Microsoft has added a real-time token counter and spending alerts to Visual Studio Code to help developers monitor GitHub Copilot usage under its new consumption-based pricing model, which launched in June 2026. The feature, released June 17 in VS Code 1.125, lets users set spending thresholds and receive notifications before costs escalate unexpectedly.
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Microsoft has added a feature to Visual Studio Code that displays the number of tokens consumed by GitHub Copilot, along with alerts when usage approaches or reaches a preset spending threshold.
Why it matters
GitHub Copilot switched to consumption-based pricing in June 2026, charging users based on tokens used for AI chat and agent features. The new display helps developers avoid unexpected costs by monitoring usage as they work.
What to watch
The feature became available on June 17 with Visual Studio Code 1.125.
GitHub Copilot's transition to consumption-based pricing in June 2026 shifted the cost model from a flat subscription to variable charges tied to actual token usage for AI chat and agent operations. This change created a new challenge for developers: managing spend without real-time visibility into what they were consuming. Microsoft's response—embedding a consumption tracker and threshold-alert system directly into Visual Studio Code—addresses this friction by giving users continuous feedback on their usage patterns as they work.
The placement of this feature in the IDE itself is significant: rather than asking users to check a separate dashboard or wait for a monthly invoice, the alerts appear in the environment where the consumption happens. This design allows developers to make immediate decisions about their usage—pause an expensive operation, switch approaches, or adjust their preset spending limits—before costs spiral beyond budget.
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