Usage-based pricing

Usage-based pricing charges customers according to how much of a product they consume, such as API calls, gigabytes or transactions, instead of a flat fee. Revenue scales with customer value, but it is less predictable than seat or plan pricing, so most businesses combine usage with a committed base.

How to read it

It needs reliable metering, a clear billing timing rule (in advance or in arrears) and customer-visible usage so invoices are never a surprise. Forecasting works from commitments plus a modelled usage range.

In Revvly

• Docs: guides metered usage
• Docs: guides pricing models

Further reading

• Usage-based pricing without the billing chaos.
• Implementing usage-based pricing: what it actually takes without an engineering team

Related terms

• Hybrid pricing
• Tiered pricing
• Seat-based pricing