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AI margin calculator by Okane Land ↗

The Palette · a free, directional estimator

AI margin calculator

What you actually keep from your MRR.

The MRR screenshot is the most shared number in indie AI and the least useful. Revenue is what they pay you. Income is what is left after the model bill, the card fees, the refunds, the tax you are only holding, and the people who quietly leave. Put your numbers in. See the real one. It is the math from the economics piece, made clickable.

Your numbers

Try one

Each preset fills every field. The model buttons set only the token price. Edit anything and it becomes your own scenario.

What one customer pays you per month.
$
How many are subscribed right now.
Sets a rough blended token price. Edit the number below if you know your real blend.
Auto-set by your model. Directional, last set Jun 2026.
$/ M tok
Millions of tokens an average user burns.
M tok
Share of customers who leave each month.
%
Higher card fees plus currency conversion.
%
Set 0 if it is added on top and is not your liability.
%

The screenshot, minus everything

Gross MRR $10,000
You keep $3,260

That is 33% of the number you would screenshot.

Gross revenueprice × paying customers $10,000
Token billyour metered cost of goods − $5,000
Card feesprocessing, international, conversion − $540
Failed paymentsexpired and declined cards, no dunning − $900
Refunds and disputesreversed sales keep their fee, chargebacks − $300
Tax you remitflows through, flows back out − $0
What you actually keep $3,260

Per customer, you keep $6.52 of the $20.00 they pay. At 6.1% monthly churn, you replace about 31 customers a month just to stand still.

Your token cost is above your price. A user this heavy costs you more than they pay. A flat fee on a metered cost only works if you cap the heavy tail with rate limits.

A link that reopens this exact scenario, ready to compare.

A concrete read of the defaults: a $20 product with 500 paying customers grosses $10,000 a month. The token bill takes $5,000, card fees about $540, failed payments $900, and refunds $300, which leaves $3,260. That is 33% of the number you would screenshot, the shape of a flat price sitting on a metered cost.

These are starting points from the research, not your receipts. Change any of them to your real number, that is the point.

The token bill is the margin you do not have.

Mature SaaS runs at 70 to 80% gross margin because hosting amortizes toward zero. AI does the opposite: every query is metered, so inference becomes the dominant cost at scale. Industry AI gross margins sit near 52%, not 80%. In the defaults here, a $20 product with 500 users carries a $5,000 monthly inference bill, half of the $10,000 it grosses.

Cheap and self-serve is where churn is worst.

Products under $25 a month churn around 6.1% monthly, roughly half the base in a year. Over $250 a month, retention jumps near 70%. For most solo AI products the move is up-market, not more users. At the 6.1% default, that is about 31 customers you replace every month just to hold the line.

The cheapest income is the income you already earned.

Failed and declined cards are 20 to 40% of all churn, and around 9% of MRR can simply fail to collect. Dunning, the automated retries and card-update nudges, claws it back with zero new customers. In the defaults, roughly $900 of that $10,000 walks out on failed cards before anyone cancels.

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Numbers are directional, not financial advice.

AI margin calculator · Okane Land ↗