> ## Documentation Index
> Fetch the complete documentation index at: https://docs.prem.io/llms.txt
> Use this file to discover all available pages before exploring further.

# Limits

> Configure monthly spending limits.

## Monthly Limit (Budget)

Each organization has a **monthly spending limit** (budget). This is the maximum amount that you can spend on API usage in a calendar month.

When your spending reaches the budget limit, Prem API blocks API requests until:

* The next billing period starts (the 1st of the next month), or
* You increase the limit in the [dashboard](https://dashboard.prem.io/billing)

<Info>
  Your monthly spending (`period_spent`) goes to zero automatically on the **1st of each month**.
</Info>

## Reasons to change your limit

* **Cost protection**: prevent unexpected charges from scripts that do not stop or from integrations with an incorrect configuration
* **Team budget control**: keep the spending in the budget of your organization
* **Scale up**: increase the limit when your usage grows

## Default limits by tier

Each [usage tier](/rate-limits#usage-tiers) has a default monthly budget limit:

| Tier   | Monthly Budget Limit |
| ------ | -------------------- |
| Base   | \$100                |
| Tier 1 | \$500                |
| Tier 2 | \$5,000              |
| Tier 3 | \$20,000             |

<Tip>
  You can change your monthly limit at any time in the dashboard. An increase of the limit is effective immediately.
</Tip>