool for computing costs that vary based on usage volume. Unlike a flat-rate model where every unit costs the same, a tiered (or stepped) model charges different rates for specific blocks of consumption. This structure is commonly found in utility billing (electricity, water, gas), progressive tax systems, and bulk sales commissions.
How Tiered Pricing Works
In a tiered system, your total usage is split into "buckets" or blocks. You must fill the first bucket completely before moving to the next. Each bucket has its own specific rate.
Base Tier: usually covers the first block of units (e.g., the first 500 kWh) at a specific rate.
Secondary Tiers: apply to the next blocks of usage. These rates can be higher (progressive, to discourage waste) or lower (volume discounts).
Marginal vs. Effective Rate: Your marginal rate is the cost of the very last unit you consumed. Your effective rate is the total cost divided by total units—a weighted average of all tiers used.
Example Calculation
Imagine an electricity plan structured as follows:
Tier 1: First 100 kWh @ $0.10/kWh
Tier 2: Next 200 kWh @ $0.15/kWh
Remainder: Any usage over 300 kWh @ $0.20/kWh
If you consume 450 kWh, the calculation is:
Tier 1: 100 kWh × $0.10 = $10.00
Tier 2: 200 kWh × $0.15 = $30.00 (Total used so far: 300)
Remainder: 150 kWh (450 – 300) × $0.20 = $30.00
Total Cost: $10 + $30 + $30 = $70.00
Applications of This Calculator
This tool is versatile and can be used for various scenarios:
Utility Bills: Estimate electricity or water costs where rates increase with higher consumption.
Sales Commissions: Calculate earnings where commission percentages increase after hitting sales targets.
Income Tax: Estimate taxes in a progressive tax bracket system (input the bracket size as the "Limit").
Freight & Shipping: Calculate costs for weight-based shipping rates that change at specific weight thresholds.