Softwr

Accounting · head to head

Lago vs Paddle

Lago logo

Lago

Accounting

Open-source billing infrastructure for usage-based models

From
Free
Rated
-
Full reviewWebsite
Paddle logo

Paddle

Accounting

The complete payments infrastructure for SaaS

From
$5/percent_plus_transaction
Rated
-
Full reviewWebsite

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; Paddle paddle charges 5% plus 50 cents on every checkout transaction, which is well above a bare payment processor rate
  • They diverge on capability: Lago covers Real-time usage metering, Paddle covers Payment processing.

Where they differ

Only the attributes on which Lago and Paddle actually diverge.

Attributes where Lago and Paddle differ
AttributeLagoPaddle
Starting priceFree$5/percent_plus_transaction
Pricing modelFreemium with optional paid tierstransaction
Free tierYesNo
PlatformsWeb, Cloud, Self-hosted, On-premise, VPCWeb, Api
FoundedUnknown2012

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 Paddle

  • Payment processing
  • Sales tax handling
  • Subscription management
  • Checkout
  • Revenue metrics
  • Stripe
  • PayPal
  • Various

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 Paddle
  • Implementing metered billing for AI and tokenized servicesnot Paddle
  • Creating subscription and hybrid pricing modelsnot Paddle
  • Managing multi-currency billing for global companiesnot Paddle
  • Maintaining billing infrastructure without vendor lock-innot Paddle

Paddle

  • Selling SaaS or digital products with a merchant of record handling taxnot Lago
  • Global subscription billing and checkoutnot Lago
  • Offloading sales tax and VAT compliance for cross border salesnot 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

Paddle

  • Paddle charges 5% plus 50 cents on every checkout transaction, which is well above a bare payment processor rate
  • The 50 cent fixed component falls heavily on low value sales, and products under $10 require custom pricing agreed with sales
  • Invoicing is not covered by the published rate and requires custom pricing
  • As a merchant of record Paddle sits between the seller and the customer, so payouts and tax handling run through Paddle rather than the seller's own processor

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)

Paddle

$5/percent_plus_transaction
  • Pay-as-you-go$5/percent_plus_transaction
    • 5% + 50¢ per checkout transaction
    • Global payments and billing unified in one platform
    • Cross-border sales tax compliance
  • Custom Pricing$null/contact
    • All pay-as-you-go features
    • Custom pricing tailored to business model
    • Optional premium services access

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.
Lago review

Choose Paddle if

  • You need payment processing.
  • You work on Web, Api.
  • You also want sales tax handling.
Paddle review

Questions people ask

Is Lago or Paddle better?
Neither clearly leads. Lago starts at Free and Paddle at $5/percent_plus_transaction, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Lago or Paddle?
Lago has a free tier; the other does not. Paid plans start at Free for Lago and $5/percent_plus_transaction for Paddle.
Does Lago or Paddle run on more platforms?
Lago runs on Web, Cloud, Self-hosted, On-premise, VPC. Paddle runs on Web, Api.
Can I use Lago for free?
Yes. Lago has a free tier, so you can try it without paying. Paddle starts at $5/percent_plus_transaction.
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 Paddle is typically brought in for.
What can Lago do that Paddle cannot?
Lago covers Real-time usage metering, Multiple pricing models, Automated invoicing, Prepaid credits. Paddle covers Payment processing, Sales tax handling, Subscription management, Checkout.

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.

Source
Paddle: How much does Paddle charge per transaction?

Paddle charges 5% plus 50 cents per checkout transaction on their pay-as-you-go plan. Custom pricing is available for products under $10 or those requiring invoicing.

Source
Lago: 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.

Source
Paddle: Are there hidden fees with Paddle?

No. Paddle emphasizes all-in-one pricing with no hidden costs, migration fees, or monthly fees. The stated 5% plus 50¢ rate covers payments, billing, tax compliance, fraud protection, and support.

Source
Lago: Does Lago support multiple currencies?

Yes, Lago supports multi-currency billing with automatic currency conversion for global businesses.

Source
Paddle: Does Paddle offer custom pricing?

Yes. Paddle offers custom pricing arrangements for businesses with specific needs. Customers can contact Paddle directly to discuss custom pricing tailored to their business model.

Source
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