---
title: "Pay-As-You-Go Pricing Model"
url: https://docs.catalyst.zoho.com/en/deployment-and-billing/billing/pay-as-you-go-model/
description: "The Billing documentation covers information on the payment models and plans available in Catalyst, as well as steps to set up your payment method, access billing and transaction reports, configure budgets, and more."
last_updated: 2025-08-28T06:31:44Z
service: All Services
type: general
---

# The Pay-As-You-Go Pricing Model

The pay-as-you-go pricing model requires users to pay only for the resources they consume, post the consumption. This is a postpaid model in which the price is calculated for each billable resource usage, and the bill is generated on a monthly basis. 

### Benefits

* The pay-as-you-go model is highly cost effective and efficient, enabling you to only pay for the resources you consume. There are no overhead or subscription charges levied for any resource.

* This model saves you from implementing a trial and error method of subscribing to plans or purchasing features beforehand, when you cannot foresee your requirements in advance. 

* You can avail this option if your usage is on a small scale, such as building independent projects or freelancing, or if you prefer only to pay for what you use without prior commitments.

* You can highly benefit from the [free tier usage allowance](https://docs.catalyst.zoho.com/en/deployment-and-billing/billing/free-tier/) if you opt for the pay-as-you-go model. If you don't exceed the hard limits imposed for the free usage allowance of resources each month, you can utilize Catalyst for free of cost in an unlimited manner. 

### Billing Calculations in Pay-As-You-Go

Upon exceeding the free tier allowance for a specific component, your further usage of Catalyst will be liable for payment. If you opt for the pay-as-you-go model, the [Billing settings](https://docs.catalyst.zoho.com/en/deployment-and-billing/billing/billing-settings/) will display a breakdown of your resource utilization across all projects in an [organization](https://docs.catalyst.zoho.com/en/getting-started/catalyst-organizations/) and their billing calculations for the final amount due. This is refreshed in each billing cycle. 

Catalyst levies a **minimum billing amount of USD 5**. If you exceed the free tier allowance of any one resource, your due payment in the pay-as-you-go model will begin from the USD 5 mark.

> **Note:** For users paying in other currencies, the minimum billing amount is USD 5 converted in the local currency.

Additionally, if you exceed the free tier allowance, you will still be required to pay the minimum billing amount for all the projects that you have created in an organization. 

In the projects where the free tier has been exceeded, an amount worth the value of the free tier allowance of each billable operation left is subtracted from the overall usage of that resource to obtain the billed value during the final billing. 

Let's understand this with an example.

#### Example:

Assume you create three projects in a Catalyst org: Project 1, Project 2, Project 3. Until you exceed the free tier allowance of the Catalyst organization and you continue to operate within the hard limits of each resource, you can work with these projects for free of cost.

Now assume that you exceed the free tier allowance for a resource in any of the projects. Let the overall consumption charges of resources in these three projects be as follows:

<table class="content-table">
	<thead>
		<tr>
			<th class="w25p"> </th>
			<th class="w75p">Overall Consumption Charges</th>
            <th class="w75p">Billed Charges</th>
		</tr>
	</thead>
	<tbody>
		<tr>
			<td>**Project 1**</td>
			<td>$6</td>
            <td>$6</td>
		</tr>
        <tr>
			<td>**Project 2**</td>
			<td>$3</td>
            <td>$5 (Min. billing amount)</td>
		</tr>
        <tr>
			<td>**Project 3**</td>
			<td>$2</td>
            <td>$5 (Min. billing amount)</td>
		</tr>
        <tr>
			<td></td>
			<td>**Total Billed Charges**</td>
            <td>**$16**</td>
		</tr>
	</tbody>
</table>

Because the free tier allowance was exceeded, you are billed the minimum billing amount of $5 in Project 2 and Project 3 as well. This calculation is before the free tier allowance value is subtracted from the overall usage consumption.  
Now, assume the free tier allowances in the organization are worth USD 5.

Your total amount due will then be:  

*$16 - $5 = $11*

i.e., **Total Billed Charges - Free Tier Allowance Left = Total Amount Due**

Suppose you exceed the free tier usage for multiple resources, and your overall consumption charges come to $7 and the free tier allowance left is $2 in that project, then your total amount due will be:

*[$6 + $7 + $5 ] - $2 = $16*

i.e., [Billed Charges in Project 1 + Project 2 + Project 3] - [Free Tier Allowance Left]

> **Note:** Catalyst will not charge the minimum billing amount for a project that is completely empty, if you exceed the free tier allowance. The projects in which no resources have been created or utilized will be exempt from billing entirely. However, if even a single billable action has occurred in the project, it will be billed. Therefore, we recommend you to delete all unused projects to optimize your usage.