# Flexprice Vs. Lago

Lago is a solid open-source billing foundation. But AI companies outgrow it fast. Flexprice gives you the same open-source transparency with enterprise-grade depth on credits, entitlements, contracts, and pricing experimentation.

Powering monetization for

If billing doesn't work, we don't make money. Flexprice lets us focus on the core business instead of building billing as a second product.

### In this section

Introduction

Both Flexprice and Lago are open-source billing platforms. If you are evaluating open-source options, that already puts you ahead of teams locked into closed-source vendors.

Lago handles the fundamentals well. It supports usage-based metering, basic credit wallets, event aggregation, and flexible charge models.

### If you should stick with Lago if:
- Your billing needs are limited to basic usage-based metering with simple aggregation and you do not need advanced credit workflows like promotional conversion rates, per-feature balance alerts, or invoice-backed top-ups
- You do not need parent-child account hierarchy, ramped contracts, or contract amendments with versioning
- You are comfortable with entitlements that are tightly coupled to subscriptions rather than operating as an independent, flexible layer
- You do not need to iterate on pricing frequently or run A/B pricing experiments on live plans without creating new plan versions
- You are fine with building your own customer-facing billing portal since Lago gates theirs behind the premium cloud plan

### Category

#### Lago

Basic Usage-Based Pricing

- ✅ Supports basic usage-based pricing and advanced workflows like hybrid plans, committed usage, outcome-based billing, and multi-metric billing. Built on Go + Kafka, architected for 60K+ events/sec.
- ✅ Supports usage-based billing with metering, aggregations, and flexible charge models. Ruby-based engine handles roughly 15K billing events/sec. Good foundation for standard metering workflows.

Basic Credit-Based Workflows

- ✅ Full credit system with prepaid wallets, recurring grants, rollover logic, real-time wallet sync, and auto top-ups with invoice-backed checkout flow. Multiple credit types supported with configurable expiration and balance tracking.
- ✅ Supports wallets with prepaid credits, recurring top-ups on weekly to yearly schedules, and expiration dates. Up to 5 active wallets per customer.

Advanced Credit Workflows

- ✅ Separate spend vs. top-up conversion rates let you run promotional credit campaigns without distorting revenue accounting.

### Ramped Contracts
- ✅ Native support for ramped contracts. Define custom price timelines that auto-update without manual work. Move customers from pilot to scaled phases with changing prices or minimums over time, zero custom code.

### Quotes and Renewals
- ✅ Built-in quote system with pricing lock-ins, approvals, and automatic sync with billing and revenue workflows.

### Committed Usage and Credit Pooling
- ✅ Define org-level usage commitments with configurable overage factors (1.5x premium, 1.0x flat, 0.8x discount), true-up enforcement, and even windowed commitments (hourly buckets).

### Parent-Child Accounts
- ✅ Supports org-level billing, credit sharing, and unified usage across teams. Ideal for cross-department expansion, reseller models, and multi-region subsidiaries.

### Granular Usage Filtering
- ✅ Supports filtering within usage events. Define pricing per model, token type, or any metadata in a single event stream.

### Feature Entitlements
- ✅ Fully integrated entitlement management as an independent layer. Set plan-based feature limits with usage tracking, reset logic, and real-time enforcement.

### Multi-Pool Credit and Token Infrastructure
- ✅ Purpose-built for AI token economics. Assign dynamic credit values to features based on internal cost metrics.

## Why Teams Choose Flexprice Over Lago
1. Same open-source philosophy, deeper feature set
2. Enterprise contracts without enterprise complexity
3. Pricing iteration built for the speed AI companies need
4. Credit infrastructure built for AI token economics
5. 4x faster event processing on a modern architecture
6. Multi-payment-gateway support for global billing

### Frequently Asked Questions
- What is the difference between Flexprice and Lago?
- Is Flexprice open source like Lago?
- Does Lago support parent-child accounts?
- Can Lago handle credit-based billing for AI companies?
- Does Lago support pricing experimentation?
- Does Lago have a customer portal in the open-source version?
- Is Flexprice faster than Lago for event processing?
- Does Lago support outcome-based billing?

# Launch usage-based billing this week, not next quarter.

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