AI Margin Calculator for Pricing Your AI App

Work backwards from LLM API costs to what your AI app should charge. Live margins for 24 models, break-even prices, and 70-80% gross margin targets.

Model$ / 1M in · outCost / requestCost / 1K requestsCost / month
GPT-5.6 Sol OpenAI$5.00 · $30.00$0.017750$17.750$1775.00
GPT-5.6 Terra OpenAI$2.50 · $15.00$0.008875$8.875$887.50
GPT-5.6 Luna OpenAI$1.00 · $6.00$0.003550$3.550$355.00
GPT-5.4 mini OpenAI$0.75 · $4.50$0.002662$2.663$266.25
GPT-5.4 nano OpenAI$0.20 · $1.25$0.000735$0.735$73.50
Claude Fable 5 Anthropic (Claude) · tokenizer ~1.3×$10.00 · $50.00$0.031125$31.125$3112.50
Claude Opus 4.8 Anthropic (Claude) · tokenizer ~1.3×$5.00 · $25.00$0.015562$15.562$1556.25
Claude Sonnet 5 Anthropic (Claude) · tokenizer ~1.3× · price change scheduled$2.00 · $10.00$0.009338$9.338$933.75
Claude Haiku 4.5 Anthropic (Claude)$1.00 · $5.00$0.003112$3.112$311.25
Gemini 3.1 Pro (Preview) Google (Gemini API)$2.00 · $12.00$0.007100$7.100$710.00
Gemini 3.5 Flash Google (Gemini API)$1.50 · $9.00$0.005325$5.325$532.50
Gemini 2.5 Flash-Lite Google (Gemini API)$0.10 · $0.40$0.000255$0.255$25.50
DeepSeek V4 Pro DeepSeek$0.43 · $0.87$0.000654$0.654$65.43
DeepSeek V4 Flash DeepSeek$0.14 · $0.28$0.000211$0.211$21.14
Mistral Medium 3.5 Mistral$1.50 · $7.50$0.005250$5.250$525.00
Mistral Large 3 Mistral$0.50 · $1.50$0.001025$1.025$102.50
Mistral Small 4 Mistral$0.15 · $0.60$0.000382$0.382$38.25
Grok 4.5 xAI (Grok)$2.00 · $6.00$0.004250$4.250$425.00
Grok 4.3 xAI (Grok)$1.25 · $2.50$0.001975$1.975$197.50
Llama 4 Scout Meta Llama (hosted)$0.10 · $0.30$0.000250$0.250$25.00
Llama 4 Maverick Meta Llama (hosted)$0.15 · $0.60$0.000450$0.450$45.00
Amazon Nova Pro Amazon (Nova on Bedrock)$0.80 · $3.20$0.002400$2.400$240.00
Amazon Nova Lite Amazon (Nova on Bedrock)$0.06 · $0.24$0.000180$0.180$18.00
Amazon Nova Micro Amazon (Nova on Bedrock)$0.04 · $0.14$0.000105$0.105$10.50

The table starts with a chat assistant workload and lists the best-known models first. Adjust the inputs above and every cost recomputes live. Base prices refresh weekly from a live feed (last update 2026-07-11), while caching mechanics, batch discounts, and announced price changes are verified by hand against official pricing pages listed in the sources. The reasoning multiplier applies only to models that bill thinking tokens as output.

What should you charge?

API cost / user / month $2.80
Gross margin at your price 86.0%
Break-even price $2.80
Price for 70% margin $9.34
Price for 80% margin $14.01
Margin if usage doubles 72.0%
Margin at 5× usage 30.0%

Gross margin counts API cost only. Hosting, support, and payment fees come out of the same price. Healthy AI products keep API costs to 15–30% of revenue, and a common rule of thumb is charging 3.5–5× your token cost. The usage-growth rows show what happens to margin when your users get more active without paying more.

Charging for usage means metering it. Kelviq bundles usage metering, entitlements, and merchant-of-record billing for AI products into one transaction fee.

Why margin, not cost, decides whether your AI app works

Cost per request is an input, not a decision. The decision is gross margin, meaning (price − API cost per user) ÷ price. Healthy AI products keep API costs to 15-30% of revenue. Typical AI wrappers today run 25-60% gross margins, against 80-90% for classic SaaS, and that gap is what pricing has to close, because the model bill scales with every active user in a way traditional hosting never did.

Most calculators stop at “your workload costs $X.” This one inverts the math. Given a cost per user, it returns the break-even price, the price for a 70% or 80% margin, and what happens to your margin if usage doubles or quintuples.

The inverse math, worked through

The inversion is one line. Price = cost per user ÷ (1 − target margin).

Take Claude Sonnet 5 at $0.006225 per chat request (1,000 input / 500 output tokens, 50% cached). At 300 requests per user per month, the numbers fall out like this.

  • Cost per user comes to 300 × $0.006225 = $1.87/month
  • Break-even price is $1.87
  • A 70% margin needs $1.87 ÷ 0.30 = $6.22
  • An 80% margin needs $1.87 ÷ 0.20 = $9.34
  • A $20 seat yields a 90.7% gross margin

That is where the 3.5-5× rule of thumb comes from, since charging 3.5-5 times token cost yields 70-80% gross margin. On the cheap end, GPT-5.6 Luna costs $1.07/user at the same usage, a 94.7% margin at $20. One caveat is baked into the numbers. Sonnet 5’s figure is intro pricing that rises about 50% on September 1, 2026, which pushes cost per user to roughly $2.80 and trims the $20-seat margin to 86%.

Per-seat plans, credit packs, and breakage

A flat seat is the simplest sell, but margin then floats with each user’s consumption. Credit packs, the most common AI wrapper pricing model, cap your exposure. The user prepays for a fixed amount of usage, and 92% of AI software companies now mix subscription and usage pricing in some form.

Credits also introduce breakage. Cursor Pro charges $20/month for roughly $20 of included usage, approximately 0% margin on usage actually consumed. The margin comes from users who don’t consume their full allowance. Breakage can rescue an otherwise thin sticker margin, but it is fragile. As power users learn to max out allowances, realized margin converges toward the consumed-usage margin.

The usage-growth trap

The margin panel above shows your margin at 2× and 5× current usage for a reason. At a $20 seat on Sonnet 5, 300 requests/month is a 90.7% margin, 600 requests is 81.3%, and 1,500 requests is 53.3%. On Claude Fable 5 the same seat starts at 53.3% margin, drops to 6.6% at 2× usage, and is deeply underwater at 5×. Flat seats with growing per-user usage is the standard way AI products quietly lose their margins, because usage almost never shrinks after you ship a feature that increases it.

Cheaper model or higher price?

When margin is short of target, you have two levers, and they are not symmetric.

Switch models when quality permits. At a $6 seat with Sonnet 5, margin is 68.9%. Routing to Haiku 4.5 ($0.93/user) takes it to 84.4%, GPT-5.6 Luna ($1.07/user) to 82.2%, and DeepSeek V4 Pro ($0.20/user) to 96.7%. Model routing, sending cheap models the simple requests and flagships the hard ones, captures much of this without a full switch.

Raise price when quality doesn’t. If the product only works on a flagship, the price must reflect it. Fable 5 at $9.34/user needs a seat above $31 for 70% margin. Pricing below that isn’t a growth strategy. It’s a countdown.

Price sources & freshness

Base per-token prices refresh weekly from the OpenRouter model feed (last refresh 2026-07-11). Everything the feed can’t see, such as caching mechanics, batch discounts, long-context tiers, and announced price changes, is verified by hand against each provider’s official API pricing page.

  • OpenAI official pricing, details last verified 2026-07-11 (The GPT-5.6 family (Sol/Terra/Luna) launched Jul 9, 2026. Its three-tier naming replaces the mini/nano ladder at the top end.)
  • Anthropic (Claude) official pricing, details last verified 2026-07-11 (Opus 4.7+, Sonnet 5, and Fable 5 use a new tokenizer producing up to roughly 30% more tokens for the same text, so cross-provider per-token comparisons understate Claude cost slightly.)
  • Google (Gemini API) official pricing, details last verified 2026-07-11 (Gemini 3.1 Pro doubles input pricing above 200K input tokens, the only two-tier context pricing in this comparison.)
  • DeepSeek official pricing, details last verified 2026-07-11 (Prices below are DeepSeek's first-party API. OpenRouter routes some DeepSeek models through discounted hosts at different prices.)
  • Mistral official pricing, details last verified 2026-07-11 (Verify against the API pricing page, since Mistral's marketing pages have shown stale prices for retired models.)
  • xAI (Grok) official pricing, details last verified 2026-07-11
  • Meta Llama (hosted) official pricing, details last verified 2026-07-11 (These are open-weight models, so the same model costs different amounts on different hosts such as Groq, DeepInfra, and Bedrock. Prices shown are OpenRouter's routed rate, indicative rather than contractual.)
  • Amazon (Nova on Bedrock) official pricing, details last verified 2026-07-11 (Bedrock also hosts Anthropic, Mistral, and DeepSeek models, with Claude at first-party prices and DeepSeek at different ones. Only Amazon's own Nova line is listed here.)

Frequently asked questions

Healthy AI products keep API costs to 15-30% of revenue, which implies a 70-85% gross margin on the AI line item. Typical AI wrapper products today run 25-60% gross margins, well below the 80-90% of classic SaaS. Most teams set 70-80% as the pricing target and work backwards from model cost to reach it.

Gross margin is (price minus API cost per user) divided by price. For example, a user making 300 chat requests per month on Claude Sonnet 5 costs about $1.87 in API spend, and at a $20 seat price that is a 90.7% gross margin. The calculator on this page runs the same math for 24 current models.

A common rule of thumb is to charge 3.5-5 times your token cost, which lands at a 70-80% gross margin. At $1.87 of API cost per user per month, that means pricing between roughly $6.22 (70% margin) and $9.34 (80% margin) at minimum. Most products price higher to cover non-AI costs and usage growth.

Break-even is the price at which revenue per user exactly equals API cost per user, leaving 0% gross margin. If a user costs $1.87 per month in model spend, $1.87 is the break-even price. Any price below it loses money on every active user before salaries or infrastructure.

Usage per user tends to grow as products add features while flat seat prices stay fixed. A $20 seat on Claude Sonnet 5 earns a 90.7% margin at 300 requests per month, but falls to 81.3% at double the usage and 53.3% at five times the usage. Providers can also raise prices, as with Sonnet 5’s roughly 50% intro-pricing increase on September 1, 2026.

If output quality holds, switching models moves margin faster. At a $6 seat, moving from Sonnet 5 ($1.87/user) to Haiku 4.5 ($0.93/user) lifts margin from 68.9% to 84.4% with no pricing change. If the product genuinely needs a flagship model, the price has to carry it. Claude Fable 5 at $9.34/user needs a seat above $31 to reach 70% margin.