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How much should you charge?

Your LLM cost is variable. Enter it and the margin you want — see the minimum price that keeps every customer profitable.

How to set your price

Estimate the LLM cost

Per customer, per month — a rough dollar amount, or by model + tokens.

Pick a target margin

The gross margin you want to keep — 70%+ is healthy for software.

Read the price

The minimum monthly price to hit it, plus your margin at common prices.

Why price from cost, not from a hunch

Classic SaaS prices on value alone — cost per customer is near zero. AI SaaS can't: every customer burns LLM tokens, so your floor price depends on usage and the model you run.

Price below cost-plus-margin and growth makes you poorer. This tool gives you the floor — the minimum to protect your margin — so you can price for value above it, not blindly under it.

It's a single-customer view. MarginWard does it across every customer on your real data, so you see who's priced wrong before the invoice lands.

See your margin per customer with the free margin calculator

FAQ

How is the recommended price calculated?+

Price = LLM cost ÷ (1 − target margin). At $12 cost and a 70% target, that's $12 ÷ 0.3 = $40/mo — the minimum to keep a 70% gross margin.

What gross margin should I target?+

Software usually targets 70–80%. AI products often run lower (~50–70%) because of token cost. Pick the margin your business needs, then price to it.

Does this include other costs?+

No — it's a gross, per-customer view based on LLM cost. Add other variable costs (vector search, tools) into the cost field for a fuller picture.

Should I use flat or usage-based pricing?+

Flat is simpler, but every heavy user eats your margin. Know your break-even, and consider higher tiers or usage caps for power users.

Do you store anything?+

No. Everything runs in your browser; the share link just encodes your inputs in the URL.

Want this on your real numbers?

Put this calculator on your site

Free to embed. Paste it wherever you like — it carries a link back to MarginWard.

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