Metered Billing vs. Flat-rate Billing

Metered billing charges users based on consumption, while flat-rate billing is a fixed recurring cost.

What is the difference between Metered Billing and Flat-rate Billing?

Metered billing calculates charges based on resource usage, whereas flat-rate billing charges a fixed amount regardless of usage.

Both billing models have advantages and trade-offs.

Key differences include:

  • Metered billing adjusts costs dynamically based on usage
  • Flat-rate billing provides predictable, fixed costs
  • SaaS and cloud providers often combine both methods

    • Choosing the right model depends on business needs and customer expectations.

    Related terms
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