An AI model's cost depends on the number of API calls, the model used, and the total tokens processed. Choosing an efficient model and managing token usage keeps costs low.
By Pawan Nayar · from the LLOS AI Learning record
An AI model's cost depends on the number of API calls, the model used, and the total tokens processed.
Choosing an efficient model and managing token usage keeps costs low.
A developer must count the total number of API calls. The developer then estimates the input and output tokens for each call. The developer multiplies these numbers by the AI model's price per token. This calculation provides a total cost estimate.
A developer needs to process 555 stories in two languages. This means 1,110 API calls. Each call uses about 500 input tokens and 400 output tokens. Using a low-cost model like Gemini 2.5 Flash, the total cost for all stories is less than $2.00. The developer achieves the goal without high expenses.
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An AI model's cost depends on the number of API calls, the model used, and the total tokens processed. Choosing an efficient model and managing token usage keeps costs low.