How much to charge for my ai GPT app on Pickaxe?

I can’t give you a direct response, but this is how I estimate my costs.

Here is a detailed step-by-step calculation process to ensure costs are covered, considering the number of tokens used, platform fees, and credit card fees.

Step 1: Calculate Cost per Token

Assume you have the following details:
• Cost per token from the API provider (e.g., OpenAI charges $0.4 - average input/output- per 1,000,000 tokens for GPT-4o-mini).
• Average number of tokens used per session/query (you can do some tests and check on the OpenAI platform what is the average)

Let’s assume the average number of tokens used per session is 2,000.

Step 2: Calculate the Base Cost

Calculate the base cost for the tokens used in one session:

Base Cost per Session = (Cost per 1,000 Tokens)/1,000 x Average Number of Tokens per Session

For example, if the cost per 1,000 tokens is $0.0004:

Base Cost per Session = 0.0004/1,000 x 2,000 = $0.0008

Step 3: Include Platform Fees

Platform fees (Pickaxe) are 10% of the final charge. Let P be the price you charge to the user. The platform fee is:

Platform Fee = 0.10 * P

Step 4: Include Credit Card Fees

Let’s estimate the credit card fees to be 5% of the final charge. The credit card fee is:

Credit Card Fee = 0.05 * P

(this is a simplified view, as credit card transactions are not applied per session, and there is a fixed part in the credit card fee)

Step 5: Total Cost Calculation

The total cost must cover the base cost, platform fees, and credit card fees.

P = Base Cost per Session + Platform Fee + Credit Card Fee

Step 6: Solve for P

P = $0.0008 + 0.15P

P - 0.15P = $0.0008

P = $0.00095 (rounded at $0.001)

Step 7: Final Price

You need to charge approximately $0.001 per session to cover your costs.

10 sessions per day

20 days per month

Minimum Monthly Subscription Price MMSP = 0.001 x 10 x 20 = $0.2

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