AI SaaS Pricing Calculator
Calculate the right price for your AI SaaS product based on LLM costs, target gross margin, and paying user conversion rate. Never underprice your AI product again.
Inputs
The model powering your product. This is usually your largest cost.
Total unique users per day, including free tier.
How many conversations or sessions each active user has per day.
System prompt + conversation history + user message. Typically 1,000–5,000.
AI response length per session. Typically 200–1,000 tokens.
Fraction of DAU who pay. PLG benchmarks: 2–8% for B2C, 10–25% for B2B.
Hosting, database, support tools — costs that don't scale per user.
Healthy AI SaaS: 55–70%. Below 40% = unsustainable at scale.
Cost breakdown
| Item | Monthly | Yearly |
|---|---|---|
| LLM cost (all users) | $135.00 | $1,620.00 |
| Fixed costs | $500.00 | $6,000.00 |
| Total COGS | $635.00 | $7,620.00 |
| Gross profit | $1,315.00 | $15,780.00 |
Comparison
| Option | Monthly | Yearly |
|---|---|---|
| $15/mo — Break-even15.3% gross margin | $750.00 | $9,000.00 |
| $39/mo — Target (60% GM)67.4% gross margin | $1,950.00 | $23,400.00 |
| $39/mo — Recommended (next SaaS tier)67.4% gross margincurrentcheapest | $1,950.00 | $23,400.00 |
Data updated 2026-06-30 · OpenAI token pricing openai.com/api/pricing · Bessemer AI SaaS benchmarks www.bvp.com/atlas/state-of-the-cloud · a16z AI Economics a16z.com/navigating-the-ai-era/
Industry Benchmark
Data updated 2026-06-30 · OpenAI token pricing openai.com/api/pricing · Bessemer AI SaaS benchmarks www.bvp.com/atlas/state-of-the-cloud · a16z AI Economics a16z.com/navigating-the-ai-era/
Trends & comparison
Trend
Comparison (monthly vs. yearly)
Why AI SaaS founders underprice
The most common mistake: pricing based on what competitors charge or what 'feels right', without calculating actual COGS per paying user. With LLM costs, COGS can easily exceed $5–15/user/month for conversational AI products. At $9.99/month, that leaves no room for growth. Use this calculator to find your real floor price.
Free-to-paid conversion matters enormously
A 5% conversion rate means 95% of your users cost you money without paying. Your LLM cost for all users is allocated to paying users only, which can dramatically increase your effective COGS per paying user. Improving conversion from 3% to 6% effectively cuts your COGS per paying user in half.
Frequently asked questions
What is a healthy gross margin for an AI SaaS?▾
AI-first SaaS products typically achieve 50–70% gross margins, compared to 70–80% for traditional SaaS. This is because LLM costs are a direct COGS. Below 40% gross margin, it becomes very difficult to build a sustainable business. Target 60%+ to have room for sales, marketing, and R&D.
How do I calculate the right price for my AI product?▾
Start with your LLM cost per paying user, add your allocated fixed costs, then divide by (1 - target gross margin). Round up to the nearest standard SaaS price point. Example: COGS = $7/user → target 60% GM → minimum price = $7/(1-0.6) = $17.50 → price at $19/mo.
How much do AI SaaS companies spend on LLM costs?▾
On average, LLM costs represent 20–40% of revenue for AI SaaS products. If your LLM cost exceeds 50% of your subscription price, you are likely underpriced. Use this calculator to find the right price for your specific usage profile.