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Premium feature ✨: only users with a premium license can define a charge spending minimum. Please contact us to get access to Lago Cloud and Lago Self-Hosted Premium.
Spending minimum concerns only usage-based charges which billing time is in arrears since these are always paid at the end of the billing period based on the amount of consumption that occurred. This feature allows you to define a spending minimum that a customer needs to commit to. If your customer spends less than the committed amount, you will charge a true-up fee equal to the difference between the commitment and the actual usage. Please note that this true-up fee is tied to the initial charge but will appear as a separate line item in an invoice or in a credit note. Spending minimums and true-up fees are always prorated based on the number of days used in the subscription. This ensures fairness if your customer signs up at the end of the month, upgrades to a new plan, or terminates an ongoing subscription before the end of the period. In the example below, a customer is billed based on Monthly Tracked Users (MTU), with a standard pricing of $0.010 per tracked users. However, the customer is committed to a spending minimum of $100. If the total consumption of MTUs for the period is $50, a true-up fee of $50 will be charged. To define a charge spending minimum:
  1. Go to a Plan;
  2. Add a usage-based charge;
  3. Define a price model;
  4. Click the add a spending minimum button; and
  5. Define a spending minimum amount.