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OpenAI API Pricing Explained
OpenAI charges per million tokens (MTok) for both input (your prompt) and output (model response) separately.
Cost = ((Input Tokens × Input Rate) + (Output Tokens × Output Rate)) ÷ 1,000,000
Current OpenAI Model Pricing (2025)
- GPT-4o mini — $0.15 input / $0.60 output per MTok
- GPT-3.5 Turbo — $0.50 input / $1.50 output per MTok
- GPT-4o — $2.50 input / $10.00 output per MTok
- GPT-4 Turbo — $10.00 input / $30.00 output per MTok
How to Lower Your OpenAI Bill
- Use GPT-4o mini for simple tasks — it's 17x cheaper than GPT-4o
- Cache repeated system prompts when possible
- Batch requests using the Batch API for 50% discount on eligible workloads
- Set max_tokens to prevent unexpectedly long outputs
Frequently Asked Questions
Is GPT-4o the same as GPT-4?
No. GPT-4o ("omni") is a newer, faster, and cheaper model than GPT-4 Turbo while maintaining similar quality. For most use cases, GPT-4o is the better choice.
What counts as a token in OpenAI models?
Roughly 1 token = 4 characters of English text, or about ¾ of a word. "ChatGPT is great!" is approximately 6 tokens.