Perinstallments

Perinstallments is a term used to describe a pricing and payment arrangement in which the total price of a product or service is divided into installments that are determined by ongoing delivery, usage, or time, rather than a single fixed upfront payment. Under this model, each installment may reflect the marginal value delivered during the preceding interval and can be recalculated at each period according to a defined formula. The structure often includes a base component and a variable component linked to measurable factors such as units delivered, consumption, or duration of service.

Mechanics typically involve a contractual agreement detailing how installments are calculated, when they are due, and how usage is measured. Common triggers include monthly usage meters, delivery milestones, or time-based intervals. Some perinstallment arrangements cap or floor total costs, while others allow total payments to rise or fall with actual use. Billing cycles, late-payment terms, and interest or fees are usually specified in the contract.

Applications span several sectors, including software as a service with usage-based pricing, equipment rental or leasing tied to operation levels, and project-based procurement where payments correspond to completed milestones or delivered units. Perinstallments can improve affordability for buyers and align payments with value received, but they introduce price variability and administrative complexity for both parties.

See also: installment sale, usage-based pricing, pay-per-use, milestone payments.