Are You Scaling
Into Bankruptcy?
Calculate your AI margin collapse point before investors do.
AWS/GCP/Vercel per user allocation
The Linear Cost Trap of Generative AI
For 20 years, SaaS enjoyed Zero Marginal Cost. Once you wrote the code, the millionth user cost you nothing. Generative AI breaks this physics. It reintroduces COGS (Cost of Goods Sold) into software. Every query has a compute cost. Every prompt burns cash.
The AI Unit Economics Benchmark (AUEB) is designed to detect the "Insolvency Horizon." Many AI startups are essentially Ponzi schemes where Series A capital is used to subsidize OpenAI's server bills. If your Gross Margin is below 60%, you are not building a software company—you are building a reselling agency with bad margins.
The "Token Tax"
Stop asking "What can AI do?" and start asking "What does the query cost?"
If a user pays you $20/month, and they run 500 queries at $0.03/query (GPT-4), your cost is $15. Your margin is $5 (25%). After server costs and stripe fees, you are losing money on every customer. This calculator exposes that math instantly.