An open-source API for metering and usage-based billing, supporting hybrid pricing models and self-hosting.
Lago is an open-source API for metering and usage-based billing, designed to automate consumption tracking, subscription management, and invoicing for SaaS companies. It solves the engineering nightmare of implementing flexible billing systems by providing an event-based, programmable solution that supports hybrid pricing models.
Engineers and product teams at SaaS companies, especially those with product-led growth models, who need to implement or scale usage-based or hybrid billing without relying on proprietary solutions.
Developers choose Lago for its open-source, self-hostable nature, avoiding vendor lock-in and revenue-based fees. It offers composability with existing tools, data privacy by keeping data on your infrastructure, and flexibility for hybrid pricing and go-to-market motions.
Open Source Metering and Usage Based Billing API ⭐️ Consumption tracking, Subscription management, Pricing iterations, Payment orchestration & Revenue analytics
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Lago's architecture allows charging for any trackable event, enabling complex usage-based pricing models as emphasized in the features section.
It avoids revenue-based fees common in proprietary solutions, offering a free self-hosted version and transparent SaaS pricing, as stated in the philosophy.
Designed for both subscription and usage components, it addresses modern SaaS needs, with templates for companies like Algolia and Segment.
Self-hostable option ensures customer data stays on your infrastructure, enhancing security and compliance, as highlighted in the open architecture section.
Requires Docker and manual configuration with environment variables, which can be complex and time-consuming for teams without dedicated DevOps expertise.
Launched in 2022, it may lack the stability, extensive integrations, and community support of established solutions like Stripe Billing or Chargebee.
The copyleft license might not be suitable for all commercial use cases, especially in proprietary software environments, requiring careful legal consideration.
Lago is an open-source alternative to the following products:
A subscription billing and revenue management platform that handles recurring payments, invoicing, and revenue recognition for businesses.
Chargebee is a subscription billing and revenue management platform that helps businesses automate recurring payments, invoicing, and subscription lifecycle management.
Stripe Billing is a subscription and invoicing platform by Stripe that handles recurring billing, pricing models, and revenue recognition.