A plain-English explanation of LLM API cost logic, variable meanings, and edge cases that confuse most users.
Most “wrong answers” are input problems, not calculator problems. A quick pass through the LLM API cost logic makes it easier to enter the right numbers.
If you can explain how input tokens, output tokens, and requests per user connects to monthly cost and cost per user, you’re unlikely to be fooled by a fragile scenario.
The calculator translates your inputs into a consistent model so you can compare scenarios with the same rules.
Change one variable at a time and confirm the output direction matches intuition.
Most sensitivity lives in 2–3 fields: input tokens, output tokens, and requests per user.
When the result surprises you, simplify the scenario and confirm each field definition.
Avoid impossible combinations (negative values, unrealistic rates, mismatched time horizons).
If the outcome is close to your threshold, run a conservative downside case before deciding.