diff --git a/server/src/persistence/__tests__/database.test.ts b/server/src/persistence/__tests__/database.test.ts
index 0b3a397..d5c1499 100644
--- a/server/src/persistence/__tests__/database.test.ts
+++ b/server/src/persistence/__tests__/database.test.ts
@@ -53,7 +53,7 @@ describe('database', () => {
     openDatabase(dbPath);
     const version = getSchemaVersion();
     expect(version).toBe(CURRENT_SCHEMA_VERSION);
-    expect(version).toBe(1);
+    expect(version).toBe(2);
   });
 
   it('returns same db on multiple getDatabase calls', () => {
@@ -102,8 +102,24 @@ describe('database', () => {
     expect(result.journal_mode).toBe('wal');
   });
 
-  it('CURRENT_SCHEMA_VERSION is 1', () => {
-    expect(CURRENT_SCHEMA_VERSION).toBe(1);
+  it('CURRENT_SCHEMA_VERSION is 2', () => {
+    expect(CURRENT_SCHEMA_VERSION).toBe(2);
+  });
+
+  it('creates llm_call_log table in new databases', () => {
+    const dbPath = createTempDb();
+    openDatabase(dbPath);
+    const db = getDatabase();
+    const tables = db.prepare("SELECT name FROM sqlite_master WHERE type='table'").all() as { name: string }[];
+    expect(tables.map(t => t.name)).toContain('llm_call_log');
+  });
+
+  it('creates llm_tracking_enabled metadata in new databases', () => {
+    const dbPath = createTempDb();
+    openDatabase(dbPath);
+    const db = getDatabase();
+    const row = db.prepare("SELECT value FROM metadata WHERE key = 'llm_tracking_enabled'").get() as { value: string };
+    expect(row.value).toBe('1');
   });
 
   it('closeDatabase allows reopening', () => {
diff --git a/server/src/persistence/database.ts b/server/src/persistence/database.ts
index e7d8615..30acdc9 100644
--- a/server/src/persistence/database.ts
+++ b/server/src/persistence/database.ts
@@ -1,6 +1,6 @@
 import Database from 'better-sqlite3';
 
-export const CURRENT_SCHEMA_VERSION = 1;
+export const CURRENT_SCHEMA_VERSION = 2;
 
 let db: Database.Database | null = null;
 
@@ -102,6 +102,21 @@ CREATE TABLE IF NOT EXISTS inventions (
 
 CREATE INDEX IF NOT EXISTS idx_memory_events_entity ON memory_events(entity_id);
 CREATE INDEX IF NOT EXISTS idx_narration_events_tick ON narration_events(tick);
+
+CREATE TABLE IF NOT EXISTS llm_call_log (
+  id INTEGER PRIMARY KEY AUTOINCREMENT,
+  tick INTEGER,
+  template_name TEXT NOT NULL,
+  input_tokens INTEGER NOT NULL,
+  output_tokens INTEGER NOT NULL,
+  cost_usd REAL NOT NULL,
+  model TEXT NOT NULL,
+  retries INTEGER NOT NULL DEFAULT 0,
+  failed INTEGER NOT NULL DEFAULT 0,
+  timestamp TEXT NOT NULL
+);
+
+CREATE INDEX IF NOT EXISTS idx_llm_call_log_template ON llm_call_log(template_name);
 `;
 
 export function openDatabase(filepath: string): void {
@@ -118,6 +133,7 @@ export function openDatabase(filepath: string): void {
   const existing = db.prepare("SELECT value FROM metadata WHERE key = 'schema_version'").get() as { value: string } | undefined;
   if (!existing) {
     db.prepare("INSERT INTO metadata (key, value) VALUES ('schema_version', ?)").run(String(CURRENT_SCHEMA_VERSION));
+    db.prepare("INSERT INTO metadata (key, value) VALUES ('llm_tracking_enabled', '1')").run();
   }
 }
 
diff --git a/server/src/persistence/saveManager.ts b/server/src/persistence/saveManager.ts
index 6e2723d..2b9b8fd 100644
--- a/server/src/persistence/saveManager.ts
+++ b/server/src/persistence/saveManager.ts
@@ -28,8 +28,25 @@ export class SaveManager {
     openDatabase(this.filepath);
     const version = getSchemaVersion();
     if (version < CURRENT_SCHEMA_VERSION) {
-      // For now, just update the version number (migrations would go here)
       const db = getDatabase();
+      if (version < 2) {
+        db.exec(`
+          CREATE TABLE IF NOT EXISTS llm_call_log (
+            id INTEGER PRIMARY KEY AUTOINCREMENT,
+            tick INTEGER,
+            template_name TEXT NOT NULL,
+            input_tokens INTEGER NOT NULL,
+            output_tokens INTEGER NOT NULL,
+            cost_usd REAL NOT NULL,
+            model TEXT NOT NULL,
+            retries INTEGER NOT NULL DEFAULT 0,
+            failed INTEGER NOT NULL DEFAULT 0,
+            timestamp TEXT NOT NULL
+          );
+          CREATE INDEX IF NOT EXISTS idx_llm_call_log_template ON llm_call_log(template_name);
+        `);
+        db.prepare("INSERT OR IGNORE INTO metadata (key, value) VALUES ('llm_tracking_enabled', '1')").run();
+      }
       db.prepare(
         "UPDATE metadata SET value = ? WHERE key = 'schema_version'",
       ).run(String(CURRENT_SCHEMA_VERSION));