How do I calculate AI API costs?

The formula is: Monthly Cost = (Input Tokens × Input Price per 1M × Requests × Days) + (Output Tokens × Output Price per 1M × Requests × Days). For example, with GPT-5 at $1.25/M input and $10/M output: 1,500 input tokens × 800 output tokens × 500 requests/day × 30 days = $6.25/month. Use APIpulse's free calculator for instant estimates across 129 models.

What is the cheapest AI API in 2026?

DeepSeek V4 Flash at $0.22/M input and $0.66/M output is the cheapest quality model. DeepSeek V4 Pro ($0.66/$1.98) offers the best quality-to-cost ratio. For premium quality on a budget, Grok 4.3 ($1.25/$2.50) is 75% cheaper than GPT-5 on output tokens. Google Gemini Flash Lite ($0.10/$0.40) is the absolute cheapest but with lower quality.

How much does GPT-5 cost per month?

GPT-5 costs $1.25/M input tokens and $10/M output tokens. For a typical chatbot workload (1,500 input + 800 output tokens per request, 500 requests/day), GPT-5 costs about $6.25/month. For heavy usage (5,000 requests/day), it costs about $62.50/month. GPT-5 Mini at $0.40/$1.60 can reduce costs by 60-70% for simpler tasks.

How can I reduce my AI API costs?

5 proven strategies: 1) Use multi-model routing (budget models for simple tasks, premium for complex). 2) Implement prompt caching to reduce input tokens. 3) Set max_tokens limits to control output costs. 4) Use batch processing for non-time-sensitive tasks. 5) Monitor usage with APIpulse's cost calculator to catch overspending early. These strategies combined can reduce costs by 40-70%.

What is a Cost Efficiency Score?

APIpulse's Cost Efficiency Score is an A-F grade that shows how cost-efficient your current AI API setup is. It compares your current model cost to the cheapest available alternative for the same workload. An A grade (90%+ efficiency) means you're already using a cost-effective model. An F grade (<30% efficiency) means you could save 70%+ by switching. The calculator shows your score instantly with a visual progress bar and specific savings recommendations.