EFuturesCFO Β· AI Companies Suite
API Pricing & Token Economics
Model input/output token pricing, cost per inference, tier-level margins, and volume-based pricing strategies for AI API products.
Executive Summary
Tier Economics
Revenue & Margin Trajectory
Margin Levers
Methodology
Gross revenue = Ξ£ (tokens Γ· 1M Γ price) by input/output. COGS = tokens Γ unit cost, reduced by cache hit rate Γ caching savings. Free tier volume earns $0 but still incurs COGS. Enterprise volume applies discount to list price. Blended margin = (Net Revenue β COGS) Γ· Net Revenue. Batch discount applies to eligible volume. Target API gross margins: 60β80% at scale.