How do I set an annual AI budget?
Finance and engineering leads use this to set an annual AI budget. Because AI cost scales with usage, doubling users roughly doubles spend unless you change the model or the token budget — this page shows the curve so you can plan the levers.
Start here: AI Budget Planner
Results update automatically as you type.
- Chat / assistants(50%)
- $500.00
- RAG / search(30%)
- $300.00
- Other (agents, media)(20%)
- $200.00
Then: Monthly AI Bill Forecaster
Results update automatically as you type.
- Starting monthly spend
- $1,000.00
- Monthly growth
- 15.0%
- Spend in month 12
- $4,652.39
- Cumulative spend
- $29,001.67
| Month 1 | $1,000.00 | $1,000.00 |
| Month 3 | $1,322.50 | $3,472.50 |
| Month 6 | $2,011.36 | $8,753.74 |
| Month 12 | $4,652.39 | $29,001.67 |
Why this isn't trivial
The part people underestimate: a budget based on today's spend understates the year, because usage growth compounds monthly. In practice the biggest savings come from budgeting against projected end-of-year usage with a contingency, so it is worth modelling before you commit.
How it's calculated
We estimate this by projecting monthly spend with your growth rate and summing across twelve months. Every figure uses the current provider prices baked into the site (reviewed daily), and you can override any input to match your own assumptions.
Frequently asked questions
Should I budget on today's spend?+
No — compound your growth rate monthly, or you'll under-budget by year end.
How much contingency?+
Enough for price changes and faster-than-expected growth; a buffer is prudent.
Are these prices up to date?+
Yes. The model prices behind this calculator are refreshed and reviewed daily, so your estimate reflects current provider rates rather than a stale snapshot.
Related
Estimates for planning. Pricing data last reviewed 28 July 2026.