Businesses love Chargebee as a complete subscription billing software that handles complex models without requiring dedicated teams.
Chargebee offers a tiered pricing structure with a free Starter plan (up to $250K billing), Performance plan at $599/month, and custom Enterprise options, all with potential overage fees of 0.75% on revenue beyond thresholds.
Want to know if these Chargebee costs are justified for your business model? Let’s break down exactly what you’re getting at each price point.
Quick Summary
- Chargebee has a flexible pricing structure and powerful features, with three different plans suitable for businesses at various growth stages.
- With different specifications, Chargebee is adaptable for startups, growing businesses, and enterprise-level organizations of all sizes.
- Agency Handy stands as the best alternative to Chargebee, offering more affordable pricing starting at just $19/month with unlimited clients and subscriptions specifically designed for service businesses.
What is Chargebee?
Chargebee is a subscription billing and revenue management tool that helps you run your business more smoothly. It takes care of everything from when a customer signs up to when they renew, upgrade, or even cancel.
You can use Chargebee to set up recurring payments, manage different pricing plans, offer free trials, or apply discounts. It’s great for both simple and advanced setups, whether you’re charging a flat monthly fee or using a usage-based model.
Chargebee works across industries. Software companies, online learning platforms, eCommerce businesses, and even physical stores offering subscriptions (like coffee shops) use it to handle billing and subscriptions.
Chargebee features include:
- Subscription Lifecycle Management: Create, manage, pause, cancel, and reactivate subscriptions easily.
- Flexible Product Catalog: Support for multiple pricing models, including flat-rate, tiered, usage-based, and hybrid billing
- Global Payment Processing: Integration with over 30 payment gateways and support for multiple currencies
- Customizable Customer Portals: Self-service options for customers to manage their subscriptions
- Comprehensive Analytics: Real-time reporting on key metrics like Monthly Recurring Revenue (MRR) and churn rates
- PCI-Compliant Checkout: Secure payment processing with one-time purchases alongside subscriptions
Chargebee Pricing Plans
Chargebee offers three main pricing tiers: a free Starter Plan for businesses processing under $250K in billing, a Performance Plan at $599/month for up to $100K monthly billing (with 0.75% overage fees), and an Enterprise Plan with custom pricing for larger organizations.
All paid plans require annual commitments, with overage charges applied when exceeding billing thresholds.
Plan | Monthly Cost | Billing Threshold | Overage Fee | Annual Discount |
Starter | Free | First $250K total | 0.75% after threshold | N/A |
Performance | $599/month | Up to $100K monthly | 0.75% after threshold | Available with upfront payment |
Enterprise | Custom pricing | Negotiable | Negotiable | Available |
How is Chargebee Cost Calculated? Factors Affecting The Pricing
Chargebee’s pricing structure is primarily revenue-based, with costs tied directly to your business growth. Several factors affect what you’ll ultimately pay:
Revenue Thresholds and Overage Fees:
Once you exceed your plan’s billing threshold ($250K total for Starter, $100K monthly for Performance), you’ll pay a 0.75% fee on additional revenue. For example, processing $120K in a month on the Performance plan would add $150 in overage fees ($20K × 0.75%).
Billing Frequency:
While Chargebee requires annual commitments for paid plans, you can choose between monthly payments or annual upfront payments with a discount.
Add-on Services: Several features require additional payments:
- Integration costs (NetSuite: $100+/month, Salesforce: $125/month)
- Tax compliance tools through Avalara (separate contract)
- Custom domain setups and specialized reporting
Pricing Model Complexity: Chargebee supports multiple pricing approaches (flat fee, usage-based, tiered, etc.), but more complex models may require higher-tier plans or custom configurations.
Revenue Fluctuations: Businesses with seasonal spikes may find themselves paying higher overage fees during peak periods, as the pricing model doesn’t easily accommodate temporary volume increases without upgrading.
Chargebee Starter Plan (Free)
Best Suited For: Early-stage startups and small businesses just beginning to explore subscription management
Chargebee’s Starter Plan costs nothing for businesses processing up to $100,000 in annual revenue (as of May 2024).
After reaching this threshold, a 0.75% fee applies to additional revenue. This plan has no annual contract requirement and can be used on a month-to-month basis.
Chargebee’s Starter Plan is designed for businesses in their early growth phases. It provides essential subscription management tools without upfront costs, making it an accessible entry point for new companies.
The plan includes fundamental features like automated invoicing, basic subscription lifecycle management, and simple payment processing capabilities.
Key Features:
- Basic subscription management
- Automated recurring billing
- Standard invoicing functionality
- Credit notes for refunds and adjustments
- Calendar billing alignment
- Payment gateway integrations
- Basic dunning management
Pros:
- Zero cost until reaching revenue threshold
- No annual commitment required
- Essential subscription management tools included
- Customer portal functionality
- Credit notes for handling refunds
Cons:
- Limited to only 3 user accounts
- No advanced invoicing capabilities
- Lacks chargeback automation
- Missing team collaboration features
Chargebee Performance Plan
Monthly Cost: $599 per month with annual commitment required
- Annual Billing: Annual commitment required, with discounts available for upfront payment
- Monthly Billing: Billed monthly despite annual contract requirement
- Billing Threshold: Covers up to $100,000 in monthly revenue, with 0.75% overage fee on additional billing
Key Features: Advanced subscription management, multiple payment gateways, smart dunning, quotes, chargeback automation, offline checkout
Best For: Growing businesses with established subscription models seeking to scale their revenue operations
This plan works best for businesses with complex billing needs. It’s great if you use metered billing or need to automate manual tasks. You get everything from the Starter Plan plus extra features.
While the plan includes access to a customer self-service portal, there’s no breakdown for client portal pricing. So, it’s hard to measure how much of your monthly fee actually goes toward portal functionality.
Features Include:
- Advanced subscription management tools
- Multiple payment gateway integrations
- Smart dunning for failed payment recovery
- Customer self-service portal
- Quote generation and management
- Chargeback automation
- Offline payment support
- Advanced invoicing with consolidation options
- Multi-currency support (unlimited currencies)
- Team collaboration with role-based access control
- Priority support with phone assistance
Pros:
- Comprehensive billing automation reduces manual work
- Smart dunning improves collection rates for failed payments
- Customer portal provides self-service options reducing support tickets
- Advanced reporting offers deeper business insights
- Multiple payment method support improves conversion rates
Cons:
- Significant price jump from the free Starter plan
- Annual commitment required with limited flexibility
- 0.75% overage fee can become expensive for growing businesses
- No custom domain support for white-labeling
Chargebee Enterprise Plan
Monthly Cost: Custom pricing based on business needs
- Annual Billing: Required, with volume discounts available
- Monthly Billing: Available despite annual contract requirement
- Billing Threshold: Negotiable based on company size and needs
Key Features: Multi-entity management, advanced analytics, custom domain support, dedicated account manager
Best For: Large businesses and enterprises with complex billing requirements across multiple products or business units
The Enterprise Plan is Chargebee’s top-tier offering. It’s built for larger companies with complex needs.
Enterprise customers get everything in the Performance Plan plus special features for large organizations. These tools help manage billing across different business units or geographic regions. You’ll also get dedicated support from Chargebee’s team.
Features Include:
- Multi-entity management
- Custom domain for white-labeling
- Dedicated account manager
- Advanced revenue recognition
- Enterprise-grade security controls
- Custom reporting and analytics
- Advanced API support
- Sandbox environments for testing
- Specialized onboarding program
Pros:
- Completely customizable to fit complex business needs
- Dedicated support ensures quick problem resolution
- White-labeling creates seamless customer experience
- Multi-entity support handles complex organizational structures
- Advanced security meets enterprise requirements
- Custom reporting delivers exactly the insights you need
- Unlimited user seats for growing teams
Cons:
- Lack of transparent pricing makes budgeting difficult
- Potentially high cost commitment
- Annual contract limits flexibility
- Complex implementation process
- Steep learning curve for team members
- May include features you don’t actually need
- Customizations can create dependency on Chargebee
Chargebee Additional (Hidden) Cost and Fees
Here are some additional fees that you need to know about;
- Integration Costs: NetSuite integration: $100+ per month, Salesforce integration: $125 per month and other enterprise integrations may incur additional fees.
- Tax Automation Tools: Avalara tax compliance requires a separate contract with additional costs.
- Payment Processing Fees: All payment gateway fees (like Stripe’s 2.9% + $0.30 per transaction) apply separately from Chargebee fees.
- Implementation Costs: Complex setup requirements may necessitate professional services. Custom configurations often require support assistance.
- Overage Charges: The 0.75% fee on billing beyond plan thresholds can significantly increase costs for growing businesses. Seasonal or unexpected revenue spikes can trigger these fees even temporarily.
Is Chargebee Worth The Price?
Chargebee offers good value for certain businesses. The free Starter plan works well for new companies under $250K in billing. The Performance plan ($599/month) includes helpful features for growing businesses that need automation.
However, the pricing has clear drawbacks. The jump from free to $599 is steep for small businesses. The 0.75% overage fee means costs increase as you grow, which can become expensive.
Annual contracts reduce flexibility, and seasonal businesses may face unexpected charges during busy periods.
For simple subscription needs, Chargebee alternatives like Stripe Billing offer better value. As one Chargebee review notes, “Chargebee is worth it if you’re running a big business with MRR in the tens of thousands. However, if your business is still new… there are better alternatives out there.”
Chargebee makes most sense for mid-market businesses with complex subscription models. For price-sensitive small companies or large enterprises, exploring other options may provide better value.
Final Thoughts
Chargebee pricing offers strong options for subscription businesses at various growth stages. While its features are comprehensive, costs rise as your revenue grows.
For service businesses looking for predictable pricing without overage fees, Agency Handy provides a more affordable, specialized alternative with all the essential tools you need.
FAQs
Does Chargebee offer a free trial?
Yes, Chargebee offers a free Starter Plan rather than a traditional time-limited trial. You can use basic features until you reach $250,000 in billing with no time restriction.
Is Chargebee secure?
Yes, Chargebee is secure with PCI DSS Level 1 compliance. They use full HTTPS encryption for all data and don’t store complete credit card information in their system.
Does Chargebee offer discounts?
Yes, Chargebee offers discounts for annual payments. While not explicitly advertising standard discount programs, they provide custom pricing options when you contact their sales team.
Is Chargebee good for small businesses?
Yes, Chargebee works well for small businesses with subscription models. The free Starter Plan lets you process up to $250K in billing before paying fees, which helps new companies manage cash flow.