Why use this?

Lago connects product usage to revenue by metering events, applying pricing rules, managing credits and entitlements, and generating itemized invoices. It is particularly strong for AI and SaaS companies that bill by tokens, API calls, seats, compute, or other consumption metrics.

Engineering and finance teams choose Lago when standard subscription billing tools cannot handle hybrid pricing, prepaid credits, granular metering, or self-hosting requirements. Lago calculates and invoices charges while a separate payment processor handles the actual payment. [65]

Key Features

• Usage metering and event ingestion
• Subscription, usage-based, prepaid, and hybrid pricing
• Credits, wallets, entitlements, and quotas
• Invoicing, dunning, and revenue workflows
• Self-hostable under AGPL-3.0 or available as managed Lago Cloud