What is LLM API Costs?
LLM APIs charge per token for input and output. Learn how pricing works, what drives OpenClaw costs, and how to reduce AI API spend by 80-93%.
Definition
LLM API Costs
LLM API costs are the charges incurred when using large language model APIs like Anthropic Claude via OpenClaw, OpenAI GPT, or Google Gemini. Costs are typically calculated per token for both input (your prompt) and output (the model's response), with different rates for different models.
Why It Matters
Why You Should Care
AI API costs can scale rapidly with usage. A single complex prompt can cost several cents, and at scale — thousands of requests per day — costs can reach thousands of dollars monthly. For OpenClaw users, claw.zip reduces this spend by 80-93% through prompt compression and smart model routing.
How It Works
Under the Hood
LLM APIs charge based on two metrics: input tokens (your prompt) and output tokens (the model's response). Prices vary by model — for example, Claude Haiku is significantly cheaper than Claude Opus. Total cost = (input tokens × input price) + (output tokens × output price). Reducing input tokens through compression directly reduces costs.
Resources
Further Reading
Related Terms
Keep Learning
Token Counting
Token counting measures how many tokens are in a prompt or response. Learn why token counts matter for OpenClaw API costs and context windows.
Token Optimization
Token optimization reduces the number of tokens consumed by AI API calls. Learn techniques for minimizing token usage and OpenClaw costs.
AI Cost Reduction
Comprehensive overview of strategies to reduce OpenClaw API costs: compression, routing, caching, prompt engineering, and more.
AI Model Routing
AI model routing automatically selects the cheapest capable model for each query. Learn how it reduces OpenClaw costs without sacrificing quality.
See LLM API Costs in Action
Try claw.zip free and experience the difference for yourself.