---
title: Hybrid: Subscription with Overages
slug: hybrid-subscription-with-overages
docTags: 
createdAt: 2026-05-01T18:47:19.614Z
---

This guide explains how to implement a **hybrid pricing model**:

- A **monthly subscription fee**
- **Included usage** for specific features
- **Overage charges** when usage exceeds those limits

This is one of the most common pricing models used in SaaS and usage-based products.

## The Scenario

You are building a **voice and media processing platform**.

Your pricing model:

**$199/month includes:**

- 1,000 audio processing minutes
- 500 transcription minutes

**Overages:**

- $0.05 per additional audio minute
- $0.08 per additional transcription minute

## Core Concept

:::BlockQuote
Subscription Fee  
\+ Included Usage (per meter)  
\+ Overage Charges (same meters)  
→ Final Invoice
:::

The key idea:

Included usage and overage charges are defined on the **same meter**.

There is no separate system for overages. Once included units are consumed, the same meter continues billing at the defined rate.

## Step 1: Define What You Want to Measure

Start by identifying the usage you want to track.

In this example:

- **Audio Minutes**
- **Transcription Minutes**

Each of these becomes a **meter**.

### Where to Configure

- Go to **Meters**
- Create one meter per usage type

### What Matters

- Each meter represents something you want to:
  - include in the subscription
  - charge overages for

You can optionally add dimensions for analytics or cost tracking, but they are not required for this billing model.

## Step 2: Create a Pricing Plan

### Where to Configure

- Go to **Pricing**
- Create a new pricing plan

### What You Define

- Plan name (e.g., Voice Platform - Pro Plan)
- Billing period (typically monthly)

## Step 3: Add the Subscription Fee

This is the base recurring charge.

### Where to Configure

- Add a **Subscription** rate (previously called flat rate)

### What You Define

- A label (e.g., Pro Plan Subscription)
- A monthly price (e.g., $199)
- Billing timing: **Beginning of billing period**

This ensures the subscription fee is charged at the start of each cycle.

## Step 4: Define Included Usage and Overage Pricing

For each meter, you will configure:

- A **per-unit rate**
- A number of **included units**

### Where to Configure

- Add a **Usage-Based** rate for each meter

### Example Configuration

**Audio Minutes**

- Meter: Audio Minutes
- Rate Model: Per Unit
- Rate: $0.05 per minute
- Included Units: 1,000

**Transcription Minutes**

- Meter: Transcription Minutes
- Rate Model: Per Unit
- Rate: $0.08 per minute
- Included Units: 500

## How This Works

For each meter:

1. Usage is tracked over the billing period
2. Included units are applied first
3. Any usage beyond that is billed at the defined rate

There is no additional configuration required for overages.

## Step 5: Assign the Plan to a Customer

### Where to Configure

- Go to **Customers**
- Select a customer
- Assign the pricing plan

Once assigned, all usage tied to that customer will be evaluated against this plan.

## Step 6: Sending Usage (Conceptual)

Usage is sent to the meter over time.

If you want to test this manually:

- Open a meter
- Use **Event Upload**
- Enter:
  - Customer
  - Usage value (e.g., minutes)
- Ingest the event

In production, this would typically be done via API.

## Example Outcome

Assume a customer uses:

- 1,200 audio minutes
- 600 transcription minutes

### Billing Calculation

**Subscription**

- $199 base fee

**Audio Minutes**

- 1,000 included
- 200 overage × $0.05 = $10

**Transcription Minutes**

- 500 included
- 100 overage × $0.08 = $8

### Total

:::BlockQuote
$199 + $10 + $8 = $217
:::

## Important Notes

- Included usage is always tied to the same meter as overages
- You can define multiple meters within a single plan
- This model works with simple or complex usage types
- You can extend this with:
  - tiered pricing
  - dimensional pricing
  - discounts

## Why This Model Is Used

This pricing model balances:

- **Predictability** → subscription fee
- **Flexibility** → usage-based overages
- **Scalability** → revenue grows with usage

It is widely used because it aligns pricing with both **baseline value** and **actual consumption**.

## Related Concepts

- For dimensional pricing (e.g., model-based pricing), see the LLM usage guide
- For internal cost tracking and attribution, see:
  [Workloads](docId\:XToRHVsoI2AOK1BZPwfDU)

This pattern is foundational. Once understood, it can be adapted to almost any usage-based product.