What it does
Lago combines usage metering, pricing plans, subscriptions and invoicing for software products. Teams define how events become billable quantities, then connect a payment provider for collection. The open-source edition is free to self-host under AGPL-3.0; managed Cloud and self-hosted Premium use custom commercial terms.
Lago lets you separate a measurement from its price. For example, a storage event can carry a number of gigabytes, while the billable metric decides how those values are added or carried across billing periods. A plan then sets what the resulting quantity costs.
When creating a billable metric, choose its event code, calculation method and property to measure. Filters can separate dimensions such as a cloud provider. The recurring setting determines whether the measured state carries into the next period or resets. These choices matter as much as the price: a sum of consumption and a count of active seats describe different things.
Choose who operates the system
| Option | Access and operating responsibility |
|---|---|
| Self-hosted open source | Free AGPL-3.0 edition; your team operates the software and infrastructure |
| Self-hosted Premium | Commercial terms arranged with Lago; your team operates the deployment |
| Lago Cloud | Custom managed Premium service, hosted in a chosen US or EU region |
Self-hosted setup requires an organization account with a billing email and administrator password. In the web app, the Developer section provides the programming interface (API) keys. Running the code yourself also means maintaining its databases, upgrades and monitoring.
Cloud accounts are arranged with Lago's team. Confirm the region first because the API address must match it. Create the metric, plan and customer, assign the plan, send usage, then connect a payment provider. Lago prepares and tracks invoices; the connected provider processes payments.
Premium features and extras require attention when comparing editions. The pricing page lists capabilities such as progressive billing, tax integrations and automatic payment follow-up as add-ons. A free deployment should not be assumed to contain every commercial feature.
Cloud has no separate sandbox inside an organization. Use another organization for testing. Before sending real bills, check that event codes, recurring behavior and payment integration match the intended pricing model.
Strengths
- Metrics can distinguish calculation methods, filters and state carried between periods.
- A free open-source edition and commercial deployments share the billing model.
- Cloud can run in either the US or EU with region-specific endpoints.
Watch out for
- Self-hosted installations require database, upgrade and monitoring work.
- Several billing and integration capabilities are paid add-ons.
- Cloud testing requires a separate organization rather than an in-organization sandbox.
Best for
- Software teams billing measured product consumption
- Developers wanting a self-hosted billing engine
- Businesses choosing between managed and internally operated billing
Sources
- Lago deployment options and Premium feature comparison (Oct 27, 2026)
- Official Lago repository and AGPL-3.0 license (Oct 27, 2026)
- Lago self-hosting editions and responsibilities (Oct 27, 2026)
- Lago Cloud regions, setup and testing boundaries (Oct 27, 2026)
- Configure Lago metric aggregation and filters (Oct 27, 2026)
- Lago local organization signup and API keys (Oct 27, 2026)
