OpenAI, a leading artificial intelligence research and deployment company, offers a variety of AI models that can be accessed via its API. It allows developers to integrate advanced capabilities like text generation, image generation, and semantic search into their applications.
The cost of using these models is based on the number of tokens processed, which includes both the input to and output from the API. To help users estimate the cost of their projects, OpenAI provides a pricing calculator.
Let’s discuss the details of the OpenAI API Pricing Calculator, explaining how it works, its key features, and how to use it effectively.
What’s OpenAI API Pricing
OpenAI API pricing is based on the concept of tokens. A token can be thought of as a piece of a word, with 1,000 tokens roughly equating to 750 words. The cost of using the API is calculated based on the number of tokens processed, both for the input data sent to the API and the output data received back.
Different models offered by OpenAI have different pricing structures. For instance, the GPT-4 Turbo model charges $0.01 per 1,000 tokens for input and $0.03 per 1,000 tokens for output. On the other hand, the GPT-3.5 Turbo model charges $0.0010 per 1,000 tokens for input and $0.0020 per 1,000 tokens for output.
Here’s a table showing OpenAI API Pricing:
| Model Name | Input Cost per 1K Tokens | Output Cost per 1K Tokens |
| GPT-4 Turbo (gpt-4-1106-preview) | $0.01 | $0.03 |
| GPT-4 Turbo (gpt-4-1106-vision-preview) | $0.01 | $0.03 |
| GPT-4 (gpt-4) | $0.03 | $0.06 |
| GPT-4 (gpt-4-32k) | $0.06 | $0.12 |
| GPT-3.5 Turbo (gpt-3.5-turbo-1106) | $0.0010 | $0.0020 |
| GPT-3.5 Turbo (gpt-3.5-turbo-instruct) | $0.0015 | $0.0020 |
| Assistants API (Code Interpreter) | $0.03 per session | N/A |
| Assistants API (Retrieval) | $0.20 per GB per assistant per day | N/A |
| Fine-tuning models (gpt-3.5-turbo) | $0.0080 | $0.0030 (Input usage), $0.0060 (Output usage) |
| Fine-tuning models (davinci-002) | $0.0060 | $0.0120 (Input usage), $0.0120 (Output usage) |
| Fine-tuning models (babbage-002) | $0.0004 | $0.0016 (Input usage), $0.0016 (Output usage) |
| Embedding models (ada v2) | $0.0001 | N/A |
| Base models (davinci-002) | $0.0020 | N/A |
| Base models (babbage-002) | $0.0004 | N/A |
| Image models (DALL·E 3) | N/A | $0.040 per image (1024×1024), $0.080 per image (1024×1792, 1792×1024) |
| Image models (DALL·E 3 HD) | N/A | $0.080 per image (1024×1024), $0.120 per image (1024×1792, 1792×1024) |
| Image models (DALL·E 2) | N/A | $0.020 per image (1024×1024), $0.018 per image (512×512), $0.016 per image (256×256) |
| Audio models (Whisper) | $0.006 per minute | N/A |
| Audio models (TTS) | $0.015 per 1K characters | N/A |
| Audio models (TTS HD) | $0.030 per 1K characters | N/A |
Please note that the costs for some models and tools are not per token, but per session, per GB per assistant per day, per image, per minute, or per 1K characters. Also, some tools are free until a certain date.
How to Use the OpenAI API Pricing Calculator
The OpenAI API Pricing Calculator is a tool that allows users to estimate the cost of their projects based on the number of tokens they expect to process. To use the calculator, users need to select the model they want to use and enter the expected word count. The calculator then provides an estimated cost based on these inputs.
For example, if a user wants to generate approximately 1,500 words of content using the GPT-4 8K API, they can use the following formula to estimate the cost:
Estimated Price = (Desired Number of Words/750) × (Cost per 1,000 Tokens)
This formula assumes that the number of words sent as prompts is equal to the number of words generated. However, OpenAI bills users based on the number of tokens sent in the prompt plus the number of tokens returned by the API. Therefore, a more accurate formula would be:
Estimated Price = (Number of Words Sent as Prompts × Cost per 1,000 Tokens/750) + (Number of Words Generated × Cost per 1,000 Tokens/750)
Using this formula, the estimated price for generating 1000 words using the GPT-4 8K API, with a prompt length of 100 words, would be approximately $0.084.
Best OpenAI API Pricing Calculators
Understanding and calculating the cost of using this OpenAI API pricing formula can be hard to understand for many. So, it is better to use online available OAI API pricing calculators. Here are the best options so far:
You can use the for instant calculations and convenience.
Conclusion
The OpenAI API provides access to cutting-edge AI capabilities, but at a price. Carefully evaluating integration costs using its token-based pricing model and optimizing usage based on application needs is key to ensuring value. Monitoring usage, selecting the right model, prompt engineering, output length limits, and caching can significantly reduce expenses. With some strategic planning, companies and developers can build innovative applications powered by OpenAI within budget constraints.
