AI Unit Economics Lab

Model Switch Margin Impact

Compare LLM model A vs model B with shared assumptions before changing your production model.

How this tool works

This tool runs the same deterministic RAG economics model twice (baseline and candidate), then reports cost and margin deltas so you can decide if a migration is financially justified.

How It Works

  1. Select baseline and candidate model rows from the pricing snapshot.
  2. Keep usage assumptions identical across both runs.
  3. Compare cost per user, gross margin, and break-even price deltas.

Formula

margin_delta_pct = margin_candidate_pct - margin_baseline_pct

cost_delta_per_user = cost_candidate - cost_baseline

Assumptions and Units

  • Currency: USD
  • Token unit: token
  • Both runs share the same usage and retrieval assumptions
  • Pricing source: versioned in-repo snapshot (no runtime scraping)

Related resources

Start from a baseline in RAG Cost per User, then validate packaging in RAG Break-even Price.

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