Lago open source vs Lago Premium: when the free edition is enough
The free edition of Lago can carry your billing if the features you need are the fundamental ones. Lago's FAQ describes a forever-free open-source edition with fundamental billing features, and says Enterprise plans add premium features on top. So the decision does not turn on whether to pay, but on whether your business needs a premium feature that the free edition does not cover. Start by listing the billing behaviors your finance team already performs by hand, then check each one against the free edition before you assume you need to pay.
Three triggers come up most often. The first is dunning, the retry and reminder steps that run after a failed payment. The second is progressive billing, where an invoice is raised as usage crosses thresholds during a period rather than at period end. The third is tax and CRM or accounting sync, which covers calculating tax on invoices and keeping NetSuite, Xero, Salesforce or HubSpot records aligned. The supplied facts do not itemize which of these sit in Premium, so ask Lago to confirm in writing which named features are in the free edition and which require an Enterprise plan, and get the answer for the exact integrations you use.
Also confirm the costs that exist either way. The Lago platform is AGPLv3, and a free edition still needs a separate payment processor such as Stripe, Adyen or GoCardless, along with the services that run it: PostgreSQL, Redis, and the API and worker processes described in the Lago self-hosted Docker guide. If you self-host, your team carries upgrades and version pinning under either edition. If a premium feature is required, ask whether it can run self-hosted or only in Lago Cloud, because that changes who operates the platform and where your billing data sits.
Lago open source features vs Premium features, by billing need
This table compares the free AGPL-3.0 Lago edition with Premium (Enterprise plans) across the billing needs that usually decide the edition. Only metering, invoicing and self-hosting are described from documented facts, so treat the other rows as questions to confirm with Lago in writing before you rely on them.
| Capability | Free open-source edition | Premium (Enterprise plans) |
|---|---|---|
| Metering and usage events | Documented as core platform function; self-hosted under AGPL-3.0 | Confirm in writing whether Premium adds metering features or limits beyond the core |
| Plans and pricing models | Includes fundamental billing features; confirm which pricing models are in the free edition | Enterprise plans add premium features; confirm which pricing models are Premium-only |
| Invoicing | Platform produces invoices; PDF generation runs through Gotenberg in Docker Compose | Confirm in writing any differences in invoice templates, numbering or customization |
| Payment gateway connection | Stripe, Adyen and GoCardless named as supported providers; you still need a processor account | Same providers named; confirm whether gateway connectors differ by edition |
| Dunning | Confirm in writing whether automated dunning is included | Confirm in writing whether dunning is an Enterprise feature |
| Progressive billing | Confirm in writing whether progressive billing is included | Confirm in writing whether progressive billing is an Enterprise feature |
| Tax calculation | Confirm in writing whether tax calculation is included and which tax sources it uses | Confirm in writing whether tax calculation is an Enterprise feature |
| NetSuite, Xero, Salesforce and HubSpot integrations | Listed in the README; confirm in writing which edition includes each integration | Listed in the README; confirm in writing which edition includes each integration |
| Self-hosted versus Lago Cloud | Self-hosted only; you operate the API, workers, PostgreSQL, Redis and Gotenberg | Available self-hosted or in Lago Cloud; confirm what the hosted service includes and its terms |
What AGPLv3, the MIT SDKs and Enterprise terms mean for your team
The free edition and Premium sit on different license and support footing, and the terms decide who carries legal, security and upgrade risk. Read each card against your own deployment model, then get the Enterprise terms in writing before you commit.
AGPLv3 platform license
The Lago platform is licensed under AGPLv3. If you modify Lago and make it available to users over a network, the AGPL can require you to offer those users the corresponding source of your modified version. Internal use without modification carries a lighter obligation, but a customer-facing billing portal built on a changed fork may not be internal use. Have legal counsel map the obligation against your own deployment and any custom code before go-live.
MIT-licensed SDKs and MCP server
The agent SDKs and the MCP server are MIT licensed and live in separate repositories from the AGPLv3 platform. That split matters because your application code that calls these SDKs is not automatically pulled under the AGPL. Confirm the license of each repository you pull into your build, and keep platform changes and client integrations in separate codebases so the license boundary stays clear during audits.
Support in the free edition
The free open-source edition covers fundamental billing features, but support is not part of it unless your vendor confirms otherwise in writing. Your team would then rely on community channels and internal staff for incidents, security fixes and upgrade questions. Ask DeployOpen or Lago directly what support, if any, accompanies the free edition, and plan who owns on-call response for billing outages.
Enterprise plan terms
Lago's FAQ describes Enterprise plans that add premium features. The license terms, support tiers, response commitments and any service level terms for those plans are set in the contract, not in the README. Request the written license grant, the support scope, escalation paths and the SLA language before you size the project, and confirm whether Enterprise terms cover self-hosted deployments, Lago Cloud or both.
Frequent release cadence
Lago ships often. v1.54.0 was released on October 6, 2026, and v1.55.0 followed on October 7, 2026. Frequent releases bring fixes quickly but also mean your upgrade testing, change control and rollback plan must keep pace. Build a recurring upgrade window and a staging environment that mirrors production, and decide in advance who approves each version bump.
Pin the tagged version
The self-hosting docs recommend pinning the last tagged version rather than tracking the latest image tag. Pinning gives you a reproducible deployment and a defined point for security review. It also means you own the decision to move forward, so schedule reviews of each tagged release and record which version runs in each environment.
Where dunning and progressive billing change the build
Dunning and progressive billing are where the free edition and Premium most often diverge in practice, and the right answer depends on your business model. Dunning, the retry and recovery of failed payments, matters most for subscription businesses with many card renewals. Progressive billing, which invoices usage or commitments mid-period once a threshold is crossed, matters most for usage-heavy products with prepaid commitments or spend caps. A business that bills one fixed monthly plan through an invoice may never need either, while an API or AI product with variable consumption may need both on day one. Map your revenue model first, then decide which of these behaviors your customers will actually notice.
Lago calculates what to charge and when, then hands the payment to a gateway. The README names Stripe, Adyen and GoCardless as supported providers, and Lago's FAQ states that a separate payment processor is required. That means your recovery results depend on two layers: Lago's billing logic and the retry features of the gateway you connect. Before you commit, confirm with the gateway which retry schedules, smart retry options and failure notifications it provides, and confirm how Lago reports payment status back into the invoice lifecycle in your configuration.
For each paid feature you are considering, check whether it is delivered in the self-hosted Premium deployment, in Lago Cloud, or in both. Do not assume parity between the two. Ask Lago for written confirmation of the feature set per deployment model, then test it against a sample subscription (illustrative: a monthly plan with a usage threshold and a card that fails on renewal) in a non-production environment. Record what the customer sees, what the invoice shows, and what your gateway logs. That test result, not the marketing page, should decide whether Premium is worth its cost for your build.
Self-hosted Premium or Lago Cloud: which deployment changes the edition math
Running Premium yourself keeps the deployment inside your cloud account, data center or VPC, so your team owns every service the billing engine depends on. The Docker Compose layout is the starting point, and it already contains several moving parts. Plan for the following operating work from the first day.
- Front end and API: the user interface and the API that receive plans, customers and usage events, so they need availability planning and patching.
- API worker and clock worker: background processing for jobs and time-based work, so a stalled worker can delay downstream billing activity.
- PostgreSQL and Redis: PostgreSQL holds application data and Redis serves as the job queue, so you own backups, upgrades and capacity for both.
- Gotenberg: PDF generation for documents, which needs its own health checks and version tracking.
- Optional ClickHouse: disabled by default and intended for high-volume events, so enabling it adds a separate store to run.
Larger deployments are pointed toward Helm charts and dedicated workers, which moves more of the work onto your Kubernetes platform. Pin the last tagged version and avoid the latest image tag so that upgrades happen on purpose. Confirm with Lago how each Premium feature is delivered in a self-hosted installation before you size the platform.
Lago Cloud moves hosting and day-to-day operation of the Lago services to the vendor, so your team no longer runs the API, workers, databases or queue directly. That changes who is on call for the billing platform, but it does not remove the work of connecting payments, tax and accounting. Several Premium questions also depend on the hosting model, so confirm them before you assume parity with a self-hosted install.
- Operations handed over: hosting, service upgrades and the infrastructure listed in the self-hosted tab become the vendor's responsibility under the agreement, so ask which upgrade windows apply.
- Feature availability: confirm which Premium features are included in Lago Cloud and whether any differ from self-hosted Premium.
- Data residency: confirm the regions available and where customer, usage and invoice data is stored, especially if you have sovereignty obligations.
- Work that stays with you: payment processor accounts (Stripe, Adyen and GoCardless are named supported providers), tax setup and ERP or CRM connections still need your team's configuration and testing.
- Recovery and exit: request written terms for backups, recovery objectives, support hours and how you export your data if you leave.
Ask the vendor for these terms in writing and compare each one against the operating tasks in the self-hosted tab.
Deployment usually changes total cost of ownership more than the feature list does, because the same Premium features carry different operating loads depending on where they run. Costs fall into one-time work, such as installation, integration build and data migration, and recurring work, such as hosting, upgrades, monitoring and on-call coverage. Your edition decision works best when it starts from that map of tasks.
- Recurring work: upgrades, patching, database maintenance and on-call coverage repeat over time and grow with the number of services you run.
- One-time work: installation, payment and accounting integrations and data migration happen once, although changes to them recur.
- Volume drives scale: event volume determines whether the default PostgreSQL store is enough or whether ClickHouse and dedicated workers enter the plan.
- Staffing: who carries these tasks is often the largest variable, since a platform team and an application team handle the same services differently.
- Exit path: moving between self-hosted and Cloud requires a data export and rewired integrations, so confirm the export format early.
For more detail on the operating trade-offs, read the separate Lago Cloud versus self-hosted Lago comparison and build one shared service list for both quotes.
Tax, CRM and accounting integrations: what to verify before you buy
Confirm each integration you need before you assume it is free. Lago's README lists integrations with NetSuite, Xero, Salesforce and HubSpot, and tax calculation is a separate question on top of those connectors. The supplied facts do not say which of these are included in the free AGPL-3.0 edition and which depend on Premium, whether self-hosted or in Lago Cloud. Treat every item as unverified until Lago confirms it in writing, and check tax calculation the same way, because a billing engine that calculates charges still depends on the tax rules you configure and the jurisdictions you bill into.
Integration work is mostly data mapping, not connector installation. Your team must map Lago customers to the matching records in the CRM or ledger, map plans and billable metrics to product and revenue accounts, and decide how each invoice field (tax lines, currency, due dates, credit notes) lands in the target system. Tax needs its own rules per jurisdiction, including which rate applies, who holds the registration, and how exemptions are recorded. Each of these mappings is a decision with an owner, and each one should be documented before go-live.
Test reconciliation before you trust the flow. Run a set of test invoices through the full path, from usage events to Lago invoice to CRM or accounting record, and confirm that totals, tax and balances match the general ledger for the period. Ask Lago for a written integration matrix that states, for each connector, the edition or plan it requires, the sync direction, and the fields it supports, along with a test invoice flow you can run in your own sandbox. If Lago cannot provide either, plan the integration build as custom work and price it accordingly.
Lago Premium cost and what drives it
This table sets out who gets paid for each cost component when running Lago's free AGPL-3.0 edition versus Premium or Enterprise, and whether each cost recurs. No Premium prices are published in the supplied facts, so request an Enterprise quote in writing and compare line items against the scope you agree.
| Cost component | Free edition | Premium or Enterprise | What drives it up or down |
|---|---|---|---|
| License or subscription fee | None. The platform is AGPL-3.0 and the open-source edition is described as forever free. | Enterprise plans add premium features. Pricing is not published, so request a written quote covering self-hosted or Lago Cloud delivery. | Feature list you need, deployment model and support terms. Ask which premium features are included and whether pricing recurs annually or monthly. |
| Infrastructure for self-hosting | Your own compute and PostgreSQL, plus Redis as the job queue, Gotenberg for PDFs and the API, worker and clock services. | Same infrastructure footprint when self-hosted. Lago Cloud moves hosting into the vendor's account. | Event volume, worker count and whether you enable the optional ClickHouse store. Recurring cloud spend in your own accounts. |
| Payment gateway fees | Paid to Stripe, Adyen or GoCardless directly on each transaction. Lago needs a separate processor. | Same gateway fees. Premium does not replace the processor. | Transaction count, payment method mix and gateway contract terms. Confirm the gateway you choose before modeling this line. |
| Implementation and configuration effort | Internal or partner time to deploy, pin a tagged version and configure plans, metrics and invoicing. | Deployment effort is similar, but premium features such as dunning or progressive billing add setup scope. | Number of plans, pricing models and dunning rules. Fixed scope agreed in writing keeps this bounded. |
| Integration build and testing | Build and test any connection to NetSuite, Xero, Salesforce, HubSpot or your ledger yourself. | Premium integrations may reduce custom build work if included in your plan. Confirm the exact list in writing. | Number of systems, data mapping complexity and tax rules. Ask the vendor which integrations are included. |
| Ongoing upgrades and support | Your team tracks releases and upgrades. Lago recommends pinning the last tagged version over the latest image. | Support level depends on the Enterprise agreement. Confirm response expectations and upgrade assistance in writing. | Release cadence, number of environments and how often you upgrade. Retainers can cover recurring work. |
| One-time versus recurring | One-time: setup, configuration and integration build. Recurring: infrastructure, gateway fees, upgrades and support time. | One-time: setup and integration. Recurring: Enterprise subscription, infrastructure, gateway fees and support. | Ask the vendor to split quoted fees into one-time and recurring lines so you can compare them with the free edition. |
Moving from the free edition to Premium, and back
This sequence moves a Lago deployment from the free AGPL-3.0 edition to Premium, or back, without losing invoices, customer records or billing history. Each step ends with a written check, so the team can see what changed and what still needs attention.
Confirm the paid features in writing
Before any change, ask Lago in writing which features are included in Premium and which of them your deployment would use: dunning, progressive billing, tax calculation, and the CRM or accounting integrations you rely on. Confirm whether Premium is delivered as a license for your own self-hosted instance, as access to Lago Cloud, or both, and what the commercial terms are for each. Your product owner and finance lead should sign off on this list. The step is complete when the feature list, delivery model and terms are on file and the team has written down which features are actually needed. Lago's general FAQ describes the free edition as covering fundamental billing features and Enterprise plans as adding premium features, so anything beyond that must come from Lago's written answer, not assumptions.
Pin the current tagged version
Record the exact tagged release your deployment runs today and keep it pinned. Lago's self-hosting documentation recommends pinning the last tagged version rather than the latest image tag, so the platform engineer should check the image tags in the Docker Compose or Helm configuration and confirm that none of them float. Store the version, the configuration files and a database backup together in version control or your change system. The step is complete when a restore from that backup onto a clean host has been rehearsed and the running version matches the recorded tag.
Rehearse the change on a non-production copy
Restore the production PostgreSQL data into a non-production environment that mirrors the production services: the front end, API, API worker, clock worker, Redis, and Gotenberg for PDF generation. Load representative subscriptions, plans, usage events and invoices, including those with mid-cycle changes, coupons and failed payments. Apply the target edition or license and run the change exactly as it will run in production. The platform engineer should log every error, configuration difference and manual step. The step is complete when the rehearsal finishes with no unexplained errors and the team has a corrected runbook.
Migrate or enable paid features with a rollback plan
Apply the Premium configuration on the production instance during an agreed change window, one feature at a time where the vendor's guidance allows it. Before starting, write the rollback steps: the pinned version to return to, the backup to restore, and the point after which a rollback would lose data written in the meantime. Set a clear owner for the go or no-go decision. The step is complete when each enabled feature has been checked against the rehearsal results, and the rollback procedure has been reviewed by someone who did not write it.
Reconcile invoices, dunning and tax output
Compare a sample of invoices generated after the change with the same subscriptions priced by the previous edition, or with figures your finance team already trusts. Include a spread of plan types, usage-based charges, prorated periods, tax-exempt customers and accounts in dunning. Check that the payment gateway you use, such as Stripe, Adyen or GoCardless, receives the amounts Lago calculates, since Lago calculates what to charge and when and the gateway collects it. Finance and billing operations should sign the reconciliation. The step is complete when every difference is explained and the sample has been accepted in writing.
Document the change and its boundaries
Record the edition in use, the pinned version, the enabled features, the integrations in use with NetSuite, Xero, Salesforce or HubSpot, the configuration values changed, the backup location, the rollback procedure and the reconciliation sign-off. Store the record where operations, finance and security can all find it. Note which team owns renewals and version decisions for Premium features. The step is complete when the record is reviewed and a named owner has accepted it.
Plan the move back to the free edition
To return to the free edition, first list every Premium feature in use and confirm in writing which of them must be disabled, and what the free edition does with the data those features created. Identify what data and configuration remain: customers, subscriptions, invoices, payment references, and integration settings. Export and back up the database, then repeat the reconciliation sample from the previous steps to confirm that invoice numbers, customer records and payment history stay intact. Confirm the free edition's behavior for any integrations you turn off. The step is complete when the disabled features, retained data and reconciliation results are documented and approved by finance and operations.
Questions buyers ask before choosing Lago Premium
Is the free Lago edition enough for one product with fixed plans?
For one product with a small, stable set of fixed plans, the free AGPL-3.0 edition may cover the core billing need, because Lago's FAQ describes it as including fundamental billing features. Check your requirements against the feature list before deciding. If you need dunning, progressive billing, tax calculation or CRM and accounting sync, confirm with Lago which of these sit in its Enterprise plans. Also remember that a payment processor such as Stripe, Adyen or GoCardless is a separate requirement with its own contract. A simple plan set reduces configuration work, but it does not remove the operating load of running the platform yourself.
What does Lago Premium cost and how do I get a quote?
Lago Premium pricing is not stated in our research, so check Lago's current plan terms directly. DeployOpen does not publish a price list, and a DeployOpen quote follows from a written scope. Cost drivers include the hosting model (self-hosted or Lago Cloud), the number of products and plans, billing volume, and the payment and accounting integrations you need. Lago's license is only one line item. Others include payment gateway fees, the build effort for integrations, your own infrastructure and your team's time. To request a quote, send a written list of features, connected systems, environments and migration needs. Ask Lago and DeployOpen to show which costs are one-time and which recur.
How long does a move to Lago Premium take?
The duration depends on scope and must be agreed in writing before work starts. No timeline is supplied in our research, so treat any figure you hear as unconfirmed. The main variables are the number of integrations (for example NetSuite, Xero, Salesforce or HubSpot), whether you migrate existing subscriptions and invoices, the tax setup, the number of payment gateways, and whether you run Lago in your own VPC or use Lago Cloud. Ask for a written plan with milestones, a test environment where invoices are reconciled before cutover, and a documented rollback path. Ask Lago which onboarding steps its Premium plan includes.
Can my team self-host the free Lago edition without outside help?
Yes, if your team has the skills and capacity to run it. Lago's Docker Compose deployment runs a front end, an API, an API worker, a clock worker, PostgreSQL, Redis and Gotenberg for PDF generation. ClickHouse is optional and disabled by default. Lago's self-hosting docs recommend pinning the last tagged version instead of the latest image tag, and point larger deployments to Helm charts and dedicated workers. Your team then owns backups, monitoring, security patches and upgrades. Outside help is optional. DeployOpen can plan, implement, harden, back up, upgrade and document a self-hosted deployment, and provide ongoing support as a retainer.
What skills does a Lago deployment need?
A Lago deployment needs skills across four areas:
- PostgreSQL: schema management, backup and restore testing, and performance tuning for application data.
- Docker Compose or Helm: container configuration, version pinning, secrets handling, and upgrades for larger clusters with dedicated workers.
- Payment gateway knowledge: webhook handling, retry behavior and reconciliation with Stripe, Adyen or GoCardless.
- Accounting and tax: mapping invoices to ledgers in systems such as NetSuite or Xero and confirming tax rules with your finance and tax advisers.
Redis, a reverse proxy and monitoring also need an owner. Confirm which of these skills sit in your team before choosing between self-hosting and a managed option.
Does the AGPL license affect an internal billing deployment?
AGPL-3.0 is a copyleft license, and its strongest obligations generally apply when you distribute modified versions or make them available to users over a network. An internal deployment used only by your staff may carry different obligations than a customer-facing portal, but whether your use and any changes trigger source release duties is a legal question. Lago's agent SDKs and MCP server are MIT licensed in separate repositories, so their terms differ. Premium is licensed separately, so read its terms too. Consult counsel before you modify Lago or expose it to customers. DeployOpen does not provide legal advice on license obligations.
How does DeployOpen scope and deliver a Lago engagement?
Most DeployOpen engagements are fixed-scope, and the scope, deliverables and timelines are agreed in writing before work starts. A written scope for a Lago engagement typically covers the environments (your cloud account, VPC or data center), the payment gateway and accounting integrations, plan and tax configuration, testing, backup, hardening, documentation and handover. Ongoing support, upgrades and continuous testing are available as retainers. DeployOpen prepares systems and evidence for compliance assessments but does not issue audit reports or certifications, so independent auditors handle that step. Request a quote once your requirements are in writing.
How DeployOpen scopes and delivers Lago work on either edition
DeployOpen plans, implements, integrates, hardens, backs up, upgrades, documents and supports self-hosted open-source platforms inside the client's own infrastructure, so the same method applies whether you run the free AGPL-3.0 Lago or a Premium deployment. We agree scope, deliverables and timelines in writing before work starts.
How we scope
- Written scope states which edition is in use and which premium features, if any, are in the deployment.
- Scope lists the payment gateway, tax and CRM or accounting connectors that must be configured and tested.
- Ask us to name the hosting model, data location and who holds Lago administrator access.
How we build
- We deploy the Docker Compose or Helm topology in your environment, pinned to a tagged release rather than the latest image.
- Configuration covers PostgreSQL, Redis, the API and worker services, and Gotenberg for invoice PDFs.
- Integrations are built and tested against your sandbox accounts before any live billing run.
How we hand over
- Deliverables include architecture notes, runbooks for upgrades and rollback, and a record of configuration decisions.
- Handover covers backup and restore testing for the application database and the event store in use.
- Your team receives a list of edition-specific features, so later decisions about upgrading are documented.
How we support
- Ongoing support, upgrades and continuous testing are available as retainers after handover.
- Retainers can cover version upgrades, dependency reviews and checks after each Lago release.
- Ask for the support hours, response expectations and change process in the written quote.
