Formula to calculate pricing with graduated, cumulative tier pricing

Hi All!
I'm trying to create a calculator that would calculate the total pricing for an account based on a graduated tier pricing model. We charge a license fee per user, and the more users you have, the cheaper your per user pricing.

For example, if we charge $100 per user for 1-50 users, $50 per user for 51-250 users, and $25 per user for 251+ users. However, if someone has 51 users, they don't suddenly begin paying $50*51 users. Instead, they pay $100*50 + 1*50, because they have 1 user in the new tier.

I found many solutions to calculate the price based on the number of users, but I can't figure out how to keep the pricing cumulative. I tried an IF formula but seemed to have messed it up, since I believe it's just multiplying the first pricing tier X the total # of users.

Can anyone help me? Thank you very much in advance!

without changing anything in your sample you can use the below approach for tiered results:

=SUMPRODUCT(--(A9>=(TEXT(B2:B4,"0;;;\0")+0)),A9-TEXT(B2:B4,"0;;;\0"),N(+C3:C5)-N(+C2:C4))

however, if you stored your upper thresholds (B3:B4) as actual numbers, you could dispense with the TEXT and shorten to:

=SUMPRODUCT(--(A9>=N(+B2:B4)),A9-N(+B2:B4),N(+C3:C5)-N(+C2:C4))

if you need to add more tiers just adjust range references accordingly

Thanks very much! That did the trick!! (And you were right - I had messed up my calculations - your numbers were correct)

Thank you!