Glossary · Updated Sep 2, 2026

Token

A unit of text, roughly three-quarters of an English word, that models read and generate and that many providers bill by.

Definition

Tokenisation splits text into pieces such as words, subwords, or characters. Models process and produce tokens, so limits and prices are stated in tokens: a context window of 200,000 tokens is roughly 150,000 English words, and API pricing is often quoted per million input and output tokens. Languages with non-Latin scripts frequently use more tokens per word.

Why it matters when choosing a tool

Token counts drive both cost and what fits in context, so estimating them helps budget API usage and choose plans.

Where you will meet it

AI Coding & Development, AI Assistants

Related terms

Context window · Usage-based pricing and credits · API access

Tools where this matters

Reviewed products in the related categories