Investing
Output price from the input multiple
Most providers quote the output rate as a multiple of the input rate. Multiplying by the multiple gives the output price in the same per-million units.
The Formula
output price = input price x output multiple
Most providers quote the output rate as a multiple of the input rate. Multiplying by the multiple gives the output price in the same per-million units.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| p_in | Input price | currency | Cost per million prompt tokens. |
| m | Output multiple | multiplier | How many times the input rate output costs. |
| p_out | Output price | currency | Cost per million completion tokens. |
What Each Symbol Means
p_incurrency
Input price
Cost per million prompt tokens.
mmultiplier
Output multiple
How many times the input rate output costs.
p_outcurrency
Output price
Cost per million completion tokens.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate ai api costs page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate AI API Costs, filed under Finance. Every number the guide produces comes from substituting into this one line.