At 40 requests/user/day (totaling 60,000 queries/mo), running AI coding assistant on Text Embedding 004 costs $14.40 / month ($0.288 / user / mo).
Total expected API invoice for 50 Active Users generating 60,000 queries.
Direct inference cost per MAU to model your SaaS pricing tiers and gross margins.
Savings generated by exploiting 60% cache hits on prompt context.
| Model | Provider | Monthly Spend (50 Active Users) | Cost / User / Mo | Annual Spend | Context Limit |
|---|---|---|---|---|---|
| Text Embedding 004 (Current) | $14.40 | $0.288 | $172.80 | 8,192 | |
| Text Embedding 3 (Small) | openai | $14.40 | $0.288 | $172.80 | 8,191 |
| Text Embedding 3 (Large) | openai | $93.60 | $1.872 | $1,123.20 | 8,191 |
At 40 queries per user/day with Text Embedding 004, the estimated cost is $0.288 per monthly active user (MAU). Total monthly bill for 50 Active Users is $14.40.
Assuming a 60% cache hit rate on repeated system and context tokens, prompt caching saves $0.00 per month ($0.00/year) on Text Embedding 004.
With a direct COGS of $0.288 per user/month on Text Embedding 004, charging at least $1.44 per user/month ensures an 80%+ software gross margin.