How LLM Tokenization Works

Understanding how Large Language Models process text is crucial for optimizing costs and performance. This guide explains the tokenization process, why it matters, and how to use our tool effectively.

The Tokenization Process

Input Text
Tokenization
Token IDs
Model Processing

Step 1: Text Input

You provide text to the LLM - this could be a prompt, a document, code, or any other content. The model doesn't process this text directly as characters or words.

Input: "Hello, how are you today?"

Step 2: Tokenization

The tokenizer breaks your text into smaller units called tokens. These tokens can be whole words, parts of words (subwords), or even individual characters, depending on the tokenization algorithm.

Example Tokenization:

Hello , how are you today ?
Result: 7 tokens

Step 3: Token IDs

Each token is converted to a unique numerical ID from the model's vocabulary. These IDs are what the model actually processes.

Token IDs: [9906, 11, 703, 389, 345, 1909, 30]

Step 4: Model Processing

The model processes these token IDs through its neural network layers to generate a response, which is then converted back to human-readable text.

Why Token Counting Matters

Cost Management

LLM providers charge per token, not per word or character. Knowing your token count helps you estimate and control costs accurately.

Example: GPT-4 costs $0.03 per 1K input tokens. A 5,000 token prompt costs $0.15, while a 50,000 token prompt costs $1.50.

Context Limits

Each model has a maximum context window (e.g., 8K, 32K, 128K tokens). Exceeding this limit causes errors or truncation.

Example: GPT-3.5 Turbo has a 16K token limit. Input (10K) + Output (8K) = 18K tokens would exceed the limit.

Performance Optimization

Shorter prompts process faster and cost less. Understanding tokenization helps you write more efficient prompts without sacrificing quality.

Tip: Remove unnecessary words, use abbreviations where appropriate, and structure prompts efficiently.

Scaling Planning

When building applications, accurate token estimates help you forecast costs and choose the right model for your budget.

Example: 1M API calls × 1K tokens each = 1B tokens. At $0.50/1M tokens = $500 monthly cost.

Token Counting Factors

What Affects Token Count?

Language & Characters

Different languages and character types tokenize differently:

  • English: ~1 token per word on average
  • Spanish/French: Slightly more tokens due to accents and longer words
  • Chinese/Japanese: Each character is often 2-3 tokens
  • Code: Varies by language; Python is generally efficient
  • Special characters: Emojis and symbols can be 1-4 tokens each
Word Frequency

Common words vs. rare words:

  • Common words: "the", "is", "and" = 1 token each
  • Rare words: "antidisestablishmentarianism" = 6-8 tokens
  • Technical terms: Often split into multiple tokens
  • Proper nouns: May be 1 token if common, or split if rare
Whitespace & Formatting

Spaces, newlines, and formatting affect tokenization:

  • Spaces: Often included with the following word
  • Multiple spaces: Each space may be a separate token
  • Newlines: Usually 1 token each
  • Indentation: Each level adds tokens
  • Markdown/HTML: Tags and formatting add extra tokens
Model-Specific Tokenizers

Different models use different tokenizers:

  • GPT-4: cl100k_base encoding (~100K vocabulary)
  • GPT-3.5: cl100k_base encoding (same as GPT-4)
  • Older GPT-3: p50k_base encoding (~50K vocabulary)
  • Gemini/Llama: SentencePiece (different token boundaries)
The same text may have different token counts across different models!

Using Our Tokenizer Tool

1

Select Your Model

Choose the LLM model you're using or planning to use. This ensures accurate token counting with the correct tokenizer.

2

Input Your Text

Enter your prompt, document, or any text you want to analyze. You can input up to 100,000 characters.

3

Set Output Range

Specify minimum and maximum expected output tokens. This helps calculate cost ranges for complete API calls.

4

View Results

Click "Calculate" and instantly see token counts, costs, visualizations, and model comparisons.

Understanding the Results

Token Count

The exact number of tokens in your input text, calculated using the selected model's tokenizer.

Token Visualization

See your text broken down into individual tokens with highlighting. Toggle between token text and token IDs to understand how the tokenizer processes your input.

Cost Breakdown

Detailed cost calculation showing input cost, output cost range, and total cost. Includes bulk estimates for 100, 1K, 10K, and 100K requests.

Context Usage

Visual indicator showing what percentage of the model's context window you're using. Helps prevent exceeding limits.

Model Comparison

Compare costs across all available models for your specific input. See potential savings by switching models.

Best Practices

Pro Tips for Token Optimization

  • Test your prompts before deploying to production
  • Remove unnecessary whitespace and formatting
  • Use abbreviations where context allows
  • Consider using cheaper models for simple tasks
  • Monitor token usage in production to optimize costs
  • Use our bulk estimates to forecast scaling costs

Common Questions

Why do different models show different token counts?

Each model family uses its own tokenizer with different vocabularies and algorithms. GPT-4 uses tiktoken's cl100k_base, while Gemini uses SentencePiece. The same text will tokenize differently across these systems.

Is the token count exact or an estimate?

For OpenAI models, we use the official tiktoken library, so counts are exact and match API billing. For other models, we use the best available approximation based on their tokenization methods.

Do you store my text?

No. All tokenization happens in real-time on our server, and your text is immediately discarded after processing. We never store user input. See our Privacy Policy for details.

How often are prices updated?

We monitor LLM provider pricing and update our database regularly. If you notice outdated pricing, please contact us at [email protected].

Ready to Start Optimizing?

Use our tokenizer to analyze your prompts, compare models, and optimize your LLM costs today.