Lago ingests all events coming from your back-end system and converts them into billable metrics that track your customers’ consumption.
Our flexible pricing models allow you to create hybrid pricing plans that may include a subscription and multiple consumption-based charges.
Depending on the configuration of your plans, Lago automatically calculates how much you are owed and generates an invoice for each customer.
Create marketing campaigns with coupons that customers can redeem to get a discount on their next invoice.
Use add-ons to charge for additional services and products, such as implementation support and optional features.
Monitor consumption throughout the billing cycle and help customers understand how they are charged.
Define tax rates at company level or customer level to ensure compliance with local legislation.
Handle dozens of recurring and one-off banking fees.
Bypass payment processors by debiting your own wallets.
Use any end-point as a billable metric.
Offer prepaid credits to get paid in advance.
Charge recurring platform fees.
Increase your revenue by billing customers for overage.
Create a Heroku-like pricing model in no time.
Assign several plans to a customer and measure consumption.
You can find our detailed answer in this blog post, but essentially:
1/ To address the issue of the increasing diversity and complexity of pricing models
Combinations of pricing dimensions (recurring fees, one-off, payment fees, etc.) are infinite, and teams usually want to iterate on these models over time. That’s why engineers end up investing a huge amount of time to maintain their own billing system, even when they already use an existing closed-source billing service like Stripe Billing or Chargebee.
2/ To offer a way out of the 'rent seeker' pricing model (a cut on transaction volume)
We aim at striking a fairer pricing model for our own service, not relying on taking a cut on each transaction that goes through Lago. To start with, our open-source library is forever free.
We chose the AGPLv3 license. We believe that this license will allow us to create a sustainable model to bring value to our community in the long term. You can find more information about AGPLv3 in this article.
Lago is an open-source billing API that helps you monitor usage, manage pricing plans and automate invoicing (among other things). We don't process payments but integrate with your favorite payment processors (e.g. Stripe Payments, PayPal, Paddle).
Lago automatically generates invoices that can be used to trigger the cash collection process. Invoices are available in PDF format or can be retrieved via webhook.
Our priority is to generate value for our users and our community. We have started to think about monetization and our guiding principles are clear: we want a pricing that is fair, transparent and sustainable. We will not take a percentage of your revenue. Click here to learn more.
We’re a nimble team who previously built from scratch and maintained a usage-based billing system for a fintech unicorn. At the time, we seriously underestimated the dozens of edge cases, engineering challenges, and huge impact on business teams (i.e. revenue growth, marketing, customer success, finance). We're now on a mission to build the tool we wish we had.
On top of that, we’re backed by Y Combinator, and some of the best open-source and fintech leaders.
With Lago, your data never has to leave your infrastructure. Even if Lago had to shut down - which is definitely not our plan - your billing system would remain unchanged, as you would be able to host our open-source library.
Also, feel free to customize our API as much as needed, by forking our code: make your billing fit your needs instead of hacking around incumbent SaaS or worse, building your home-made system.