Definition
Overage is the charge for exceeding a contracted usage limit, often at a higher rate than the committed tier.
Overage rates are where usage-based contracts make their margin: the unnegotiated per-unit price above your commit can be several times the tier rate. Size the commitment to real demand and negotiate the overage rate, not just the base.
Go deeperSoftware total cost of ownership: the hidden costsRelated terms
From definition to deal
Benchside turns overage into the exact questions, exclusions, and lock-in math for your specific vendor - your first project is free.