Model ComparisonOpenAI

o3

OpenAI o3 — the highest-capability reasoning model, purpose-built for the hardest problems.

VisionTool usePrompt cachingReasoningSlow
Pricing (verified 2026-08-19)
TypePrice / 1M tokensNotes
Input$10.00Per 1M input tokens
Output$40.00Per 1M output tokens
Cache read$2.50Cached prefix read-back
Source: OpenAI official pricing page · Last verified 2026-08-19
Context Window
200K tokens
150K words · 1 pages of text

At $10/M input and $40/M output, o3 is the most expensive mainstream model. The price is justified only when task accuracy directly drives revenue and Sonnet 5 or o3-mini fail your evals.

Best for

  • Frontier mathematics and science research
  • Complex multi-step code generation for hard algorithmic problems
  • Tasks where wrong answers are very costly (legal, medical, financial analysis)
  • Competitive programming and olympiad-level problem solving

Not ideal for

  • High-volume workloads (cost is prohibitive)
  • Simple tasks any cheaper model handles well
  • Latency-sensitive applications (reasoning is slow)

Real cost scenarios

ScenarioEst. monthly costBreakdown
1,000 complex research queries/month$60015k tokens avg per query × 1k = 15M tokens at $10/M input + output
Enterprise code generation — 10k complex tasks/month$8,000Heavy reasoning + long output per task

Estimates with typical token distributions. Use the Prompt Cost Calculator for your exact workload.

How to cut costs on o3

  1. Always eval o3-mini first — it costs 10× less and handles 70-80% of reasoning tasks at comparable quality.
  2. Use o3 in a multi-agent setup as the "expert" called only for tasks where cheaper models fail.
  3. Batch API for o3 gives 50% discount — use for overnight analysis workloads.

Calculate your o3 costs

Prompt Cost Calculator
Exact cost for your prompt
Agent Cost Calculator
Multi-step agent loops
Prompt Caching Calculator
Caching savings
Conversation Cost
Chat history strategies

Other OpenAI models

GPT-5.4$2.50/MGPT-5 mini$0.25/MGPT-4o$2.50/M

Compare o3

deepseek r1 vs o3 minigpt 5 4 vs claude opus 5

Frequently Asked Questions

Is OpenAI o3 worth the price?

Only in specific use cases. If your task is genuinely at the frontier of what LLMs can do (research-grade math, cutting-edge code), o3 might be the only model that succeeds. If o3-mini succeeds on your task, use that — it's 9× cheaper on input.

What is the difference between o3 and o3-mini?

o3 is the full flagship reasoning model; o3-mini is a distilled, faster, cheaper version. o3 scores ~5-10% higher on the hardest benchmarks (AIME, competition math). For most production reasoning tasks, o3-mini is sufficient and 9× cheaper.

Pricing verified 2026-08-19 from OpenAI official pricing. All prices in USD per 1M tokens. See methodology and price changelog.