Calculate the gross margin of your AI-powered product. See your cost per query, margin per user, recommended price points, and the exact volume needed to hit your target margin.
LLM Cost Inputs
Additional Costs & Revenue
Margin Results
Gross margin gauge
Cost vs Revenue per query
Pricing Sensitivity Table
How margin changes at different price points for your current usage
| Charge/Query | Monthly Revenue | Gross Margin | Net Profit/Loss | Verdict |
|---|
LLM Cost Per Query = (Input Tokens × Input Price/MTok + Output Tokens × Output Price/MTok) ÷ 1,000,000
Total Variable Cost Per Query = LLM cost + other per-query costs (infra, embeddings, DB reads, etc.)
Gross Margin = (Revenue per query − Variable cost per query) ÷ Revenue per query × 100. This is the margin before fixed costs — the pure unit economics of your AI product.
Net Monthly Profit = (Revenue per query − Variable cost per query) × monthly queries − fixed monthly costs.
Break-Even Volume = Fixed monthly costs ÷ Gross profit per query. The minimum query volume needed to cover your infrastructure and operations before turning profitable.
Target Price for Margin = Variable cost per query ÷ (1 − target margin %). For a 70% margin target: price = cost ÷ 0.30.
⚠️ LLM pricing changes frequently. Verify current rates with your provider before making pricing decisions. Gross margin shown is on query revenue only and excludes R&D, sales, and marketing costs.