At 15 requests/user/day (totaling 225,000 queries/mo), running Translation on Text Embedding 004 costs $22.50 / month ($0.045 / user / mo).
Total expected API invoice for 500 Active Users generating 225,000 queries.
Direct inference cost per MAU to model your SaaS pricing tiers and gross margins.
Savings generated by exploiting 15% cache hits on prompt context.
| Model | Provider | Monthly Spend (500 Active Users) | Cost / User / Mo | Annual Spend | Context Limit |
|---|---|---|---|---|---|
| Text Embedding 004 (Current) | $22.50 | $0.045 | $270.00 | 8,192 | |
| Text Embedding 3 (Small) | openai | $22.50 | $0.045 | $270.00 | 8,191 |
| Text Embedding 3 (Large) | openai | $146.25 | $0.2925 | $1,755.00 | 8,191 |
At 15 queries per user/day with Text Embedding 004, the estimated cost is $0.045 per monthly active user (MAU). Total monthly bill for 500 Active Users is $22.50.
Assuming a 15% 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 $0.045 per user/month on Text Embedding 004, charging at least $0.225 per user/month ensures an 80%+ software gross margin.