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Cost Analysis

This page breaks down the AI and infrastructure costs that inform Softly's subscription pricing.

AI Costs (Claude Haiku)

Per-Call Costs

OperationAvg Input TokensAvg Output TokensCost
Task parse~200~100~$0.001
Task edit~400~100~$0.001
Suggestions~500~200~$0.002

Per-User Monthly Cost

TierMax AI CallsEstimated Actual UsageAI Cost/User/Month
Free53$0.003
Pro20020$0.02
Family (per household)20040$0.04

TIP

Most users won't hit their limits. The estimated actual usage is based on the assumption that power users parse ~1 task/day and use suggestions occasionally.

Haiku vs Sonnet

ModelCost per ParseQuality for Structured Extraction
Claude 3.5 Haiku~$0.001Sufficient -- narrow prompt, JSON output
Claude 3.5 Sonnet~$0.01Marginally better, 10x more expensive

Haiku was chosen because the task parsing prompt is highly constrained (fixed output schema, limited categories, clear instructions). The quality difference vs Sonnet is negligible for this use case.

At-Scale Projections

UsersFree (70%)Pro (25%)Family (5%)Total AI Cost/Month
1,000$2.10$5.00$2.00$9.10
10,000$21$50$20$91
100,000$210$500$200$910

AI costs scale linearly and remain a small fraction of subscription revenue.

Subscription Revenue vs Cost

Assuming monthly pricing:

TierMonthly PriceAI CostMargin
Free$0$0.003-$0.003
Pro$4.99/month$0.02$4.97 (99.6%)
Family$7.99/month$0.04$7.95 (99.5%)

Free users cost almost nothing. Paid users have 99%+ margins on AI costs. The main costs at scale will be infrastructure (server, database, CDN), not AI.

Lifetime Subscriptions

Lifetime purchases require a different sustainability calculation:

  • Breakeven: A lifetime purchase at $79.99 (~$68 after Apple's 15% cut) covers ~80 years of Haiku AI costs. Not a sustainability concern.
  • Mitigation: Most lifetime users have lower long-term engagement. Historically in consumer apps, lifetime purchasers churn within 6-12 months of active use, then become dormant (near-zero cost).
  • Cap: Lifetime purchases may be removed or price-increased once the user base reaches a threshold where the risk is meaningful.

Infrastructure Costs

ServiceEst. Monthly CostNotes
Server (Rails)$20-50Single VPS or small instance
PostgreSQL$15-30Managed or self-hosted
DeepgramUsage-based~$0.01/minute of transcription
Expo Push APIFreeIncluded with Expo
RevenueCatFree up to $2.5k MTRThen 1% of revenue
New RelicFree tier100GB/month ingest
GitHub ActionsFree tier2,000 min/month

Total infrastructure for an early-stage app: ~$50-100/month. The first ~20 Pro subscribers cover this.

Internal documentation — not for public distribution