Lago
What is Lago?
Lago is an open-source, API-first billing infrastructure platform designed to manage usage-based, hybrid, and subscription pricing models. The solution provides a programmable billing engine that allows developers to define meters and pricing logic as code, intended to eliminate the need for custom internal billing systems for high-volume event data.
Key Capabilities
- Real-Time Usage Metering: Ingests raw events (e.g., API calls, token consumption, compute seconds) via an event-driven architecture to track billable metrics at scale.
- Flexible Pricing Engine: Supports multi-dimensional models including pay-as-you-go, tiered pricing, volume discounts, prepaid credits, and hybrid structures that combine fixed recurring fees with variable usage.
- Automated Billing & Invoicing: Generates invoices based on real-time consumption data, including automated handling of proration, upgrades, downgrades, and multi-currency/tax logic (e.g., VAT, GST).
- Entitlements & Feature Flags: Manages feature access and usage limits directly within the billing layer to align product access with subscription tiers and credit balances.
- Payment Orchestration: Integrates with payment gateways such as Stripe, Adyen, and GoCardless to manage automated collections, dunning workflows, and retry logic.
- Revenue Analytics: Provides dashboards for monitoring Monthly Recurring Revenue (MRR), net revenue, and usage-to-revenue correlation.
Audience & Use Cases
- Audience: Software engineers, product managers, and finance operations teams at SaaS and AI organizations.
- Use Case: Implementing consumption-based billing for infrastructure-as-a-service (IaaS), managing complex AI model usage costs, and providing white-labeled billing interfaces for multi-tenant platforms.
Technical Specifications
- Architecture: Event-driven system with a core built on Ruby on Rails.
- Deployment Options: Available as a managed Cloud service or an Open-Source/Self-Hosted edition for organizations requiring full data sovereignty.
- Security & Compliance: SOC 2 Type II certified and GDPR compliant.
- Integrations: Native support for Salesforce, HubSpot, NetSuite, and Avalara.
Categories & Use Cases
Technical Details
| Mobile Application | No |
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FAQs
What is Lago?
Lago is an open-source, API-first billing infrastructure platform designed to manage usage-based, hybrid, and subscription pricing models. The solution provides a programmable billing engine that allows developers to define meters and pricing logic as code, intended to eliminate the need for custom internal billing systems for high-volume event data.
What are Lago's top competitors?
Metronome and Orb are common alternatives for Lago.