Spawn Cost Breakdown

Last updated: 2026-02-05

Final Decision

  • Starter: $20/month, $5 credits, cpx21/cpx22
  • Pro: $50/month, $10 credits, cpx31/cpx32
  • Business: $100/month, $40 credits, cpx41/cpx42

Hetzner VPS Pricing (Current)

New Generation (cpx*2 series) – EU Locations

ServervCPURAMStorageEU MonthlyNotes
cpx2224 GB80 GB$6.99✅ Available
cpx3248 GB160 GB$11.99✅ Available
cpx42816 GB320 GB$21.99✅ Available

Old Generation (cpx*1 series) – US Locations

ServervCPURAMStorageUS MonthlyNotes
cpx2134 GB80 GB$9.99⚠️ Deprecated in EU
cpx3148 GB160 GB$17.99⚠️ Deprecated in EU
cpx41816 GB240 GB$33.49⚠️ Deprecated in EU

Recommendation: Use EU locations (fsn1, nbg1, hel1) with new cpx*2 series for best pricing.

Claude API Pricing (Pass-Through)

We pass through AI costs at cost. No markup on credits.

ModelInputOutputTypical Turn
Claude Opus 4.5$15/MTok$75/MTok~$0.075

With $10 credits: ~133 turns/month average

Transaction Costs

Stripe: 2.9% + $0.30 per transaction

Price PointStripe FeeNet Received
$20/month$0.88$19.12
$25/month$1.03$23.97
$50/month$1.75$48.25
$100/month$3.20$96.80

Tier Analysis

Option A: Current Pricing ($25/$50/$100)

TierPriceVPS (EU)CreditsStripeMargin
Starter$25$6.99$10$1.03$6.98 (28%)
Pro$50$11.99$20$1.75$16.26 (33%)
Business$100$21.99$40$3.20$34.81 (35%)

Option B: $20 Starter Pricing ($20/$50/$100)

TierPriceVPS (EU)CreditsStripeMargin
Starter$20$6.99$10$0.88$2.13 (11%)
Pro$50$11.99$20$1.75$16.26 (33%)
Business$100$21.99$40$3.20$34.81 (35%)

$20 Starter Viability Analysis

Can we do $20/month? Yes, but margins are thin.

Breakdown:

  • Customer pays: $20.00
  • Stripe takes: -$0.88
  • VPS costs: -$6.99
  • Credits included: -$10.00
  • Net margin: $2.13/month (10.6%)

Considerations

Pros:

  • Clean $20 price point (psychological)
  • Lower barrier to entry
  • Pro/Business tiers have healthy margins
  • Extra credit purchases have margin too

Cons:

  • Very thin margin on Starter
  • No buffer for support time
  • One bad month (chargebacks, etc.) wipes margin

Alternative: Reduce Starter Credits

ScenarioPriceVPSCreditsMargin
$20 / $10 credits$20$6.99$10$2.13 (11%)
$20 / $5 credits$20$6.99$5$7.13 (36%)
$20 / $7 credits$20$6.99$7$5.13 (26%)

$20 with $5-7 credits gives healthier margins while keeping the price point.

Other Costs (Not Monthly)

  • Domain registration: ~$12-15/year (passed to customer with markup)
  • Domain renewal: ~$12-15/year (passed to customer with markup)
  • SSL: Free (Let’s Encrypt)
  • Setup/provisioning: Automated (no marginal cost)

Recommendation

For $20 Starter tier to work profitably:

  1. Use EU servers (cpx22 @ $6.99)
  2. Consider reducing included credits to $5-7
  3. OR accept thin margins on Starter, knowing Pro/Business have healthy margins
  4. Extra credit purchases provide additional margin

The $20 price point is ACHIEVABLE but requires either:

  • Lower included credits, OR
  • Acceptance of ~10% margin (viable if volume is high)

Single source of truth: Update this document when costs change.