Iteration Layer vs Reducto
Reducto also outputs markdown — the key differences are the image description field, EU hosting, and per-request pricing.
Why developers switch from Reducto
Reducto outputs markdown from US servers and charges per page — without an image description field.
Image description field
When you convert an image file, we return both the OCR-extracted markdown and a natural language description of what the image shows. Reducto returns markdown text extraction without semantic image understanding.
EU hosting with GDPR compliance
Reducto is US-based. We process all documents on EU servers with zero data retention and a Data Processing Agreement available for every customer.
Simple per-page pricing
Both charge per page, but Reducto's pricing varies by model and feature tier. We charge 1 credit per page — same rate for every document type, no complexity surcharges.
Feature-by-feature comparison
We went through the docs so you don't have to. Here's how every feature compares — including the ones where we're not the better choice.
| Feature | Iteration Layer | Reducto |
|---|---|---|
| Markdown output |
Clean markdown
Returns well-structured markdown with preserved headings, tables, and lists from any document |
Clean markdown
Returns clean markdown with strong layout analysis and RAG-optimized chunking support |
| Image description |
Yes
Returns a natural language description of image content alongside OCR markdown for image files |
No
Text extraction only — no semantic description of visual image content |
| Table preservation |
Markdown tables
Tables are extracted and rendered as clean markdown table syntax |
Advanced
Good handling of multi-column layouts and complex table structures |
| Supported input formats |
40+ formats
Process 40+ formats — PDF, Office, EPUB, RTF, LaTeX, email, Jupyter, images, and more — in a single API endpoint |
PDF, images, Office
Supports PDF, images, and various document formats |
| RAG chunking |
Plain markdown
Returns clean markdown — chunk it yourself or pass it directly to your pipeline |
Built-in
Strong document chunking capabilities designed for RAG pipeline ingestion |
| MCP server |
Yes
MCP server available for integration with AI agents and assistants |
No
No MCP server available |
| EU hosting |
EU only
All processing happens exclusively on EU-hosted servers |
US-based
Processing infrastructure is located in the United States |
| Pricing model |
Per page
Simple, predictable per-page pricing |
Per page
Per page processed with pay-as-you-go pricing and volume discounts |
| Infrastructure required |
None
Fully managed API with no deployment or infrastructure to manage |
None
Fully managed cloud API with no infrastructure to manage |
| GDPR / Data privacy |
Zero retention
No files or results stored beyond temporary 90-day logs |
US-based processing
Documents are processed through Reducto's managed API |
| Data used for training |
Never
Your data is never used to train or improve AI models — guaranteed for all plans |
Unclear
Public pages do not surface a no-training guarantee for customer data |
Pricing
Start usage-based. Switch to a subscription when your volume becomes predictable.
Usage-based
Graduated pricing. Your effective rate decreases automatically as monthly usage grows.
- No monthly commitment
- Pay only for credits used
- Automatic volume discounts as usage grows
Predictable volume
Fixed recurring credit packs with lower effective credit prices for steady usage.
- Lower effective per-credit prices
- Fixed recurring credit packs
- Predictable monthly budget
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