Beginner
AI Pricing Explained
Tokens, input vs output, blended cost and subscriptions vs API. How an AI bill is actually calculated.
Two prices per model
API pricing is quoted in US dollars per million tokens, with separate rates for input (what you send) and output (what the model writes). Output is usually three to five times more expensive because generating text is slower than reading it.
Blended price
To rank models fairly we use a blended figure that assumes 75% input and 25% output, a typical mix for chat and coding. The formula is 0.75 x input price + 0.25 x output price. If your workload is output-heavy, weight the output column instead.
Subscriptions vs API
Consumer apps (ChatGPT Plus, Claude Pro, Google AI Pro) charge a flat monthly fee with usage limits. The API charges per token with no cap. Individuals usually get better value from a subscription; teams building products pay per token. The AI Tracker shows both side by side in your local currency.
