Accounting · head to head
Karbon vs Lago

Lago
Accounting
Open-source billing infrastructure for usage-based models
- From
- Free
- Rated
- -
The short version
- Only Lago has a free tier, so it costs nothing to try first.
- Each has a real cost: Karbon monthly billing option only available for teams of 4 or more users; Lago free tier limited to 10,000 entities per month with 5M event cap
Where they differ
Only the attributes on which Karbon and Lago actually diverge.
Identical on both: user rating (Not yet rated), category (Accounting).
What each one covers
Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.
Only in Karbon
Nothing recorded that Lago does not also cover.
Only in Lago
- Real-time usage metering
- Multiple pricing models
- Automated invoicing
- Prepaid credits
- Entitlements
- Multi-currency support
- Payment orchestration
- Revenue analytics
What people use each for
The jobs each tool is most often brought in to do.
Karbon
- Automating client document collection for tax practice intakenot Lago
- Tracking all client requests in workflows tied to jobsnot Lago
- Aligning hours worked with billable time per engagementnot Lago
- Automating period close by connecting practice management to accountingnot Lago
- Streamlining client document submission and approval workflowsnot Lago
Lago
- Building usage-based billing for high-volume APIs and infrastructurenot Karbon
- Implementing metered billing for AI and tokenized servicesnot Karbon
- Creating subscription and hybrid pricing modelsnot Karbon
- Managing multi-currency billing for global companiesnot Karbon
- Maintaining billing infrastructure without vendor lock-innot Karbon
Where each one falls short
Documented limitations, not opinions. Every one is a constraint you would hit in normal use.
Karbon
- Monthly billing option only available for teams of 4 or more users
- Team plan at $59/month per user minimum cost may be expensive for smaller practices
- No seat license discounts published; scaling costs linearly with user count
Lago
- Free tier limited to 10,000 entities per month with 5M event cap
- No specific pricing published for Pro annual plan or Scale plan
- Self-hosted and on-premise deployments require engineering resources
- Community support only on free tier
- Scale plan requires annual contracts and sales engagement
Pricing, plan by plan
Karbon
$59/month- Team$59/month
- Per-user pricing
- Designed for small accounting firms
- Minimum team size of 4 for monthly billing
- Business$89/month
- Per-user pricing
- Workflow automation
- Integrations for growing practices
- Enterprise$null/mo
- Custom pricing
- Tailored for large accounting firms
- Dedicated support
Lago
Free- Build (Free)Free
- 10,000 managed entities per month
- 5M usage events per month
- 1K events per second rate limit
- Pro$399/month
- 10,000 entities included (graduated pricing to 100K)
- 25M usage events included (to 500M with graduated rates)
- 10K events per second (upgradeable to 100K)
- Scale$null/custom
- Custom entity and event volumes
- 50K events per second (upgradeable to 100K)
- RBAC and SSO (SAML)
Which should you pick?
Choose Karbon if
Nothing in the data separates Karbon from Lago on the points above - pick on price and on how each one feels to use.
Choose Lago if
- You need real-time usage metering.
- You want to start without paying.
- You work on Web, Cloud, Self-hosted, On-premise, VPC.
- You also want multiple pricing models.
Questions people ask
- Is Karbon or Lago better?
- Neither clearly leads. Karbon starts at $59/month and Lago at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
- Which is cheaper, Karbon or Lago?
- Lago has a free tier; the other does not. Paid plans start at $59/month for Karbon and Free for Lago.
- Does Karbon or Lago run on more platforms?
- Karbon runs on Web. Lago runs on Web, Cloud, Self-hosted, On-premise, VPC.
- Can I use Lago for free?
- Yes. Lago has a free tier, so you can try it without paying. Karbon starts at $59/month.
- What is Karbon best used for?
- Karbon is most often used for automating client document collection for tax practice intake, tracking all client requests in workflows tied to jobs, aligning hours worked with billable time per engagement, automating period close by connecting practice management to accounting. Of those, automating client document collection for tax practice intake and tracking all client requests in workflows tied to jobs are not what Lago is typically brought in for.
- What can Karbon do that Lago cannot?
- Lago covers Real-time usage metering, Multiple pricing models, Automated invoicing, Prepaid credits.
Answered from the vendors’ own pages
Karbon: How much does Karbon cost?
Karbon pricing starts at $59 per user per month (Team plan, billed annually) or $79 per user per month (monthly billing for 4+ users). Business plan is $89/month annual or $99/month monthly. Enterprise pricing is custom.
SourceLago: Can I use Lago open-source for free?
Yes, Lago is open-source under the AGPLv3 license and can be self-hosted. The cloud-based Build plan is also free with limits of 10,000 entities and 5M events per month.
SourceKarbon: Is there a discount for annual billing on Karbon?
Yes, Karbon offers annual billing at a discount compared to monthly. Team plan is $59/month annually versus $79/month monthly. Business plan is $89/month annually versus $99/month monthly.
SourceLago: What payment providers does Lago integrate with?
Lago integrates with Stripe and Adyen for payment processing. It is not a payment processor itself but orchestrates payments through these providers.
SourceKarbon: What is the minimum user requirement for monthly billing on Karbon?
Karbon requires a minimum team size of 4 users to access monthly billing. Teams smaller than 4 must choose annual billing.
SourceLago: Does Lago support multiple currencies?
Yes, Lago supports multi-currency billing with automatic currency conversion for global businesses.
SourceRelated pages
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