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CostVerified 45 days ago

Watch Token Costs

A looped agent can burn tokens fast. Set budgets and use cheaper models for iteration.

The principle

Agent loops are invisible money fires. A task that looks free can cost $5. A task that looks cheap can cost $50. Cost awareness is part of the operator's job.

Why it matters

Frontier models charge per token. Agents send context back and forth repeatedly, often with large code files attached. Without a budget, a single debugging session can exceed a restaurant dinner in API spend.

How to apply it
  1. Set a daily or weekly budget. Use provider dashboards or tools like Langfuse to track spend.
  2. Use cheaper models first. Start with a fast, cheap model. Escalate to an expensive one only when needed.
  3. Limit context. Don't paste entire codebases into every prompt. Send only relevant files.
  4. Cap retries. A stuck agent can loop forever. Set max iteration counts.
  5. Review weekly. Look for spikes and patterns. One expensive workflow is worth optimizing.
Red flags
  • You don't know what you spent this week.
  • Every task uses the most expensive model by default.
  • The agent re-reads the same large files in every turn.
  • You are surprised by monthly bills.
Quick win

Set a $10 daily budget in your LLM provider dashboard and turn on spend alerts. The first alert will teach you more than any article.

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