This article will explain how Torii calculates the cost per user.
When viewing an individual User Page, Torii displays the user's total Annual cost at the top — this is the sum of the Annual cost column across all of that user's applications.
How the annual cost per app is determined
For each of a user's apps, Torii fills the Annual cost value using the first of the following that applies, in priority order:
- Cost allocation is configured for the app → Torii uses the app's per-user cost from the cost allocation report.
- Nothing is configured → Torii falls back to the sum of the user's license costs for that app.
- The user has no licenses for the app and nothing is configured → Annual cost is not assigned to tha user for the app.
Via the Cost allocation report, you can assign a cost allocation strategy that best fits your organization's needs, to get the most accurate evaluation of how much each user in that app costs.
How cost per user is calculated per allocation strategy
The way Torii calculates an app's annual cost per user depends on the app's cost allocation strategy:
| Strategy | How cost per user is calculated |
|---|---|
| Bottom-up — cost per license | From the cost of the license(s) each user is assigned |
| Bottom-up — cost per user | You manually enter a cost per user in the cost allocation report for that app. |
| Top-down — expenses | App expenses (last 12 months) ÷ users |
| Top-down — contracts | App active contract value ÷ users |
For the top-down strategies, "users" is counted the same way it appears on the application page:
- Integrated apps: current users with access
- Non-integrated apps: discovered users
Note: You can assign a different cost allocation strategy to each app. When running the cost allocation report, Torii will recommend a strategy based on available information in the platform. Read more about the cost allocation report here.
These values are recalculated daily as part of cost allocation, so the cost per user stays current as expenses, contract values, license costs, and user counts change.
Configuring Cost Per User
Cost per user is configured wherever you set up cost allocation:
- In bulk, from Expenses → Cost Allocation — the fastest way to populate a per-user cost for many apps at once. See Configuring Cost Allocation in Bulk.
- Per app, from the Application Page → Cost Allocation tab → Configure.
- For integrated applications, license costs (used by the bottom-up, cost-per-license strategy) can also be set from the Licenses page.