Lago vs Paddle: Which is right for you? (1970)
TL;DR
- Choose Lago if keeping fees low matters most.
- Choose Paddle if you want global taxes and compliance handled for you.
- Both work for: saas.
Lago
Self-hosted: free. Cloud: from $100/month
Open source Stripe Billing alternative with powerful metering and usage-based pricing. Self-hostable (free) or cloud. Built for AI apps and SaaS with complex pricing models.
Paddle
5% + $0.50 per transaction
Merchant of Record for SaaS. Handles global VAT and tax remittance across 190+ countries.
Pricing comparison
Feature comparison
Best for
Lago is best for SaaS, AI products, Usage-based pricing, open source, developers, self hosted. Paddle is best for SaaS, B2B, global, Teams scaling up, web, Usage-based billing.
FAQ
Is Lago better than Paddle?
Neither is universally better. Lago is the right pick if keeping fees low matters most; Paddle wins if you want global taxes and compliance handled for you.
Which is cheaper, Lago or Paddle?
Lago ranks higher on fee competitiveness (5/5). Lago pricing: Self-hosted: free. Cloud: from $100/month. Paddle pricing: 5% + $0.50 per transaction.
Can I switch from Lago to Paddle?
Yes — most subscription and billing tools support migration via CSV import or API. Expect to reconfigure webhooks, paywalls, and entitlements. Check both vendors' migration docs before committing.
Does Lago handle sales tax?
No. Lago does not handle tax registrations — you handle those yourself or via a separate tool.
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