At 4 requests/user/day (totaling 12,000,000 queries/mo), running Document summarization on Text Embedding 3 (Small) costs $6,000.00 / month ($0.06 / user / mo).
Total expected API invoice for 100,000 Active Users generating 12,000,000 queries.
Direct inference cost per MAU to model your SaaS pricing tiers and gross margins.
Savings generated by exploiting 10% cache hits on prompt context.
| Model | Provider | Monthly Spend (100,000 Active Users) | Cost / User / Mo | Annual Spend | Context Limit |
|---|---|---|---|---|---|
| Text Embedding 3 (Small) (Current) | openai | $6,000.00 | $0.06 | $72,000.00 | 8,191 |
| Text Embedding 3 (Large) | openai | $39,000.00 | $0.39 | $468,000.00 | 8,191 |
| Text Embedding 004 | $6,000.00 | $0.06 | $72,000.00 | 8,192 |
At 4 queries per user/day with Text Embedding 3 (Small), the estimated cost is $0.06 per monthly active user (MAU). Total monthly bill for 100,000 Active Users is $6,000.00.
Assuming a 10% 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 $0.06 per user/month on Text Embedding 3 (Small), charging at least $0.30 per user/month ensures an 80%+ software gross margin.