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Glossary
Concept

Token

Also known as: AI token, LLM token.

Last updated: May 24, 2026

What is Token?

Definition

A token is the basic unit of text that an LLM reads and generates — typically 3-4 characters or roughly 0.75 of an English word. Most AI APIs bill by token count (separate prices for input tokens consumed and output tokens generated), and every model has a maximum token budget per request (its context window).

In plain English

Tokens are created by a tokenizer that breaks text into subword units. Common English words ('the', 'and', 'is') are one token. Rare words and non-Latin scripts can be many tokens. Code is typically 0.5 tokens per character. Most LLM pricing is structured per million tokens for input and a higher per million for output (output is more expensive because it takes more compute to generate). Understanding tokens matters for cost control: shorter prompts and constrained outputs (e.g. 'reply in 100 words') directly reduce spend.

Example

The sentence 'The quick brown fox jumps over the lazy dog' is 9 words but 10 tokens in GPT's tokenizer. A 2,000-word blog post is roughly 2,700 tokens of output. At GPT-5.2 pricing ($10 per 1M output tokens), generating that blog post costs about $0.027.

Token in Vincony

Vincony uses a credit-based pricing model that abstracts token math — you see 'credits' per generation, not raw token counts. The Credits Calculator estimates what your typical usage will cost.

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Related terms & guides

Context windowLarge language modelModel routingHow to reduce AI costs (guide)Insights → Spend Optimizer tab
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