Billing Guide

Transparent pricing with detailed cost attribution Understand how costs are calculated and billed.

Billing Model

Korad.ai uses a transparent billing model with three components:

1. Actual Cost - What we pay to LLM providers
2. Profit Margin - Our service fee (default 1.5x)
3. Your Bill - Actual cost × profit margin

Cost Attribution

Every response includes detailed cost headers:

X-Korad-Original-Tokens: 150006
X-Korad-Optimized-Tokens: 32743
X-Korad-Tokens-Saved: 117263
X-Korad-Reduction-Pct: 78%
X-Korad-Savings-USD: $0.029214
X-Korad-Theoretical-Cost: $0.037502    # What you would have paid
X-Korad-Actual-Cost: $0.008288          # What we actually paid
X-Korad-Billed-Amount: $0.056253        # What we charge you
X-Korad-Profit-Margin: 1.50x

Pricing Formula

theoretical_cost = (input_tokens / 1,000,000) × input_price
                 + (output_tokens / 1,000,000) × output_price

actual_cost = theoretical_cost × (1 - optimization_savings)

billed_amount = actual_cost × profit_margin

Example Calculation

Request: 150,006 input tokens, using Claude Sonnet ($3.00/1M input)

Without optimization:

theoretical_cost = (150,006 / 1,000,000) × $3.00 = $0.450
billed_amount = $0.450 × 1.5 = $0.675

With 78% optimization:

actual_cost = $0.450 × (1 - 0.78) = $0.099
billed_amount = $0.099 × 1.5 = $0.149

Your savings: $0.675 - $0.149 = $0.526 (78% savings)

Provider Pricing

Anthropic

Model	Input	Output
Claude Opus	$15.00/1M	$75.00/1M
Claude Sonnet	$3.00/1M	$15.00/1M
Claude Haiku	$0.25/1M	$1.25/1M

OpenAI

Model	Input	Output
GPT-4o	$2.50/1M	$10.00/1M
GPT-4o Mini	$0.15/1M	$0.60/1M

DeepSeek

Model	Input	Output
DeepSeek Chat	$0.14/1M	$0.28/1M
DeepSeek Reasoner	$0.55/1M	$2.19/1M

Google Gemini

Model	Input	Output
Gemini 2.5 Pro	$1.25/1M	$10.00/1M
Gemini 2.5 Flash	$0.075/1M	$0.30/1M

Optimization Savings

Tier 2: Vanishing Context (99%)

Original: 150,000 tokens → Optimized: 1,500 tokens

theoretical_cost = (150,000 / 1,000,000) × $3.00 = $0.450
actual_cost = (1,500 / 1,000,000) × $3.00 = $0.0045
billed_amount = $0.0045 × 1.5 = $0.00675
savings = $0.450 - $0.00675 = $0.44325 (99%)

Tier 3: Recursive RLM (97%)

Original: 200,000 tokens → Optimized: 6,000 tokens

theoretical_cost = (200,000 / 1,000,000) × $3.00 = $0.600
actual_cost = (6,000 / 1,000,000) × $3.00 = $0.018
billed_amount = $0.018 × 1.5 = $0.027
savings = $0.600 - $0.027 = $0.573 (97%)

Tier 5: Savings Slider (89%)

Original: 150,000 tokens → Optimized: 16,384 tokens (extreme)

theoretical_cost = (150,000 / 1,000,000) × $3.00 = $0.450
actual_cost = (16,384 / 1,000,000) × $3.00 = $0.049
billed_amount = $0.049 × 1.5 = $0.074
savings = $0.450 - $0.074 = $0.376 (89%)

Billing Cycles

Monthly Billing

• Billing Period: Calendar month
• Invoice Date: 1st of each month
• Payment Due: 15 days after invoice

Minimum Commitment

Some plans have monthly minimums:

Plan	Minimum	Includes
Starter	$0	Pay-as-you-go
Pro	$50/month	100K included tokens
Enterprise	$500/month	1M included tokens

Payment Methods

• Credit Card (Visa, Mastercard, American Express)
• ACH Transfer (Enterprise)
• Wire Transfer (Enterprise)

Invoices

Each invoice includes:

• Summary: Total cost, taxes, credits
• Usage Breakdown: By model, by date
• Optimization Report: Total savings achieved
• Transaction Log: Detailed request history

Sample Invoice

KORAD.AI - Invoice #2025-02-001
Billing Period: February 2025
─────────────────────────────────────────

USAGE SUMMARY
─────────────────────────────────────────
Model                      Tokens    Cost
─────────────────────────────────────────
claude-opus-4-20250514     1.2M      $18.00
claude-sonnet-4-5-20250929  5.5M      $16.50
claude-haiku-4-5-20251001   8.3M      $2.08
gpt-4o                      2.1M      $5.25
─────────────────────────────────────────
Subtotal                              $41.83
Optimization Applied                  -$26.45
Actual Cost                           $15.38
Profit Margin (1.5x)                  $23.07
─────────────────────────────────────────
TOTAL DUE                             $38.45

OPTIMIZATION SAVINGS
─────────────────────────────────────────
Original Cost:         $41.83
Optimized Cost:        $15.38
Your Savings:          $26.45 (63%)
─────────────────────────────────────────

Cost Monitoring

Real-Time Monitoring

curl http://localhost:8081/api/billing/usage

Response:

{
  "current_month": {
    "total_cost": 38.45,
    "total_savings": 26.45,
    "total_requests": 15420,
    "breakdown_by_model": {
      "claude-opus-4-20250514": 18.00,
      "claude-sonnet-4-5-20250929": 16.50
    }
  }
}

Budget Alerts

Set up alerts at specific thresholds:

• 50% of budget
• 80% of budget
• 100% of budget (hard limit)

Refund Policy

• Service Credits: Issued for downtime
• Prorated Refunds: For mid-month cancellations
• Overage Refunds: If billed in error

Support

For billing questions:

• Email: billing@korad.ai
• Dashboard: https://dashboard.korad.ai/billing

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Transparent pricing with detailed cost breakdown on every request.