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Interactive AI guide

Token Cost Loop

By Kai Bergin

The Conversational Loop

Every turn rebuilds the packet. Rules, tools, files, history, reasoning, and the visible answer all stack before the next send starts the loop again.

Load rules

System prompts and developer instructions enter first. The counter is already moving.

Add tools

Skills, schemas, and connector descriptions join the prefix as reusable behavior.

Attach evidence

Files, images, transcripts, and retrieved snippets become tokenized context.

Replay prior turns

Previous messages return so the model can remember what happened last turn.

Reason inside

Hidden planning and verification adds output tokens before an answer appears.

Answer outside

The visible response lands on top of the stack, but the loop is not finished.

History for next loop

The answer becomes context. On the next send, it is loaded back into the packet.

Cost stacks as the loop repeats rules + tools + files + history + reasoning + answer, then history again

Run the Cost Loop

The visible message is only one layer. System prompts, skills, files, multimodal input, cache, and reasoning are rebuilt into the next paid turn.

Token cost chat 1
Context: 0
Cost: €0.0000
Secure instruction document representing the system prompt
System prompt 0 prompt tokens
Public prompt example

Model selection loads a provider prompt cartridge.

The system prompt is hidden setup. It tells the model how to behave before the user message is read, and those tokens sit inside the input context.

Cost impact Loaded every turn
Loading prompt preview...
Source file
Reusable code and instruction files representing skills files

Skills files are reusable instructions and tool playbooks. Loading more of them gives the assistant abilities, but each file adds prompt tokens.

Cost impact 0 tokens
Images being converted into model-readable blocks

Multimodal input means screenshots, photos, or visual references. The model reads them as visual tokens before it can answer.

Cost impact 0 tokens
Stacked uploaded documents entering a context packet

Uploaded files are parsed into pages, chunks, or retrieved snippets. Useful parts still need to fit into the prompt packet.

Cost impact 0 tokens
Visible chat
User

Compare three vendor contracts and explain the risk.

Loading packet...
Assistant

The highest risk is the liability cap. Vendor B limits damages too tightly, Vendor C has vague termination language, and Vendor A is the safest if the indemnity clause is accepted.

Loading hidden work...
Answer output 620 answer tokens
Extra context added 0 tokens
Previous turns loaded: 0
Model work area

Reasoning and cache controls

Reasoning is hidden model work: planning, checking, and comparing candidate paths before the visible answer is written.

Selected hidden work 0 tokens
Reasoning controller 1.3x

Higher effort spends more hidden output tokens to explore paths, test assumptions, and reduce shallow answers.

Cache state Prefix pricing

Cache means a repeated prompt prefix can be reused at a lower input rate when the next loop sends similar instructions and context.

Input context 0

Prompt, messages, files, and image tokens.

Reasoning work 0

Hidden tokens before the visible answer.

Visible answer 0

The response tokens on screen.

Cache reduction 0

Selected cache discount from the repeated prefix.

Turn cost €0.0000

Calculated from used tokens.

Anthropic

Claude Sonnet 5 rates

Rates are per 1M tokens and converted to euros. Reasoning is counted as output.

Input
€0.00
Cached
€0.00
Output
€0.00
Breakdown
€0.0000

Pricing snapshot checked July 8, 2026: OpenAI, Anthropic, Gemini. USD prices converted with ECB rate: €1 = $1.1404.

Rules for reading token cost

Use these mental shortcuts when a chat, agent, or multimodal workflow suddenly feels expensive.

Rules are rent.

System prompts and skill files are useful, but every loaded instruction needs room.

History is replay.

Long conversations often re-send enough prior context to keep the next answer coherent.

Files are not free.

Uploads must be parsed, chunked, retrieved, or summarized before they can help.

Vision has weight.

Images and other modalities become model-readable units, not just tiny thumbnails.

Reasoning is output.

More effort can improve answers, but it adds hidden generated tokens.

Cache is a coupon.

Caching can lower the bill for repeated prefixes. It does not erase the context.