Agent Cost Modeling

Agent Cost Modeling

Token math beats price-list math. Model your cost per task, not per call.

A model that costs $3/1M tokens is cheap until your agent burns 80k tokens per task at 5 calls per task with a 0% cache hit rate. The interesting unit is the task, and the interesting equation has six terms, not two.

When to use this skill

• The user is planning a deployment and needs a unit-economics number.
• The user is comparing patterns (ReAct vs. Plan-and-Execute vs. Router) on cost.
• The user is comparing model tiers and only has price-list intuition.
• The user is debugging a cost spike and has no per-task breakdown.

The cost-per-task equation

cost_per_task = Σ (calls_per_task × tokens_per_call × price_per_token)
              + retrieval_cost
              + tool_cost
              - cache_savings

Six terms. Skipping any of them is how forecasts miss by 5×.

Decision flow

1. What is the cost ceiling per task? Number in dollars. Without it, you cannot pick a pattern or a model.
2. What does the task actually decompose into — how many model calls, how many tool calls? Sketch the call graph before pricing.
3. What is the prompt prefix that repeats across calls? → that's your caching surface. See [[prompt-caching]].
4. Which step needs the biggest model, and can the others use a smaller tier? See [[latency-budgeting]] for the same principle on latency.
5. What is the failure-and-retry rate? Retries are real cost.

Pattern-level cost overhead (rules of thumb)

• Single-shot tool call — baseline (1.0×).
• ReAct loop — 2–5× baseline depending on step count; dominated by repeated context resending.
• Plan-and-Execute — 1.5–2× baseline; plan reused across steps so the prefix caches well.
• Reflexion / critic — 2–4× baseline per iteration. Cap iterations hard or this number explodes.
• Supervisor + N workers — N+1× baseline best case; can be 2N+1× if workers re-pull the full context.
• Hierarchical — uncapped without explicit budget enforcement. Treat as a fire hazard.

Numbers approximate; the ratios are stable across providers. Use them to sanity-check architecture choices.

The five rules

1. Measure tokens per stage in dev. Token counts on every span (see [[agent-observability]]).
2. Caching is the first lever, not the last. A well-laid-out prompt can halve the cost line without touching the model.
3. The smallest model that passes the eval wins. Default to "smaller until quality regresses", not "biggest because it's safer."
4. Cap loops at the controller, not the prompt. "Try up to 5 times" must be code, not vibes.
5. Cost is per successful task. Include retries, failed runs, and abandoned sessions in the denominator. Otherwise the number lies.

Anti-patterns to flag immediately

• Pricing the cheapest model with no quality eval. The cheapest model that fails 30% of tasks is the most expensive.
• Ignoring the cache. A 60% cache hit rate routinely halves cost; not measuring it leaves money on the table.
• Counting only model cost. Retrieval, embedding, tool, observability all show up on the bill.
• One agent, one price. Cost is per task type — debugging an agent that handles three task shapes with one cost number is impossible.
• No cost dashboard per release. Cost drift is a regression; treat it like a perf regression.

Questions to ask the user

1. What is the cost ceiling per task in dollars?
2. What is the call graph — how many model calls and tool calls per task, today?
3. What is the token count per call at p50 and p95?
4. What is the cache hit rate, and where is it measured?
5. What is the retry rate, and is it included in cost-per-task?
6. What is the traffic shape — is this 100 tasks/day or 100k/hour?

If the user can't answer (1), unit economics will be debated forever. Pin that first.

The hard line

No cost-per-task number, no production approval. A cost ceiling without measurement is a wish.

Why this exists

Cost surprises in production agents are almost always architectural, not pricing — wrong pattern, wrong model on the wrong step, no caching, runaway loops. The unit economics fall out of the architecture; arguing about list price is the wrong fight. See [link to article on agent unit economics].

References

• references/cost-equation.md — the six terms worked through with examples.
• references/pattern-cost-table.md — per-pattern token overhead with sketches.
• references/cost-dashboards.md — what to put on the per-release cost dashboard.

Related skills

• Cost falls out of architecture — start with [[agent-architecture-patterns]] if you have not.
• Caching is the first lever — [[prompt-caching]].
• Latency and cost trade against each other — [[latency-budgeting]].
• Measure tokens per stage from traces — [[agent-observability]].
• Cheapest model that passes the eval wins — [[agent-evaluation-harness]].