AI model pricing is usually based on the number of input and output tokens processed by an API. When comparing models, it is important to look at both prices rather than comparing only one side of the token cost.

Input tokens represent the text and data sent to the model. Output tokens represent the response generated by the model. Depending on your application, one of these categories may account for most of your total API spending.

A model with a lower price per million input tokens is not necessarily cheaper for every workload. Applications that generate long responses may spend significantly more on output tokens, while applications with large prompts may spend more on input tokens.

What Should You Compare?

Input token price

Compare the cost of processing prompts and other data sent to the model. This is especially important for applications with large prompts or high request volumes.

Output token price

Compare the cost of generated responses. Output pricing can have a large impact on applications that generate long answers, summaries, or other substantial responses.

Token usage

Estimate how many input and output tokens each request uses. The same model can have very different costs depending on your application's token usage.

Request volume

Calculate how many requests your application makes per day or month. Higher request volume can quickly turn a small per-request cost into a significant API bill.

Estimate Your AI API Costs

Comparing token prices is useful, but your actual API bill depends on your request volume and token usage. Use our calculators to estimate the cost of your specific workload.

AI Cost Calculator LLM Cost Calculator Budget Calculator

Frequently Asked Questions

Which AI model is the cheapest?

The cheapest model depends on your workload because input and output token prices can differ between models. Compare both token prices and use the cost calculator with your expected usage.

Is a lower token price always better?

No. Price is only one factor when choosing an AI model. Your application may also depend on model quality, response speed, context size, reliability, and other capabilities.

How can I estimate my monthly AI API bill?

Estimate your requests per day and the average input and output tokens per request, then use the LLM Cost Calculator to calculate daily, monthly, and yearly API costs.