What are LLM Tokens and API Prices? (Beginner Friendly)

📬 Get good at automations: https://www.gotsheet.xyz/c/gotsheet-youtube If you’ve ever wondered how OpenAI (or any AI company) charges for usage—or what “tokens” actually are—this video breaks it all down in plain English. Learn how much ChatGPT costs to run, why API pricing is based on tokens instead of words, and how to not accidentally rack up a huge bill when building apps or running prompts. 💸 We’ll cover: ➡️What tokens really are (with live examples) ➡️How much different models cost (GPT-4.1, Claude, Gemini) ➡️The hidden differences between input, cached input, and output ➡️Why ChatGPT Plus isn’t truly unlimited ➡️How to estimate and minimize costs when using the API 🛠️ Tools I used: https://www.gotsheet.xyz/c/business-tech-stack _______________________________________________ 📲 Find me https://eamonncottrell.com on LinkedIn: https://www.linkedin.com/in/eamonncottrell/ on Twitter: https://twitter.com/EamonnCottrell 📅 Book 1 on 1 consulting with me - https://cal.com/eamonncottrell _______________________________________________ 📍Chapter Time Markers: 00:00:00 - LLM API Pricing 00:00:26 - ChatGPT Plus Usage Limits 00:01:25 - What is API Pricing? 00:02:35 - input, cached input and output prices 00:04:06 - different pricing per llm model 00:05:46 - LLM Tokens - What are they? 00:07:31 - LLM Token Calculator 00:09:28 - Claude API comparison 00:11:01 - Automate your business