Index Ai Academy
Phase 1 · Building with LLMs · Prompting

Tokens and the context window

How text becomes tokens, and what fits in one request.

About 25 minutes · Free account required

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Why it matters

Tokens are the unit behind every limit in an LLM app: how much you can send, how long the reply can be, how long it takes and what it costs. A prompt that works on ten customer reviews can fail, slow down or run up a bill on ten thousand. Thinking in tokens lets you size a request before you send it, instead of finding out from an error message or an invoice.

What you'll be able to do

  • Estimate how many tokens a piece of text will use, and explain why exact counts vary
  • Turn the usage numbers in a response into a cost estimate
  • Check that a request fits the context window with room left for the reply
  • Decide what to send when you have more material than budget

Before this lesson

Next in this phase: Prompt fundamentals