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Accounting · head to head

Paddle vs PostHog

Paddle logo

Paddle

Accounting

The complete payments infrastructure for SaaS

From
$5/percent_plus_transaction
Rated
-
PostHog logo

PostHog

Technology

The single platform to analyze, test, observe, and deploy new features

From
Free
Rated
-

The short version

  • Only PostHog has a free tier, so it costs nothing to try first.
  • Each has a real cost: Paddle paddle charges 5% plus 50 cents on every checkout transaction, which is well above a bare payment processor rate; PostHog the free tier covers 1M events, 5K web session recordings and 2.5K mobile recordings per month before usage-based billing starts
  • They diverge on capability: Paddle covers Payment processing, PostHog covers Product analytics.

Where they differ

Only the attributes on which Paddle and PostHog actually diverge.

Attributes where Paddle and PostHog differ
AttributePaddlePostHog
Starting price$5/percent_plus_transactionFree
Pricing modeltransactionusage-based
Free tierNoYes
PlatformsWeb, ApiWeb, Ios, Android, Api
CategoryAccountingTechnology
Founded20122020

Identical on both: user rating (Not yet rated).

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 Paddle

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

Only in PostHog

  • Product analytics
  • Session recording
  • Feature flags
  • A/B testing
  • Heatmaps
  • SQL access
  • Data warehouse
  • Apps platform

What people use each for

The jobs each tool is most often brought in to do.

Paddle

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

PostHog

  • Product analyticsnot Paddle
  • Feature experimentationnot Paddle
  • User behavior trackingnot Paddle
  • A/B testingnot Paddle
  • Debug production issuesnot Paddle

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

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

PostHog

  • The free tier covers 1M events, 5K web session recordings and 2.5K mobile recordings per month before usage-based billing starts
  • Accounts without a card on file are limited to 1 project; adding one raises it to 6
  • Data retention is 1 year until a card is added, which extends it to 7 years
  • Support is community-only until the account is on a paid plan
  • Error tracking is capped at 100K exceptions and surveys at 1500 responses per month on the free tier

Pricing, plan by plan

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

PostHog

Free
  • FreeFree
    • 1M events/month
    • 5K sessions/month
    • Unlimited users
  • Paid$undefined/month
    • $0.00031/event
    • $0.005/session
    • Advanced permissions
  • Enterprise$undefined/month
    • SAML SSO
    • Advanced security
    • Dedicated support

Which should you pick?

Choose Paddle if

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

Choose PostHog if

  • You need product analytics.
  • You want to start without paying.
  • You work on Web, Ios, Android, Api.
  • You also want session recording.

Questions people ask

Is Paddle or PostHog better?
Neither clearly leads. Paddle starts at $5/percent_plus_transaction and PostHog at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Paddle or PostHog?
PostHog has a free tier; the other does not. Paid plans start at $5/percent_plus_transaction for Paddle and Free for PostHog.
Does Paddle or PostHog run on more platforms?
Paddle runs on Web, Api. PostHog runs on Web, Ios, Android, Api.
Can I use PostHog for free?
Yes. PostHog has a free tier, so you can try it without paying. Paddle starts at $5/percent_plus_transaction.
What is Paddle best used for?
Paddle is most often used for selling saas or digital products with a merchant of record handling tax, global subscription billing and checkout, offloading sales tax and vat compliance for cross border sales. Of those, selling saas or digital products with a merchant of record handling tax and global subscription billing and checkout are not what PostHog is typically brought in for.
What can Paddle do that PostHog cannot?
Paddle covers Payment processing, Sales tax handling, Subscription management, Checkout. PostHog covers Product analytics, Session recording, Feature flags, A/B testing.

Answered from the vendors’ own pages

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
PostHog: What does PostHog's free tier include per month?

PostHog free tier includes: 1M analytics events, 5K session replays, 1M feature flag requests, 100K error tracking exceptions, 1,500 survey responses, 1M data warehouse rows, 10K data pipeline events, 100K AI observability events, 500 PostHog AI credits, 10K workflow messages, and 10GB log ingestion. Source: https://posthog.com/pricing

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
PostHog: How much data retention does PostHog provide on paid plans?

PostHog free tier provides 1-year data retention. Pay-as-you-go plans offer 7-year data retention across all projects, enabling longer historical analysis. Source: https://posthog.com/pricing

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
PostHog: What percentage of PostHog users stay on the free tier?

PostHog states that 97% of companies use PostHog for free, indicating extensive free tier adoption. However, specific per-unit pricing rates for overages on paid plans are not published. Source: https://posthog.com/pricing

Source
PostHog: When does PostHog provide priority support on paid plans?

PostHog provides email or Slack support for accounts exceeding $2,000/month on pay-as-you-go plans. Specific response times and support SLAs are not detailed on their pricing page. Source: https://posthog.com/pricing

Source
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