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Foundations · Lesson 2

7 min

Tokens: What Models Actually Read

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Text in, tokens out

In plain English

A model reads text the way you might read a word you don't know: in chunks. "unbelievable" might become "un" + "believ" + "able". Those chunks are tokens, and you pay per chunk, like paying per syllable.

An LLM never sees characters or words. A tokenizer first splits the text into tokens: common words, pieces of words, punctuation and spaces. Each token maps to an integer ID.

Useful rules of thumb for English:

  • 1 token ≈ 4 characters ≈ ¾ of a word
  • 100 tokens ≈ 75 words
  • Code, numbers, and many non-English languages often take more tokens per word

Why you care as an engineer:

  • Pricing is per token, usually quoted per million tokens, with input and output priced separately.
  • Limits such as the context window and max output are measured in tokens.
  • Latency grows with the number of output tokens.

Every model family has its own tokenizer, so the same text gives different token counts on different models. Use the provider's token-counting tool when precision matters.

Quick check: Roughly how many tokens is a 300-word English email?