At 200 requests/user/day (totaling 300,000 queries/mo), running Data extraction & tagging on Text Embedding 3 (Small) costs $12.00 / month ($0.24 / user / mo).
Total expected API invoice for 50 Active Users generating 300,000 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 (50 Active Users) | Cost / User / Mo | Annual Spend | Context Limit |
|---|---|---|---|---|---|
| Text Embedding 3 (Small) (Current) | openai | $12.00 | $0.24 | $144.00 | 8,191 |
| Text Embedding 3 (Large) | openai | $78.00 | $1.56 | $936.00 | 8,191 |
| Text Embedding 004 | $12.00 | $0.24 | $144.00 | 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 50 Active Users is $12.00.
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.