Lago vs Stripe Billing: Which is right for you? (1970)
TL;DR
- Choose Lago if keeping fees low matters most.
- Choose Stripe Billing if paywall conversion optimization is the priority.
- Both work for: saas, ai_apps, usage_based, 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.
Stripe Billing
0.5–0.8% on top of standard Stripe fees. You handle taxes.
Maximum flexibility and lowest fees at scale. You own tax compliance. Best for technical teams building complex billing.
Pricing comparison
Feature comparison
Best for
Lago is best for SaaS, AI products, Usage-based pricing, open source, developers, self hosted. Stripe Billing is best for SaaS, B2B, developers, Enterprise, AI products, Usage-based pricing.
FAQ
Is Lago better than Stripe Billing?
Neither is universally better. Lago is the right pick if keeping fees low matters most; Stripe Billing wins if paywall conversion optimization is the priority.
Which is cheaper, Lago or Stripe Billing?
Lago ranks higher on fee competitiveness (5/5). Lago pricing: Self-hosted: free. Cloud: from $100/month. Stripe Billing pricing: 0.5–0.8% on top of standard Stripe fees. You handle taxes..
Can I switch from Lago to Stripe Billing?
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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