Tokens, Cost and Latency

Reference: Tokens, Cost and Latency · Beginner to Intermediate

Token counts set the cost and delay of each call. This part covers cost arithmetic, latency models, and ways to cut tokens while keeping answers.

Learning path through the tokens, cost and latency topics.

Suggested order. Cost first, then latency, then token reduction.

The three topics

Topic	Lessons	Description	Time
Cost Arithmetic	4	Cost arithmetic for AI calls with EXAMPLE prices: formula, two jobs, monthly totals, sensitivity.	30 min
Latency and Throughput	4	Time to first token, decode speed, and a simple latency model with examples.	30 min
Reducing Tokens	4	Reuse, summaries, retrieval and trimmed context that cut token cost without losing answers.	30 min

Check yourself How is the cost of one call estimated?

Input tokens times the input rate plus output tokens times the output rate. The Cost Arithmetic topic works through the formula and two jobs.