Unit Economics Lab

The $5 / 1,000 requests problem

"Even pay-per-usage is expensive — $5 per 1,000 post-read requests. LLM-level pricing everywhere." Model your real monthly API bill below. Drag the skyline to orbit; every slider rebuilds the towers.

API data cost Infra Revenue Margin
drag to orbit · wheel/pinch to zoom

Your inputs

Response cachingServe repeat reads from your own cache
Request batchingCombine N reads into one call (~25% fewer billable requests)
Monthly API cost
$0
Monthly revenue
$0
Margin
$0
Break-even price / user
$0

The formulas

monthly_api_cost = users × req/day × 30 × (price / 1000)
effective_req = req × (1 − hit_rate) × batch_factor
margin = revenue − api_cost − infra
break_even_ARPU = api_cost_per_user + infra_per_user

At $5/1k, one user making 40 requests a day costs you 40 × 30 × $0.005 = $6.00/month in data fees alone — before servers, before payroll. If you charge $12, half your revenue is gone at the meter.

Why everything is priced like an LLM now

Data platforms watched AI companies pay LLM-level rates for tokens and repriced their own APIs to match — social reads, search results, and enrichment endpoints that once cost cents per 10k now cost dollars per 1k.

Sellers justify it as "AI demand"; buyers experience it as a tax on every feature. The practical consequence: per-request cost is now a first-class design constraint, like latency or uptime.

Cost levers that actually work

Build vs. buy at these prices

Buy when the data is proprietary (you literally can't get it elsewhere), volumes are low, or speed-to-market beats margin for now.

Build (own pipeline, first-party collection, or a cheaper aggregator) when API spend exceeds roughly one engineer-month per month, when pricing is volatile, or when a vendor's rate hike could kill your unit economics overnight — the calculator above shows exactly where that line is for you.

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