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Billing mechanics

Meter

The definition of what is measured and how it aggregates: which events count, over what period, summed or maximum or counted.

A meter defines a measurable thing. It names the event to count, the field to aggregate, the aggregation method, and the period over which it resets.

Aggregation is the part that decides the meaning. Summing tokens over a billing period, counting API calls, and taking the maximum concurrent seats in a period are three different products even if the underlying events are identical.

A meter’s aggregation should be fixed at definition and not editable afterwards. Changing it mid-cycle silently changes what a customer is being charged for, and no invoice issued before and after the change can be compared.

Related terms

  • Metered billing Collecting usage events during a period and rating them into invoice lines when the period closes.
  • Usage-based pricing Charging by what the customer consumes rather than by a fixed subscription fee. Also called consumption or metered pricing.
  • Entitlement What a customer is allowed to use because of the plan they are on: which features, and up to what limits.