Guides

AI SaaS gross margin: the complete guide

Flat subscriptions, variable token costs: why AI products break the usual SaaS margin math — and how to get it right, customer by customer.

9 min read

How to reduce LLM cost per customer

The token bill behind each customer is the variable cost that decides your margin. Here's how to bring it down, in order of payback.

6 min read

What's a good gross margin for an AI SaaS?

Useful anchors for what 'good' means — and why the blended number on your dashboard can be lying to you.

5 min read

AI SaaS pricing teardown: the margin math behind the $20/mo plan

Real public prices, real model rates, pure arithmetic: how much usage a $20/mo AI plan can afford before margin hits zero — and what to do about it.

7 min read

Usage-based vs flat pricing for AI SaaS: which protects your margin?

One is easy to buy, the other protects your P&L. Why AI pricing is really a margin decision — and the hybrid most durable AI products land on.

7 min read

What does a free user cost you? Free-tier economics for AI SaaS

Every free signup burns tokens you pay for and pays you nothing. The math on what a free tier really costs — and how to keep it from quietly eating your margin.

6 min read

Break-even usage: the point where a customer starts losing you money

On a flat plan, each customer has a usage ceiling before they cost more than they pay. How to find that line — and use it to price, cap, and catch power users before they hurt.

6 min read