What Is AI API Cost?
When you use AI coding agents like Cursor, Claude Code, Devin, or Codex CLI to build software, every interaction with the underlying language model costs money. These tools make API calls to large language models (LLMs) such as GPT-4o, Claude Sonnet, Gemini Pro, or DeepSeek, and each call is billed based on the number of tokens processed.
Tokens are the fundamental unit of text that LLMs process. Roughly speaking, one token equals about 3-4 characters of English text, or about 0.75 words. Every prompt you send (input tokens) and every response the model generates (output tokens) is counted and billed separately, with output tokens typically costing 3-5x more than input tokens.
The hidden cost driver in AI-assisted coding is context accumulation. Unlike a simple chatbot conversation, coding agents need to read your entire codebase, understand file relationships, track previous changes, and maintain conversation history. As your project grows, input tokens per turn snowball dramatically — a 15,000 LOC project might require 50,000-200,000 input tokens per turn just for context.
How We Calculate Your Estimate
Our estimation model accounts for the unique way AI coding agents consume tokens. Rather than a simple “tokens per line of code” calculation, we model the per-turn context growth that makes AI coding expensive.
- Project scope determines the base lines of code (LOC) your agent needs to produce, from ~500 LOC for a micro app to ~50,000+ for an enterprise system.
- Feature complexity adds a 15% overhead per feature integration (authentication, database, payments, etc.) because each feature requires additional context and iteration.
- Agent tooling type dramatically affects token usage. A web UI copilot uses ~1x the base turns, while an autonomous sandbox agent like Devin uses ~8x due to containerized environments and extreme context overhead.
- Quality level multiplies iteration depth. Draft quality (1x) accepts first output, while enterprise TDD (2x) requires strict linting, full test suites, and edge case handling.
For each turn, we calculate input tokens as: base context window + codebase overhead + accumulated growth per turn, capped at the model's context window limit. This models the real-world behavior where each successive agent turn reads more code, more conversation history, and more system prompts. We then multiply total tokens by each model's published per-million-token pricing to produce the cost estimate across 40+ models from 9 providers.