OpenAI charges per token — understanding tokenization is essential for cost management.
What Is a Token?
- ~4 characters or ~0.75 words in English
- "ChatGPT is great" = 4 tokens
- 1,000 tokens ≈ 750 words ≈ 1.5 pages
Current Pricing (approx.)
- gpt-4o-mini: $0.15/1M input tokens, $0.60/1M output tokens
- gpt-4o: $2.50/1M input, $10/1M output
- text-embedding-3-small: $0.02/1M tokens
Cost Control Tips
- Count tokens before sending: use tiktoken library
- Set max_tokens to limit output length
- Use gpt-4o-mini for simpler tasks
- Cache repeated prompts
Reference:
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