Can I combine subscriptions with usage-based pricing?

Hybrid Subscription + Usage Billing

Yes. Lava supports hybrid billing models that combine a recurring subscription with usage-based overages — a common pattern for AI products.

How it works

1. Set up subscription tiers. Define plans with a monthly fee and an included credit allowance (e.g., "Pro plan: $99/month with $80 in AI credits").
2. Credits are issued each cycle. At the start of each billing period, the included credits are added to the customer's wallet.
3. Usage draws from credits first. API calls deduct from the included credits.
4. Overages billed from wallet. Once included credits are used, additional usage draws from the customer's pre-funded wallet balance.

Common patterns

• Freemium + pay-as-you-go: Free tier with small credit allowance; usage beyond that requires wallet funding.
• Tiered plans: Basic ($29 + $20 credits), Pro ($99 + $80 credits), Enterprise (custom).
• Pure overage model: Subscription grants a base allowance; any overage is charged at a per-unit rate from the wallet.

Rollover options

You can configure whether unused subscription credits roll over to the next period or expire. This gives you flexibility to match your pricing strategy.

Why hybrid models work for AI products

AI usage is inherently variable. A pure subscription can leave users overpaying for unused capacity, while pure usage-based pricing makes costs unpredictable. The hybrid model gives customers a predictable base cost with the flexibility to scale up when needed.