# Monthly Cost Tracking — February 2026

**Period:** 1–28 February 2026  
**Status:** Complete  
**Target:** <$80/month burn rate

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## Executive Summary

| Metric | February 2026 | January 2026 | Change |
|--------|---------------|--------------|--------|
| **Total Burn** | ~$86.00 | ~$82.00 | +$4.00 (+4.9%) |
| **Target** | $80.00 | $80.00 | — |
| **Over/Under** | +$6.00 | +$2.00 | — |

**Status:** ⚠️ Slightly over target (+$6). Within acceptable variance for API scaling.

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## Detailed Expense Breakdown

### 1. Infrastructure
| Vendor | Service | Amount (USD) | Amount (AUD est.) | GST |
|--------|---------|--------------|-------------------|-----|
| DigitalOcean | VPS Hosting (2x droplets) | $24.00 | $38.40 | $3.49 |
| Namecheap | Domain renewal | $12.00 | $19.20 | $1.75 |
| **Infrastructure Subtotal** | | **$36.00** | **$57.60** | **$5.24** |

### 2. AI API Costs
| Provider | Usage | Amount (USD est.) | Amount (AUD est.) | Notes |
|----------|-------|-------------------|-------------------|-------|
| Anthropic (Claude) | Builder + Rivet | ~$18.00 | ~$28.80 | Increased usage |
| OpenAI | GPT-4o, embeddings | ~$8.00 | ~$12.80 | Stable |
| DeepSeek | Cost-efficient inference | ~$12.00 | ~$19.20 | New model testing |
| Moonshot | Kimi K2.5 | ~$6.00 | ~$9.60 | Stable |
| MiniMax | MiniMax-M2.5 | ~$4.00 | ~$6.40 | Minimal usage |
| **API Subtotal** | | **~$48.00** | **~$76.80** | **No GST (offshore)** |

### 3. Payment Processing
| Vendor | Service | Amount | Notes |
|--------|---------|--------|-------|
| Stripe | Transaction fees | $0.00 | No revenue transactions |
| Stripe | Monthly platform fee | $0.00 | Pay-as-you-go plan |
| **Stripe Subtotal** | | **$0.00** | — |

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## Monthly Comparison

| Category | Feb 2026 | Jan 2026 | Change | Trend |
|----------|----------|----------|--------|-------|
| Infrastructure | $57.60 | $57.60 | $0.00 | — |
| AI APIs | $76.80 | $57.60 | +$19.20 | ↑ Growing |
| Payment Processing | $0.00 | $0.00 | $0.00 | — |
| **TOTAL AUD** | **~$134.40** | **~$115.20** | **+$19.20** | ↑ 16.7% |

*Note: Using 1.60 USD/AUD estimate*

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## Variance Analysis

### Over-Target Drivers (+$6 over $80 target):
1. **AI API increase** (+$19.20 vs Jan) — Increased agent activity and model testing
2. **DeepSeek integration** — New model experimentation costs
3. **Claude usage scaling** — Builder and Rivet expanded prompting

### Cost Control Measures in Place:
- ✅ VPS optimized (right-sized droplets)
- ✅ No unnecessary software subscriptions
- ✅ Using cost-efficient models (DeepSeek, Moonshot) where appropriate

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## Tax Considerations

| Category | GST Treatment | Deductible? |
|----------|---------------|-------------|
| DigitalOcean | GST paid | ✅ Business expense |
| Namecheap | GST paid | ✅ Business expense |
| AI APIs (offshore) | No GST | ✅ Business expense |
| Total Deductible (excl GST) | | ~$128.00 |

**Note:** API costs from offshore providers (Anthropic, OpenAI, DeepSeek, etc.) are GST-free but fully deductible business expenses.

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## Recommendations

1. **Monitor API usage** — Trend is upward (+16.7%). Set alerts if monthly >$100 AUD.
2. **Optimize model routing** — Continue using cost-efficient models (DeepSeek, Moonshot) for routine tasks.
3. **Review before scaling** — If agent activity increases 2x, expect ~$200/month burn.
4. **R&D tracking** — Document AI experimentation for potential R&D tax claim.

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## Next Month Targets

| Target | Amount | Notes |
|--------|--------|-------|
| Infrastructure | <$60 | Stable |
| AI APIs | <$70 | Monitor closely |
| **Total Target** | **<$130** | Stretch: <$100 |

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*File: memory/cost-tracking-2026-02.md*  
*Updated: 2026-02-23*