Lago vs Polar: Which is right for you? (1970)
TL;DR
- Choose Lago if you need advanced billing (usage, dunning, entitlements).
- Choose Polar if you want global taxes and compliance handled for you.
- Both work for: open_source, developers.
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.
Polar
4% + $0.40 per transaction (lowest MoR fees on the market)
Lowest MoR fees on the market (4% + $0.40). Open source, built for developers and OSS projects.
Pricing comparison
Feature comparison
Best for
Lago is best for SaaS, AI products, Usage-based pricing, open source, developers, self hosted. Polar is best for indie dev, open source, developers, Digital products, SaaS, web.
FAQ
Is Lago better than Polar?
Neither is universally better. Lago is the right pick if you need advanced billing (usage, dunning, entitlements); Polar wins if you want global taxes and compliance handled for you.
Which is cheaper, Lago or Polar?
Lago ranks higher on fee competitiveness (5/5). Lago pricing: Self-hosted: free. Cloud: from $100/month. Polar pricing: 4% + $0.40 per transaction (lowest MoR fees on the market).
Can I switch from Lago to Polar?
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.
Not sure which tool fits your project?
Answer 3 questions and get a personalized monetization stack recommendation.
Start the wizard→