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AI agent token limits, explained

What a token limit is, why agents need one, and how to set per-run and per-day caps so a runaway task cannot blow your budget.

Updated 2026-08-22Reading time 4 min

Tokens are how models bill

A token is a chunk of text — roughly three-quarters of a word. Providers bill by tokens in and tokens out, so an agent that talks a lot costs more.

Why agents need a limit

An agent loops: it plans, calls a tool, reflects, and repeats. Without a cap, a failing task can loop for thousands of tokens. A limit makes the loop stop at a number you choose.

Two limits that matter

  • Per-run — a ceiling for a single task.
  • Per-day — a ceiling for everything the agent does in 24 hours.

Set them

  1. Open the agent’s settings and set a token budget.
  2. Set a daily spend cap in Settings.
  3. Add a step budget so a task stops itself early.

What a sensible default looks like

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Start low — a few thousand tokens for routine jobs — and raise it only when a real task needs more.