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TokenCalc.com

AI Prompt & API Cost Estimator

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Est. Input Tokens
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Words
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Characters

Usage Parameters

Expected Output Tokens / Request 500 tokens
Monthly Request Volume 10,000 requests
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Understanding Tokenization & API Cost Calculations

Large Language Models (LLMs) like OpenAI's GPT-5, Anthropic's Claude, and Google's Gemini do not process raw text directly—they parse text into sub-word units called tokens.

In standard English prose, 1 token is equivalent to approximately 4 characters or 0.75 words. API providers charge separately for Input Tokens (the prompt sent to the model) and Output Tokens (the generated completion response).

Current AI Model API Rates

Monthly Projection
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Frequently Asked Questions

How are output costs different from input costs?

Output tokens require continuous GPU inference processing to generate text sequentially, making output tokens 3x to 5x more expensive than prompt inputs across most AI providers.

What are reasoning tokens in o3 / GPT-5 models?

Reasoning models generate internal "chain-of-thought" tokens before returning an answer. These internal tokens are billed at standard output rates.

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