The number that tells you what to charge for your AI product.
Your Cost-to-Price Floor — the minimum you can charge and still hit your margin, grounded in how your heaviest customers actually burn tokens.
- P90 cost aware
- Target margin aware
- Shareable snapshot
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What is CPF?The one-line definition + why P90 mattersExpand
CPF stands for Cost-to-Price Floor. It's the minimum monthly price you can charge to remain profitable at your target margin.
CPF = (90th percentile cost per customer) / (1 − target margin)
Why the 90th percentile? Because if your top 10% heaviest users are unprofitable, those customers eat the margin from everyone else. Pricing from the average is a trap.
Example: If your heaviest 10% of customers cost $28/month to serve in LLM costs, and you want a 70% gross margin, your CPF is $28 ÷ 0.30 = $93/month. Anything below that, you're losing money on your worst customers.