At 200 requests/user/day (totaling 6,000,000 queries/mo), running Data extraction & tagging on Text Embedding 3 (Small) costs $240.00 / month ($0.24 / user / mo).
Total expected API invoice for 1,000 Active Users generating 6,000,000 queries.
Direct inference cost per MAU to model your SaaS pricing tiers and gross margins.
Savings generated by exploiting 20% cache hits on prompt context.
| Model | Provider | Monthly Spend (1,000 Active Users) | Cost / User / Mo | Annual Spend | Context Limit |
|---|---|---|---|---|---|
| Text Embedding 3 (Small) (Current) | openai | $240.00 | $0.24 | $2,880.00 | 8,191 |
| Text Embedding 3 (Large) | openai | $1,560.00 | $1.56 | $18,720.00 | 8,191 |
| Text Embedding 004 | $240.00 | $0.24 | $2,880.00 | 8,192 |
At 200 queries per user/day with Text Embedding 3 (Small), the estimated cost is $0.24 per monthly active user (MAU). Total monthly bill for 1,000 Active Users is $240.00.
Assuming a 20% cache hit rate on repeated system and context tokens, prompt caching saves $0.00 per month ($0.00/year) on Text Embedding 3 (Small).
With a direct COGS of $0.24 per user/month on Text Embedding 3 (Small), charging at least $1.20 per user/month ensures an 80%+ software gross margin.