AI Tokenomics in a Minute
Input vs Output Tokens
Why input and output tokens are priced and constrained differently in coding-agent workloads.
In one sentence
Input tokens are what you send to the model; output tokens are what the model generates—often billed at different rates and driven by different behaviors.
Why it matters
Agent sessions can be input-heavy (big context) or output-heavy (long patches and explanations). Optimizing the wrong side wastes money.
How it works
- Count prompt, files, and tool results as input (subject to product rules).
- Count completions—including code and chain-of-thought style outputs when billed—as output.
- Compare unit prices: output is frequently more expensive per token.
- Reduce input with caching/compaction; reduce output with tighter instructions and less narration when appropriate.
Example
A turn that re-sends a 200k-token repo summary and asks for a three-line fix is input-dominated. A turn that asks “rewrite the module and explain every line” is output-dominated.
What this proves
Provider usage breakdowns prove how many input vs output tokens were billed for a request or session.
What this does not prove
A high input share does not prove the context was necessary. A low output share does not prove the change was high quality.
Last reviewed 2026-09-06. Title for citation: AI Tokenomics in a Minute: Input vs Output Tokens.