How Does OpenAI API Token Pricing Work?

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Asked By CuriousCat823 On

Hey everyone! I'm new to the OpenAI API and I'm trying to wrap my head around how the pricing works, especially regarding the 'Price per 1M tokens' model. I want to make sure I don't burn through all my tokens while testing, whether in the API or the playground. So, if I take the GPT-4.1 model, where the pricing is: Input: $2.00, Cached: $0.50, Output: $8.00, does that mean after using 1M tokens, I'd be charged a total of $10.50? Is there a specific webpage that explains this better? I haven't found one yet. Thanks for any clarification!

1 Answer

Answered By TokenTracker42 On

Think of tokens like words. For example, if you say, "Hi how are you?" that might use up 4 input tokens. When the AI responds, it uses output tokens, and if it needs prior context, those are cached tokens. When you're using the API, you'll get token usage in the response, which helps you keep track, so you won’t waste too many tokens while you experiment!

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