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
- Set a daily or weekly budget. Use provider dashboards or tools like Langfuse to track spend.
- Use cheaper models first. Start with a fast, cheap model. Escalate to an expensive one only when needed.
- Limit context. Don't paste entire codebases into every prompt. Send only relevant files.
- Cap retries. A stuck agent can loop forever. Set max iteration counts.
- 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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