// Interactive Explainer · The Best Blog Ever

Every token is billed.
Output is billed 4–5×.

LLM APIs charge for what you send and what the model says back — at very different rates. Watch one call get billed, then run the audit that tells you which half of your bill to attack first.

Input billed$0.00illustrative rate: $1 / M tokens
Output billed$0.00illustrative rate: $5 / M tokens
The asymmetrysequential generation costs more compute

Rates shown are illustrative shapes, not quotes — see sources below. Tap any element in the sections that follow for detail.

01 · The anatomy

One call, two prices

Everything you send bills at the base rate. Everything the model says back bills at the premium. Click any layer.

Input · billed at base rate
Output · the premium product
02 · The asymmetry

Same million tokens, different bill

Providers price the compute difference between reading and generating. The ratio holds across tiers.

input rate
$1
output rate
$5

Illustrative $1 / $5 per million tokens. Published tiers pair rates like $3/$15 and $5/$25 — the shape, not the numbers, is the constant.

03 · The compounding

Why long chats get expensive

The whole input stack is resent — and re-billed — on every turn. Click any bar.

12345678910
system prompt — constant, resent every turn accumulated history — grows every turn
04 · The decision

The Asymmetry Audit

One division tells you which half of the bill to attack first. Drag your output share of spend.

S = (Tout × Pout) ÷ (Tin × Pin + Tout × Pout)
0 · input-heavy 1 · output-heavy 0.5
0.33input-dominated
S < 0.5 — attack input first

Compress what you send

  • Prompt caching — stable prefix first
  • Compress the system prompt
  • Summarize older history
  • Surgical RAG — rerank, inject less
S > 0.5 — constrain generation first

Cap what comes back

  • Cap max_tokens per call
  • Terse, structured output formats
  • Cut filler from response templates
  • Then recompute S — the priority flips

The expensive token type is not automatically the dominant cost — volume skew can beat price skew. That's what S catches.