The price tier is based on the number of available licenses or users created?

We have a being buying packages of licenses (annual). As today, they would total 650 available licences, but we will only be creating around 400 users. The price tier that you use, would it be based on the 650 or the 400? 

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650 is not a tier that Atlassian offer, so I'm not sure where you've got that from.

Tiers work by capping active users.  If you have a licence for 100 users, you can have 1 active user, 20, 50, 73, whatever, but you can't go over 100.  You can even create 250 users in the directory, but as long as only 100 can log in (the other 150 are not in the "can log in" groups, or are flagged as disabled), it will work.

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