What is Token?
Updated July 21, 2026 · by Pedro
A token is a chunk of text an AI model counts for billing and context limits. Roughly 1 token ≈ 0.75 English words. Prompt tokens plus completion tokens equal your billable usage.
Why does this term matter for AI prompts?
Precise vocabulary reduces vague instructions. When you name token correctly in a brief, Claude, Cursor, and GPT spend fewer tokens guessing. Pair definitions with structure on AI prompt builder and cost math on prompt token cost.
More glossary terms
Full list: prompt engineering glossary.
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