Subscription Billing
The most concrete split between Iugu and Lago is the pricing model: Iugu runs on usage-based pricing, while Lago uses freemium with paid plans from $1. That shapes how predictable your monthly spend is and how much of the cost sits in infrastructure versus per-seat or per-event fees. Beyond the headline, Iugu carries medium lock-in (brazil billing platform) and usage-based pricing; Lago carries low lock-in (open-source billing, self-hostable) and freemium with paid plans from $1. Iugu is a fit when you are brazilian saas, marketplaces, and fintechs needing pix, boleto, and nf-e compliance. Lago is a fit when you are saas. The honest trade-off: Iugu is explicitly not for global-first saas or companies without significant brazilian revenue exposure; Lago is explicitly not for simple projects. On the product side, Iugu is described as Brazilian billing and payments platform for subscriptions, recurring charges, and marketplaces with REST API, and Lago is described as Open-source metering and usage-based billing API supporting flat, tiered, volume, and percentage pricing models.
Quick take
Iugu is for brazilian saas, marketplaces, and fintechs needing pix, boleto, and nf-e compliance; Lago is for saas; decide on pricing model.