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Seat true-up calculator
Enter your contracted seats, your peak use, the seat price and the true-up premium. You get the true-up cost and how much of it is premium.
A true-up charges you for seats used beyond your contract, often at a higher rate. At the default numbers 18 extra seats cost USD 3,456, of which USD 576 is premium over the contract price.
Written by Procurement VMS Editorial Team · Reviewed by Michael, Procurement Advisor Expert · Updated
Your numbers
The boxes start with an example so you can see how it works. Replace them with your own figures.
Your result
Using 18 seats over your contract costs USD 3,456 for the remaining 8 months, and USD 576 of that is premium. Adding the seats at renewal would cost USD 4,320 for the next year.
| Seats over the contract | 18 seats |
|---|---|
| True-up cost for the rest of the term | USD 3,456 |
| Same seats at the contract price | USD 2,880 |
| Premium paid because of the true-up | USD 576 |
| Cost of adding the seats to the next term | USD 4,320 |
The currency box changes the label only. Enter amounts in the currency you choose.
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- PDF guide with the formula, a worked example and a checklist of what to enter
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The files open with the example numbers from the page. Type yours over the blue cells in the Excel file. The calculator on this page is free to use without a form.
How the seat true up calculator works
The formula
True-up cost = extra seats x contract price per seat per year x (1 + premium) x months left / 12.
A true-up is the bill for using more than you bought. Some vendors measure it at a set date, and others at any point. The rate can be the contract price or a higher list price, so the premium clause matters.
Know your headroom before a growth period. A quick top-up purchase at the contract price is usually cheaper than a surprise true-up at the end of the term.
The example numbers are illustrative and are not benchmarks. Use your own data for any decision.
How to use it with your own data
- Check the order form for how the vendor counts seats and when.
- Enter peak use, not the average, since most contracts measure the peak or the count at a date.
- Compare the true-up with a mid-term addition at the contract rate.
Mistakes that skew the answer
Reading average use
Contracts usually measure peak or count at a date. Use the number the vendor will use.
Overlooking the premium clause
A true-up at list price can sit well above the contract price. Read the order form.
Waiting until the audit
Most vendors can audit. It is cheaper to add seats than to be found short.
What to do with the result
Take the numbers into the software renewal price increase calculator and the SaaS license waste calculator so you right-size in both directions. Track the contract terms in the contract renewal tracker.
Questions about the seat true up calculator
What is a software true-up?
It is a charge for usage above what you licensed, calculated after you have used it.
Can I avoid a true-up?
Yes, by adding seats before you exceed the contract, by removing inactive users and by negotiating true-up at the contract price.
Is a true-up the same as an audit finding?
They are related. An audit may find over-use, and a true-up is the resulting bill or the routine annual reconciliation.
How do I negotiate it?
Ask for the true-up at the contract price, for the right to add seats at that price during the term and for a grace margin.