<- All terms

Cost per million tokens

The standard unit for LLM API pricing. Quoted separately for input and output, in USD per 1,000,000 tokens.

What it is

Providers quote two numbers, e.g. "$3.00 / $15.00 per 1M" meaning $3 per million input tokens and $15 per million output tokens. Your monthly bill is (input tokens / 1M x input price) + (output tokens / 1M x output price).

Why it matters

A single "price" is misleading because the input/output split varies 5x. Two models with the same blended token price can cost very different amounts for your specific workload.

Cost & infrastructure impact

The cheapest sticker price is rarely the cheapest for you. Model it: the monthly API cost calculator applies your traffic to every model at once.

Related concepts

Use it in Obolith

Last reviewed: 2026-09-01 · evergreen concept