Learn to calculate and estimate token costs for AI projects.
Budget your AI applications effectively.
Understanding Pricing
AI models charge per 1,000 or 1,000,000 tokens.
Cost Formula
Total Cost = (Input Tokens × Input Price) + (Output Tokens × Output Price)
Example Calculation
Input: 1,000 tokens at $0.14/1M = $0.00014
Output: 500 tokens at $0.28/1M = $0.00014
Total: $0.00028 per request
Monthly Projection
10,000 requests/day × $0.00028 = $2.80/day
Monthly: $84/month
Python Calculator
def calculate_cost(input_tokens, output_tokens, model=’deepseek’):
prices = {‘deepseek’: {‘in’: 0.14/1M, ‘out’: 0.28/1M}}
return input_tokens * prices[model][‘in’] + output_tokens * prices[model][‘out’]
Cost Optimization Tips
✅ Use smaller models when possible
✅ Implement caching
✅ Optimize prompts
Conclusion
Understanding costs helps you budget AI projects effectively!