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diff --git a/examples/custom_severity_calculator.py b/examples/custom_severity_calculator.py
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+++ b/examples/custom_severity_calculator.py
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+# This is an example on how to create your own custom formatter
+
+from __future__ import annotations
+
+from typing import Optional
+
+import robusta_krr
+from robusta_krr.api.models import Severity, ResourceType, register_severity_calculator
+
+
+@register_severity_calculator(ResourceType.CPU)
+def percentage_severity_calculator(
+    current: Optional[float], recommended: Optional[float], resource_type: ResourceType
+) -> Severity:
+    """
+    This is an example on how to create your own custom severity calculator
+    You can use this decorator to bind a severity calculator function to a resource type.
+    The function will be called with the current value, the recommended value and the resource type.
+    The function should return a Severity enum value.
+
+    If you have the same calculation for multiple resource types, you can use the `bind_calculator` decorator multiple times.
+    Then, the function will be called for each resource type and you can use the resource type to distinguish between them.
+
+    Keep in mind that you can not choose the strategy for the resource type using CLI - the last one created for the resource type will be used.
+    """
+
+    if current is None and recommended is None:
+        return Severity.GOOD
+    if current is None or recommended is None:
+        return Severity.WARNING
+
+    diff = abs(current - recommended) / current
+    if diff >= 0.5:
+        return Severity.CRITICAL
+    elif diff >= 0.25:
+        return Severity.WARNING
+    elif diff >= 0.1:
+        return Severity.OK
+    else:
+        return Severity.GOOD
+
+
+# Running this file will register the formatter and make it available to the CLI
+# Run it as `python ./custom_formatter.py simple --formater my_formatter`
+if __name__ == "__main__":
+    robusta_krr.run()