Iteration Layer vs Reducto
Reducto also outputs markdown — the key differences are the image description field, EU hosting, and per-request pricing.
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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.
Per-request pricing, not per-page
Reducto charges per page processed, so a 50-page report costs far more than a 2-page invoice. We charge a flat credit per conversion request regardless of page count.
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 |
PDF, images, Office
Process PDFs, images, and common Office formats 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 processed on US infrastructure with standard data policies |
Pricing
Start with free trial credits. No credit card required.
Developer
For individuals & small projects
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1,000 credits / monthThat's either: 1,000 image transformations 500 document generations 500 image generations 500 sheet generations 200 document extractions (5-page docs) 200 markdown conversions (5-page docs)
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All APIs included
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Free trial credits per API
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Email support
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Budget caps per key
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Optional auto top-up
Startup
Save 40%For growing teams
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5,000 credits / monthThat's either: 5,000 image transformations 2,500 document generations 2,500 image generations 2,500 sheet generations 1,000 document extractions (5-page docs) 1,000 markdown conversions (5-page docs)
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All APIs included
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Free trial credits per API
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Priority support
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Budget caps per key
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Optional auto top-up
Business
Save 47%For high-volume workloads
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15,000 credits / monthThat's either: 15,000 image transformations 7,500 document generations 7,500 image generations 7,500 sheet generations 3,000 document extractions (5-page docs) 3,000 markdown conversions (5-page docs)
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All APIs included
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Free trial credits per API
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Priority support
-
Budget caps per key
-
Optional auto top-up
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Free trial credits included. No credit card required.