Suggested Savings

Savings Calculations: Weighted Average

SaaSLicense offers flexible savings configuration for instances where an application's API is unable to provide user license assignments.

After the application's pricing details have been loaded into the Pricing tab, weighted average can be turned on within an application's Configuration tab while in Edit mode.
weighted average
When weighted average calculations are being used, SaaSLicense distributes inactive Users across all User type licenses proportionally, according to particular license "weight" across the  User types of licenses available. Savings are then calculated using weighted average price.
 Example licensing from Application Contract:
weighted average example licenses
1. Calculate weighted average monthly price by formula: SUM((price per license - discount) * #purchased licenses * payment period multiplier) / SUM(#purchased licenses)/12
2. Distribute inactive users through all user types licenses proportionally and calculate savings.
For the example licensing shown above, here are the calculations:
1. Calculate Monthly Weighted Average Price
License Price($) #Purchased Payment period multiplier Discount % Annual Cost ($)
PSA User                             49.00 121 12 20.57                   56 512.86  
PSA T&E User                             25.00 150 12 20.57                   35 743.50  
  Total # of licenses 271                       92 256.36  
Monthly Weighted Average Price                             28.37 * 271               =                   92 256.36  
2. Distribute Inactive Users and calculate savings per license type:
  Number of inactive users 83  
  Inactive users distribution    
License #Purchased Weight of license (Proportion rate) Distributed # of inactives Annual Savings($)
PSA User 121 44.65 37                   12 595.89  
PSA T&E User 150 55.35 46                   15 659.75  


weighted ave screenshot