Why a subscription plan has no fixed API-equivalent value
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It doesn't make sense to say a subscription plan is worth $ X in isolation. The way to think about subscriptions is that your monthly payment grants you some numbers of “credits”. Each (model, token type) combo consumes a different amount of credits. Because credit cost ratios can differ dramatically from API price ratios, the “value” of the same plan changes depending on what model and workload you’re running. Here’s how the API-equivalent value of the same $200/month Claude plan changes depending on the model and workload. (1/6)🧵
Explains why a flat $200 plan cannot be priced as a fixed dollar value. Credits burn at different rates per model and type, so the effective API-equivalent value shifts with your workload.
- token — The chunk of text a model reads and writes in — roughly three-quarters of a word — and the unit AI usage is billed in.
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