API cost decision in 10 seconds

LFM2.5-1.2B-Thinking (free) vs Granite 4.0 Micro

Pick LFM2.5-1.2B-Thinking (free) for lower cost; pick Granite 4.0 Micro only if the larger context window matters more.

Pricing data updated:  Prices normalized to USD per 1M tokens Sample workload: 1M input + 500K output

Budget verdict

Pick LFM2.5-1.2B-Thinking (free) for lower cost; pick Granite 4.0 Micro only if the larger context window matters more.

On the standard 1M input plus 500K output workload, LFM2.5-1.2B-Thinking (free) is estimated at $0 vs $0.07 for Granite 4.0 Micro, saving $0.07 (100% lower).

Cost-first pickLFM2.5-1.2B-Thinking (free)
Context-first pickGranite 4.0 Micro
Sample savings$0.07100%
10x traffic gap$0.73

Granite 4.0 Micro has more context, but LFM2.5-1.2B-Thinking (free) saves $0.07 on the standard workload. At 10x that traffic, the same price gap is about $0.73. Use the calculator below to replace the sample workload with your own token volume.

Cost sensitivity

Workload Sensitivity

Same prices, different token mixes.

LFM2.5-1.2B-Thinking (free) stays cheaper across input-heavy, balanced, and output-heavy sample workloads.

Workload shapeToken mixBetter pickLFM2.5-1.2B-Thinking (free)Granite 4.0 Micro
Input-heavy / RAG 5M input + 500K output LFM2.5-1.2B-Thinking (free) $0 $0.14
Balanced workload 1M input + 1M output LFM2.5-1.2B-Thinking (free) $0 $0.13
Output-heavy chatbot 1M input + 5M output LFM2.5-1.2B-Thinking (free) $0 $0.58
Cheaper inputLFM2.5-1.2B-Thinking (free)$0 vs $0.02 / 1M
Cheaper outputLFM2.5-1.2B-Thinking (free)$0 vs $0.11 / 1M
Larger contextGranite 4.0 Micro32.77K vs 131K
Sample workloadLFM2.5-1.2B-Thinking (free)$0 vs $0.07

Estimate your workload cost

Your Workload Cost

Prices are normalized to USD per 1M tokens.
LFM2.5-1.2B-Thinking (free)Calculating…Estimated API cost
Granite 4.0 MicroCalculating…Estimated API cost
Cheaper for this workloadCalculating…Difference: calculating…

This estimate uses normalized public API pricing per 1M tokens. It is a planning aid, not a billing quote. Verify provider pricing, limits, and terms before production use.

Quick Decision

Verdict

LFM2.5-1.2B-Thinking (free) has the lower input price, LFM2.5-1.2B-Thinking (free) has the lower output price, and Granite 4.0 Micro offers the larger context window.

For a 1M input token plus 500K output token workload, the estimated API cost is $0 for LFM2.5-1.2B-Thinking (free) and $0.07 for Granite 4.0 Micro.

Best Fit

Choose LFM2.5-1.2B-Thinking (free) when you care most about lower input-token price, and lower output-token price.

Choose Granite 4.0 Micro when you care most about larger context window.

Head-to-Head Specs
FeatureLFM2.5-1.2B-Thinking (free)
(LiquidAI)		Granite 4.0 Micro
(IBM)
Input Price
prompt tokens per 1M		$0$0.02
Completion Price
per 1M tokens		$0$0.11
Sample Workload Cost
1M input + 500K output		$0$0.07
Context Window32.77K131K
Release Date2026-01-202025-10-20
LFM2.5-1.2B-Thinking (free)

LFM2.5-1.2B-Thinking is a lightweight reasoning-focused model optimized for agentic tasks, data extraction, and RAG—while still running comfortably on edge devices. It supports long context (up to 32K tokens) and is...

Granite 4.0 Micro

Granite-4.0-H-Micro is a 3B parameter from the Granite 4 family of models. These models are the latest in a series of models released by IBM. They are fine-tuned for long...

Use-Case Decision Matrix

Use caseBetter pickWhy
Budget-constrained productionLFM2.5-1.2B-Thinking (free)On the standard 1M input plus 500K output workload, LFM2.5-1.2B-Thinking (free) is estimated at $0 vs $0.07 for Granite 4.0 Micro, saving $0.07 (100% lower).
High-volume input processingLFM2.5-1.2B-Thinking (free)Lower prompt-token price matters most when prompts or retrieved passages dominate the bill.
Long responses and chatbotsLFM2.5-1.2B-Thinking (free)Lower output-token price matters most when assistants generate many completion tokens.
RAG or long-document workGranite 4.0 MicroA larger context window leaves more room for retrieved passages and source files.