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Equation 12 · Part 10 · The Real Cost of Running Claude in Production, Beyond the Per-Token Price

Symbol y

C=pin(n+τ)+pcww+pcrr+pout(y+z)aC = \frac{p_{\mathrm{in}}(n + \tau) + p_{\mathrm{cw}} w + p_{\mathrm{cr}} r + p_{\mathrm{out}}(y + z)}{a}
yy

What this part means

y occurs above the fraction bar. The numerator is divided by the entire denominator below it.

Its job in the formula

y occurs above the fraction bar. The numerator is divided by the entire denominator below it.

The passage around this formula

Collect the pieces above into one expression and the gap between a rate card and an invoice becomes explicit. For a single request, let n be new input tokens, w cache-write tokens, r cache-read tokens, y visible output tokens, z billed-but-invisible thinking tokens, and τ\tau the fixed tool and system-prompt tokens added regardless of content. Let pinp_{\mathrm{in}} , pcwp_{\mathrm{cw}} , pcrp_{\mathrm{cr}} , and poutp_{\mathrm{out}} be the published rates, and let a ∈\in (0, 1] be the fraction of attempts an…

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Learn the underlying idea

A variable is a named place for a value. Its letter is a local label: x can mean position in one formula and a data point in another.

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