Lago is an open-source usage-based billing platform for SaaS. See 2026 pricing, self-hosted vs cloud features, pros and cons, and top billing alternatives.
Category
Finance
Pricing
Open Source, from Free (self-hosted Community Edition); Cloud plans are custom-quoted
Lago is an open-source metering and usage-based billing platform that helps SaaS and API companies manage subscriptions, invoicing, wallets, and revenue analytics, with a self-hostable core released under the AGPLv3 license.
Founded by former Qonto colleagues Anh-Tho Chuong and Raffi Sarkissian, Lago positions itself as an open, self-controlled alternative to closed billing platforms like Stripe Billing and Zuora, particularly for businesses with complex, consumption-based pricing.
Key Features
Lago combines usage-based, subscription, hybrid, and prepaid credit pricing models in one system, with real-time metering capable of ingesting high volumes of usage events and converting them into accurate invoices.
The platform exposes every customer, subscription, and billing action through webhooks and a GraphQL/REST API, and integrates with external payment processors like Stripe, GoCardless, and Adyen rather than replacing payment processing itself.
Pricing
The Community Edition is free to self-host forever under the AGPLv3 license, including the full billing engine, metering, invoicing, wallets, and analytics dashboard, deployed via Docker on a company's own infrastructure.
Lago Cloud, the managed hosting option, is sold in two quote-only tiers, Business and Enterprise, that add the customer billing portal, automatic dunning, tax integrations, CRM/accounting integrations, and Lago Embedded; pricing requires contacting sales.
Key Features
Real-time usage metering — Ingests high volumes of usage events and converts them into billable metrics for accurate, real-time invoicing.
Flexible pricing models — Supports usage-based, flat subscription, hybrid, and prepaid credit pricing on the same customer plan.
Wallets and prepaid credits — Built-in wallet and prepaid credit balance primitives support progressive and credit-based billing.
Webhook and GraphQL/REST API — Every customer, subscription, and billing event is exposed through APIs and webhooks for full programmatic control.
Payment processor integrations — Connects to Stripe, GoCardless, and Adyen for payment collection alongside tax engine integrations.
Self-hosted AGPLv3 core — The full billing engine can be self-hosted for free and indefinitely, with no license fee or feature crippling.
Analytics dashboard — Built-in revenue and usage analytics give visibility into billing performance without a separate BI tool.
Role-based API permissions — Granular API key permissions and role-based access control support secure multi-team billing operations.
Pros & Cons
Pros
Genuinely free, full-featured open-source core that can be self-hosted indefinitely
Handles complex usage-based, hybrid, and credit-based pricing models natively
Strong API and webhook coverage for deep integration into existing product stacks
Backed by well-known investors and founders with direct billing-industry experience
AGPLv3 licensing gives full code transparency and avoids vendor lock-in
Cons
Self-hosted Community Edition lacks the customer portal, dunning, and tax integrations found in Cloud
Lago Cloud pricing is not published and requires a sales conversation to obtain a quote
Self-hosting requires infrastructure and DevOps resources most small teams may lack
Smaller ecosystem and community than long-established billing platforms like Stripe Billing
AGPLv3 license terms may require legal review for companies building on top of the self-hosted core
Pricing
Community Edition Free Free (self-hosted)
Lago Cloud Business Custom pricing Custom / annual contract
Lago Cloud Enterprise Custom pricing Custom / annual contract
Frequently Asked Questions
Is Lago free to use?
Yes, Lago's Community Edition is free and open source under the AGPLv3 license, and can be self-hosted indefinitely at no cost via Docker.
What pricing models does Lago support?
Lago supports usage-based, flat subscription, hybrid, and prepaid credit-based pricing, all configurable on the same customer plan.
Does Lago process payments directly?
No, Lago integrates with external payment processors such as Stripe, GoCardless, and Adyen rather than processing payments itself.
Who founded Lago?
Lago was founded in 2021 in Paris by Anh-Tho Chuong and Raffi Sarkissian, both former employees of the fintech company Qonto.
What is the difference between Lago Community Edition and Lago Cloud?
The Community Edition is the free, self-hosted core billing engine, while Lago Cloud is a managed, quote-only service that adds the customer portal, dunning, tax integrations, and other commercial features.
What are the main alternatives to Lago?
Common alternatives include Stripe Billing, Chargebee, Zuora, Recurly, and usage-based billing specialists Metronome and Orb.