Definition
Usage-based pricing charges for what you actually consume - API calls, storage, compute, or tokens - rather than a flat licence.
Consumption pricing scales with value but makes spend hard to forecast and easy to overrun. Insist on real-time usage visibility, alerting, and a spend ceiling with auto-pause so a runaway workload can't become a runaway bill.
Go deeperSoftware total cost of ownership: the hidden costsRelated terms
Benchside turns usage-based pricing into the exact questions, exclusions, and lock-in math for your specific vendor - your first project is free.