How Does ChatGPT API Tier 3 Usage Impact Monthly Pricing?

Below is an outline of how the billing works for the Tier 3 plan:

How Tier 3 Billing Works

• Usage Limit vs. Fixed Fee:
  The Tier 3 specification provides you with a monthly usage limit of up to $1,000. It’s important to note that this limit isn’t a fixed fee; rather, you are billed based on your actual API usage.

  • If your usage is below the $1,000 cap, you pay only for what you use.
  • If your usage reaches the $1,000 limit, you won’t be billed more than that in the current billing period unless you upgrade to a higher tier.

• Automatic Tier Progression:
  The system is designed to automatically move you to a higher usage tier if your payments or usage history meet the criteria for that tier. Until such a progression occurs, your spending is capped at the current tier’s limit.

In Summary

For a Tier 3 plan:

• You’re not locked into paying $1,000 every month.
• Instead, you pay based on your usage until you hit the $1,000 limit.
• Exceeding the current tier’s limit means you simply can’t use more until you upgrade or the next billing period begins, rather than incurring additional charges beyond that cap.

This ensures that you only pay for what you use, up to the specified cap of your tier.