Softwr

Accounting · head to head

Lago vs Zuora

Lago logo

Lago

Accounting

Open-source billing infrastructure for usage-based models

From
Free
Rated
-
Full reviewWebsite
Zuora logo

Zuora

Accounting

Subscription billing and revenue recognition for companies whose pricing is too complex for a payments platform

From
$29/month
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; Zuora pricing includes a component tied to the volume you bill, so the fee rises with your own commercial success in a way a flat platform charge does not, and the renewal conversation after a strong year is a different negotiation from the original one.
  • They diverge on capability: Lago covers Real-time usage metering, Zuora covers Product catalogue.
  • Prices and features above were last checked on 30 August 2026.

Where they differ

Only the attributes on which Lago and Zuora actually diverge.

Attributes where Lago and Zuora differ
AttributeLagoZuora
Starting priceFree$29/month
Pricing modelFreemium with optional paid tierssubscription
Free tierYesNo
PlatformsWeb, Cloud, Self-hosted, On-premise, VPCWeb, Api
FoundedUnknown2007

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 Zuora

  • Product catalogue
  • Amendment engine
  • Usage rating
  • Recurring invoicing
  • Payments and collections
  • Revenue recognition
  • Quoting and CPQ
  • Multi entity and multi currency

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

Zuora

  • A software company whose contracts routinely change mid term and whose current billing tool cannot prorate an amendment correctlynot Lago
  • A business moving from perpetual licences to subscriptions that needs both the billing and the revenue recognition to hold up under auditnot Lago
  • A usage based product where metered consumption has to be rated against tiers and commitments before it can be invoicednot Lago
  • A group billing across several legal entities and currencies that has been reconciling invoices in spreadsheetsnot 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

Zuora

  • Pricing includes a component tied to the volume you bill, so the fee rises with your own commercial success in a way a flat platform charge does not, and the renewal conversation after a strong year is a different negotiation from the original one.
  • Implementation is a multi quarter project that normally requires a systems integrator, so the first year cost is dominated by services rather than subscription, and the internal cost of finance and engineering time on catalogue and process design is larger still.
  • Product catalogue decisions made during implementation constrain what you can price and report for years, and changing them later means reworking live subscriptions and the revenue history attached to them rather than editing a configuration.
  • It is a subsidiary system rather than the general ledger, so someone has to own the reconciliation between billing, revenue and the accounts every period, and a mapping error surfaces as an unexplained variance in the close rather than as an obvious failure.
  • Billing and revenue are separate products with separate implementations, so a company that buys billing first and adds revenue later runs a second project against data models that were not designed together in the first place.

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)

Zuora

$29/month
  • LaunchFree
    • Up to $100K revenue
    • Core billing
    • Basic reporting
  • ScaleFree
    • Custom pricing
    • Advanced billing
    • Revenue automation

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 Zuora if

  • You need product catalogue.
  • You work on Web, Api.
  • You also want amendment engine.
Zuora review

Questions people ask

Is Lago or Zuora better?
Neither clearly leads. Lago starts at Free and Zuora at $29/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Lago or Zuora?
Lago has a free tier; the other does not. Paid plans start at Free for Lago and $29/month for Zuora.
Does Lago or Zuora run on more platforms?
Lago runs on Web, Cloud, Self-hosted, On-premise, VPC. Zuora runs on Web, Api.
Can I use Lago for free?
Yes. Lago has a free tier, so you can try it without paying. Zuora starts at $29/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 Zuora is typically brought in for.
What can Lago do that Zuora cannot?
Lago covers Real-time usage metering, Multiple pricing models, Automated invoicing, Prepaid credits. Zuora covers Product catalogue, Amendment engine, Usage rating, Recurring invoicing.

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
Zuora: When is a company ready for Zuora rather than a simpler billing tool?

When the pricing model breaks the simpler tool: mid term amendments, ramps, usage tiers, multi entity billing or a revenue recognition requirement. Companies with flat monthly plans and few changes do not need it and will not enjoy paying for it.

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
Zuora: Does Zuora replace our accounting system?

No. It is a billing and revenue subledger that posts journals to your general ledger. You still need the ledger and someone owning the reconciliation between them.

Lago: Does Lago support multiple currencies?

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

Source
Zuora: How long does an implementation take?

Plan in quarters. Catalogue design, order to cash process definition, data migration of existing subscriptions and ledger mapping each take real time, and the migration of live contracts is usually the hardest part.

Zuora: Does it calculate sales tax and VAT?

It integrates with third party tax engines rather than maintaining rates itself. Budget for that engine as a separate subscription and a separate integration.

Zuora: What changed when the company was taken private in 2025?

Ownership, not the product. As with any private equity owned platform, pay attention to renewal pricing behaviour and to roadmap commitments made verbally rather than contractually.

Zuora: Can we migrate our existing subscriptions in?

Yes, and it is the part of the project people underestimate. Every live contract has to arrive with its amendment history intact if the revenue schedules are to be right, so the migration is an accounting exercise as much as a data one.

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