Cost Calculations

Calculation Methodology

• Base Tier Price: Fixed (e.g., $119 for Dedicated)
• Infrastructure Upgrade: Customer Price = Our Cost × 1.25 (added to base)
• Add-ons: Customer Price = Our Cost × 1.25
• Total: Sum of base + upgrades + add-ons
• Savings Comparison: Based on equivalent AWS RDS or similar managed DB pricing (~$140-280/month for base specs)

Example 1: Bootstrapped Startup

Scenario: A solo developer needs a production PostgreSQL DB for a SaaS app. Uses default Contabo infrastructure.

Calculation

1. Base: Dedicated Tier = $119 (includes management, backups, support)
2. Infrastructure: Contabo (default) – Our Cost = $10 → Customer Price = $0 add-on (included in base)
3. Add-ons: None
4. Total Monthly: $119

Invoice Breakdown

Base: Dedicated Tier                               $119.00
Infrastructure (Contabo): Our Cost $10 → Included    $0.00
Total:                                             $119.00
Savings vs. AWS:                                    $21.00

Our Margin: Base (89% after $10 infra + $1 overhead = $108 profit) + 25% on any future add-ons

Comparison: AWS RDS equivalent ~$140/month. Savings: $21/month (15% cheaper)

Example 2: EU SaaS Company

Scenario: A bootstrapped team in Europe needs GDPR-compliant hosting in Finland.

Calculation

1. Base: Dedicated Tier = $119
2. Infrastructure Upgrade: Hetzner – Our Cost = $10.65 → Customer Price = $13.31 (add-on: +$13.31)
3. Region Selection: EU (Finland) – Our Cost = $8 → Customer Price = $10
4. Total Monthly: $119 + $13.31 + $10 = $142.31

Invoice Breakdown

Base: Dedicated Tier                               $119.00
Infrastructure (Hetzner): Our Cost $10.65 → $13.31  +$13.31
Region (EU Finland): Our Cost $8 → $10             +$10.00
Total:                                             $142.31
Savings vs. AWS EU:                                $57.69

Our Margin: 25% on upgrades ($2.66) + 25% on region ($2) + base 89%

Comparison: AWS RDS EU ~$200/month. Savings: $57.69/month (29% cheaper)

Example 3: Growing Startup

Scenario: A high-traffic app needs scaling with Contabo default.

Calculation

1. Base: Pro Tier = $179
2. Infrastructure: Contabo (default) – $0 add-on
3. High Availability: Our Cost = $20 → Customer Price = $25
4. 2× Read Replicas: Our Cost = $20 → Customer Price = $25
5. Extra 200GB Storage: Our Cost = $4 → Customer Price = $5
6. Total Monthly: $179 + $25 + $25 + $5 = $234

Invoice Breakdown

Base: Pro Tier                                      $179.00
High Availability: Our Cost $20 → $25              +$25.00
2× Read Replicas: Our Cost $20 → $25               +$25.00
Extra 200GB: Our Cost $4 → $5                      +$5.00
Total:                                             $234.00
Savings vs. AWS:                                   $266.00

Our Margin: 25% on all add-ons + base 89%

Comparison: AWS with replicas ~$500/month. Savings: $266/month (53% cheaper)

Example 4: Healthcare Startup

Scenario: HIPAA-compliant setup with global reach.

Calculation

1. Base: Enterprise Tier = $299
2. Infrastructure Upgrade: AWS – Our Cost = $86 → Customer Price = $107.50 (add-on: +$107.50)
3. Compliance Package: Our Cost = $80 → Customer Price = $100
4. VPN Access: Our Cost = $12 → Customer Price = $15
5. Extra 300GB Storage: Our Cost = $24 → Customer Price = $30
6. Total Monthly: $299 + $107.50 + $100 + $15 + $30 = $551.50

Invoice Breakdown

Base: Enterprise Tier                               $299.00
Infrastructure (AWS): Our Cost $86 → $107.50       +$107.50
Compliance: Our Cost $80 → $100                    +$100.00
VPN: Our Cost $12 → $15                            +$15.00
Extra 300GB: Our Cost $24 → $30                    +$30.00
Total:                                             $551.50
Savings vs. AWS:                                   $398.50

Our Margin: 25% on all add-ons + base 90%

Comparison: AWS RDS + compliance ~$950/month. Savings: $398.50/month (42% cheaper)

Example 5: Enterprise CTO

Scenario: Brand-conscious team with global needs.

Calculation

1. Base: Pro Tier = $179
2. Infrastructure Upgrade: DigitalOcean – Our Cost = $48 → Customer Price = $60 (add-on: +$60)
3. Custom Monitoring: Our Cost = $50 → Customer Price = $62.50
4. Total Monthly: $179 + $60 + $62.50 = $301.50

Invoice Breakdown

Base: Pro Tier                                      $179.00
Infrastructure (DO): Our Cost $48 → $60            +$60.00
Custom Monitoring: Our Cost $50 → $62.50           +$62.50
Total:                                             $301.50
Savings vs. DO Managed:                            -$1.50

Our Margin: 25% on upgrades + 25% on monitoring + base 89%

Comparison: DigitalOcean Managed DB ~$300/month. Cost difference: +$1.50/month (similar pricing)

Formula Reference

For quick calculations:

Total = Base Tier + Σ(Infrastructure Upgrades × 1.25) + Σ(Add-ons × 1.25)

Our Margin = (Customer Price - Our Cost) / Customer Price × 100%

Cost Components by Provider

Transparency Commitment

Every invoice shows:

• Base tier cost
• Each infrastructure component with our cost and your price
• Each add-on with our cost and your price
• Total comparison to equivalent managed service
• Your monthly savings

Custom Quotes

For configurations not listed above:

1. Email jeremy@intentsolutions.io with your requirements
2. We'll provide exact provider costs + 25% markup
3. No hidden fees, no surprises
4. All quotes valid for 30 days

Last Updated: October 19, 2025
Version: 1.0