# Metered Billing

> Metered billing is a usage-based pricing model where charges are calculated based on measured consumption of specific resources, reported at the end of each billing period.

- **URL**: https://dodopayments.com/glossary/metered-billing

---

## What is Metered Billing?

Metered billing is a pricing model where customers are charged based on their actual consumption of a service, measured in specific units like minutes, gigabytes, or API calls. The total amount due is calculated at the end of the billing period based on the recorded usage.

### Why It Matters

- It provides a highly transparent "pay-as-you-go" experience for the customer.

- It allows businesses to scale their revenue automatically as their customers grow and use the product more.

- It is ideal for infrastructure and platform services where the cost to the provider is directly tied to usage.

- It reduces the risk of overcharging customers who have low or fluctuating needs.

## Learn More

- [Usage-based billing fundamentals for SaaS](https://dodopayments.com/blogs/usage-based-billing-saas)
- [How to implement usage-based billing](https://dodopayments.com/blogs/implement-usage-based-billing)
- [A practical guide to metered pricing](https://dodopayments.com/blogs/metered-pricing-guide)