Accounting · head to head
Lago vs Karbon

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: Lago free tier limited to 10,000 entities per month with 5M event cap; Karbon monthly billing option only available for teams of 4 or more users
Where they differ
Only the attributes on which Lago and Karbon 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 Lago
- Real-time usage metering
- Multiple pricing models
- Automated invoicing
- Prepaid credits
- Entitlements
- Multi-currency support
- Payment orchestration
- Revenue analytics
Only in Karbon
Nothing recorded that Lago does not also cover.
What people use each for
The jobs each tool is most often brought in to do.
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
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
Where each one falls short
Documented limitations, not opinions. Every one is a constraint you would hit in normal use.
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
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
Pricing, plan by plan
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)
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
Which should you pick?
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.
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.
Questions people ask
- Is Lago or Karbon better?
- Neither clearly leads. Lago starts at Free and Karbon at $59/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
- Which is cheaper, Lago or Karbon?
- Lago has a free tier; the other does not. Paid plans start at Free for Lago and $59/month for Karbon.
- Does Lago or Karbon run on more platforms?
- Lago runs on Web, Cloud, Self-hosted, On-premise, VPC. Karbon runs on Web.
- 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 Lago best used for?
- Lago is most often used for building usage-based billing for high-volume apis and infrastructure, implementing metered billing for ai and tokenized services, creating subscription and hybrid pricing models, managing multi-currency billing for global companies. Of those, building usage-based billing for high-volume apis and infrastructure and implementing metered billing for ai and tokenized services are not what Karbon is typically brought in for.
- What can Lago do that Karbon cannot?
- Lago covers Real-time usage metering, Multiple pricing models, Automated invoicing, Prepaid credits.
Answered from the vendors’ own pages
Lago: 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: 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: 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: 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: Does Lago support multiple currencies?
Yes, Lago supports multi-currency billing with automatic currency conversion for global businesses.
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.
SourceRelated pages
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