Updated: February 13, 2026
Cost basis: $0.005/page (blended average with cascade routing)
Revised Cost Structure
| Component | Cost/Page | Mix | Contribution |
|---|
| Text-only (Gemini Flash) | $0.001 | 60% | $0.0006 |
| Graphics (Marker + Claude Vision) | $0.006 | 30% | $0.0018 |
| Equations (MathPix) | $0.0035 | 10% | $0.00035 |
| Blended Average | | | ~$0.005 |
Note: Using $0.005 as conservative estimate. Actual may be $0.003-0.004.
Pricing Tiers
| Tier | Price | Pages Included | Effective $/page | Overage |
|---|
| Free | $0 | 100 | — | — |
| Starter | $39/mo | 1,000 | $0.039 | $0.04 |
| Professional | $149/mo | 5,000 | $0.030 | $0.03 |
| Enterprise | Custom | 25,000+ | $0.020-0.025 | — |
Unit Economics (Per Tier)
Starter — $39/month
| Usage | Revenue | COGS | Gross Profit | Margin |
|---|
| 250 pages (25%) | $39 | $1.25 | $37.75 | 97% |
| 500 pages (50%) | $39 | $2.50 | $36.50 | 94% |
| 1,000 pages (100%) | $39 | $5.00 | $34.00 | 87% |
| 1,500 pages (+overage) | $59 | $7.50 | $51.50 | 87% |
Professional — $149/month
| Usage | Revenue | COGS | Gross Profit | Margin |
|---|
| 1,250 pages (25%) | $149 | $6.25 | $142.75 | 96% |
| 2,500 pages (50%) | $149 | $12.50 | $136.50 | 92% |
| 5,000 pages (100%) | $149 | $25.00 | $124.00 | 83% |
| 7,500 pages (+overage) | $224 | $37.50 | $186.50 | 83% |
Enterprise — $0.025/page (25K pages = $625/month)
| Usage | Revenue | COGS | Gross Profit | Margin |
|---|
| 25,000 pages | $625 | $125 | $500 | 80% |
| 50,000 pages | $1,250 | $250 | $1,000 | 80% |
| 100,000 pages | $2,500 | $500 | $2,000 | 80% |
12-Month Revenue Forecast
Customer Acquisition Assumptions
| Month | Free | Starter | Professional | Enterprise |
|---|
| Mar | 50 | 3 | 1 | 0 |
| Apr | 100 | 8 | 3 | 1 |
| May | 150 | 15 | 5 | 1 |
| Jun | 200 | 25 | 8 | 2 |
| Jul | 250 | 35 | 12 | 2 |
| Aug | 300 | 45 | 16 | 3 |
| Sep | 350 | 55 | 20 | 4 |
| Oct | 400 | 70 | 25 | 5 |
| Nov | 450 | 85 | 30 | 6 |
| Dec | 500 | 100 | 35 | 7 |
| Jan ‘27 | 550 | 115 | 42 | 8 |
| Feb ‘27 | 600 | 130 | 50 | 10 |
Assumes 5% monthly churn on paid tiers, 20% free-to-paid conversion over time
Monthly Revenue
| Month | Starter | Professional | Enterprise | Total MRR |
|---|
| Mar ‘26 | $117 | $149 | $0 | $266 |
| Apr | $312 | $447 | $625 | $1,384 |
| May | $585 | $745 | $625 | $1,955 |
| Jun | $975 | $1,192 | $1,250 | $3,417 |
| Jul | $1,365 | $1,788 | $1,250 | $4,403 |
| Aug | $1,755 | $2,384 | $1,875 | $6,014 |
| Sep | $2,145 | $2,980 | $2,500 | $7,625 |
| Oct | $2,730 | $3,725 | $3,125 | $9,580 |
| Nov | $3,315 | $4,470 | $3,750 | $11,535 |
| Dec | $3,900 | $5,215 | $4,375 | $13,490 |
| Jan ‘27 | $4,485 | $6,258 | $5,000 | $15,743 |
| Feb ‘27 | $5,070 | $7,450 | $6,250 | $18,770 |
Cumulative Revenue (Year 1)
| Metric | Value |
|---|
| Total Revenue (12 mo) | $94,182 |
| Average MRR | $7,849 |
| Exit MRR (Feb ‘27) | $18,770 |
| ARR Run Rate (Feb ‘27) | $225,240 |
Cost Forecast
Variable Costs (COGS)
Assumes 60% average utilization across tiers
| Month | Pages Processed | COGS @ $0.005 |
|---|
| Mar | 3,600 | $18 |
| Apr | 19,500 | $98 |
| May | 32,250 | $161 |
| Jun | 57,000 | $285 |
| Jul | 79,500 | $398 |
| Aug | 106,500 | $533 |
| Sep | 135,000 | $675 |
| Oct | 172,500 | $863 |
| Nov | 211,500 | $1,058 |
| Dec | 250,500 | $1,253 |
| Jan ‘27 | 298,200 | $1,491 |
| Feb ‘27 | 352,500 | $1,763 |
Total COGS (12 mo): ~$8,596
Fixed Costs (Monthly)
| Item | Cost |
|---|
| Cloudflare (Workers, R2, etc.) | $25 |
| Domain + DNS | $5 |
| Monitoring (Sentry, etc.) | $30 |
| Email (Resend) | $20 |
| Total Fixed | $80/mo |
Note: No significant infrastructure costs — Cloudflare scales with usage at minimal cost
Profit & Loss Summary
| Month | Revenue | COGS | Fixed | Net Profit | Margin |
|---|
| Mar | $266 | $18 | $80 | $168 | 63% |
| Apr | $1,384 | $98 | $80 | $1,206 | 87% |
| May | $1,955 | $161 | $80 | $1,714 | 88% |
| Jun | $3,417 | $285 | $80 | $3,052 | 89% |
| Jul | $4,403 | $398 | $80 | $3,925 | 89% |
| Aug | $6,014 | $533 | $80 | $5,401 | 90% |
| Sep | $7,625 | $675 | $80 | $6,870 | 90% |
| Oct | $9,580 | $863 | $80 | $8,637 | 90% |
| Nov | $11,535 | $1,058 | $80 | $10,397 | 90% |
| Dec | $13,490 | $1,253 | $80 | $12,157 | 90% |
| Jan ‘27 | $15,743 | $1,491 | $80 | $14,172 | 90% |
| Feb ‘27 | $18,770 | $1,763 | $80 | $16,927 | 90% |
Year 1 Summary
| Metric | Value |
|---|
| Total Revenue | $94,182 |
| Total COGS | $8,596 |
| Total Fixed Costs | $960 |
| Net Profit | $84,626 |
| Net Margin | 90% |
Cash Flow Milestones
| Milestone | Target Date | MRR |
|---|
| First paying customer | Mar 15, 2026 | — |
| $1K MRR | Apr 2026 | $1,384 |
| $5K MRR | Aug 2026 | $6,014 |
| $10K MRR | Nov 2026 | $11,535 |
| $15K MRR | Jan 2027 | $15,743 |
| $225K ARR run rate | Feb 2027 | $18,770 |
Sensitivity Analysis
If costs are higher ($0.01/page instead of $0.005)
| Metric | $0.005/page | $0.01/page | Impact |
|---|
| Year 1 COGS | $8,596 | $17,192 | +$8,596 |
| Year 1 Profit | $84,626 | $76,030 | -10% |
| Net Margin | 90% | 81% | Still healthy |
If growth is 50% slower
| Metric | Base Case | Slow Growth | Impact |
|---|
| Feb ‘27 MRR | $18,770 | $9,385 | -50% |
| Year 1 Revenue | $94,182 | $47,091 | -50% |
| Year 1 Profit | $84,626 | $41,865 | -51% |
If Enterprise closes faster (2 deals in Q1)
| Metric | Base Case | Fast Enterprise | Impact |
|---|
| Apr MRR | $1,384 | $2,634 | +90% |
| Year 1 Revenue | $94,182 | $109,182 | +16% |
Key Takeaways
- Margins are exceptional — 87-90% net margin due to $0.005 cost basis
- Break-even is instant — positive cash flow from month 1
- Enterprise is gravy — even at $0.025/page, 80% margin
- Pricing has room — could cut prices 50% and still maintain 75%+ margins
- Risk is low — even at 2x costs and 50% slower growth, still profitable
The updated cost structure ($0.005 vs $0.02) makes this a much better business than originally modeled.
