Know Your LLM Costs Before Your Pricing Is Locked In

Traditional SaaS economics are forgiving on the margin side — once software is written, the marginal cost of serving another user approaches zero. AI-native products break this model. Every request hits an LLM API that charges by the token. Your cost to serve scales with usage.

The calculator above lets you model this before it surprises you. Enter your model tier, token volumes, caching assumptions, and end-user pricing. The output shows where your gross margin lands and how sensitive it is to each variable — power users, long context windows, and output-heavy use cases all shift the number meaningfully.

For the full breakdown on why AI COGS catches teams off guard — including the power-user margin trap and how to use prompt caching strategically — read AI Gross Margin: Forecasting LLM Token Costs for AI-Native Products.