Cursor AI Pricing 2026: Plans, Costs & Which One Is Right for You

How much does Cursor AI cost?

Cursor offers four individual plans and two business plans. Here's the short version:

Annual billing saves 20% across all paid plans.

**Important for 2026:** In June 2025, Cursor switched from a request-based model to a **credit-based system**. Every paid plan now includes a monthly credit pool (equal to the plan price in dollars) that depletes based on which AI models you use. Auto mode is unlimited.

Manually selecting premium models like Claude Sonnet or GPT-4 draws from your credit pool.

As AI tools continue to reshape the developer experience, platforms like Cursor AI are becoming essential for engineering teams looking to streamline workflows, supercharge code generation, and enhance team collaboration. But with several pricing tiers available, it’s important to understand what each Cursor AI plan offers – and which is right for your needs. If you're new to the tool, check out what Cursor AI is and how it works before diving into pricing.

💡 Overview of Cursor AI Plans

Cursor AI offers six pricing tiers across individual and business plans:

Let’s break down what you get in each plan.

🧪 Hobby Plan – Free

The Hobby plan is a great starting point if you're testing out Cursor AI or working on small side projects.

Includes:

✅ Pro two-week trial: Try out the advanced Pro features at no cost for 14 days.

✅ 2,000 completions: Plenty of AI-powered code completions to explore the tool's capabilities.

✅ 50 slow requests: Access a limited number of more resource-intensive operations (likely long context or codebase-wide tasks).

Ideal for:

Students, solo developers exploring AI tools, or casual weekend coders who want to test the waters without commitment.

With:

🧪 Hobby Plan – Free

The Hobby plan lets you try Cursor's core features without a credit card. It's genuinely useful for evaluation, but not designed for daily use.

Includes:

✅ Limited Agent requests

✅ Limited Tab completions

✅ No credit card required

Ideal for:

Students, developers evaluating AI coding tools, or anyone who wants to experience Cursor before committing to a paid plan.

⚡ Pro Plan – $20/month ($16/month billed yearly)

The most popular plan for individual developers. Pro gives you unlimited Tab completions and a monthly credit pool for advanced model usage.

Everything in Hobby, plus:

✅ Unlimited Tab completions (always on, doesn't use credits)

✅ Unlimited Auto mode (Cursor picks a cost-efficient model automatically)

✅ $20/month credit pool for manually selecting premium models (Claude Sonnet, GPT-4o, Gemini, etc.)

✅ Cloud Agents and maximum context windows

✅ Extended limits on Agent tasks

**How credits work:** Auto mode is unlimited. If you manually select a premium model, it draws from your $20 credit pool. Claude Sonnet depletes credits roughly 2x faster than Gemini, so model choice matters. Once your pool is empty, you can enable pay-as-you-go overages or upgrade.

Ideal for:

Freelancers, indie developers, and engineers who use AI daily for coding, refactoring, and feature development.

🚀 Pro+ Plan – $60/month ($48/month billed yearly)

For developers who consistently hit Pro limits. Pro+ gives you 3x the credit usage across all OpenAI, Claude, and Gemini models.

Everything in Pro, plus:

✅ 3x usage multiplier on all premium models

Ideal for:

Heavy users running background agents frequently, working on large codebases, or relying on frontier models for most tasks.

⚡ Ultra Plan – $200/month

For developers who live inside Cursor all day. Ultra gives you a 20x usage multiplier and priority access to new features.

Everything in Pro, plus:

✅ 20x usage on all OpenAI, Claude, and Gemini models

✅ Priority access to new features

Ideal for:

Full-time AI-native developers and teams running continuous background agents or large-scale code migrations.

🧑‍💼 Teams Plan – $40/user/month ($32/user/month billed yearly)

Designed for engineering teams that need shared context, centralized billing, and visibility into AI usage.

Everything in Pro, plus:

✅ Shared chats, commands, and rules across the team

✅ Centralized team billing

✅ Usage analytics and reporting

✅ Org-wide privacy mode controls

✅ Role-based access control

✅ SAML/OIDC SSO

Ideal for:

Engineering teams of 3+ developers who need collaboration features, accountability, and security controls.

Use cases

🧮 Yearly Billing Discount

The pricing shown reflects yearly billing with a 20% discount. Cursor also offers monthly billing, though you'll pay more if you choose that flexibility. If you're committed to using the tool long-term, the annual option provides the best value.

📝 Summary Table

Annual billing saves 20% on all paid plans.

🧠 How to Choose?

– Just testing the tool? Start with Hobby — no credit card needed.

– Coding daily as a solo dev or freelancer? Pro at $20/month is the right starting point. Use Auto mode to stretch your credits.

– Hitting Pro limits regularly? Track your overages for one month. If they consistently exceed $40, Pro+ at $60 makes sense.

– Running agents all day on large codebases? Ultra at $200/month is built for this.

– Team of 3+ developers? Teams at $40/user/month adds collaboration, privacy controls, and usage visibility.

**Pro tip:** Auto mode is unlimited on all paid plans. If you're frequently running out of credits, switching to Auto instead of manually selecting Claude or GPT-4o will significantly reduce consumption.

Looking to compare Cursor against other AI coding tools? See our breakdown of how to use Codex for an alternative perspective.

But if you want to go beyond AI-assisted code edits and actually generate complete, working apps, that’s where UI Bakery comes in. Instead of just helping you write code, UI Bakery creates full web applications end-to-end: UI, data models, backend logic, and deployment - all from natural language prompts.

You can export and continue coding locally, or run it in the cloud instantly. It’s built for developers who want to ship real apps fast, not just prototypes.

FAQ

Does Cursor AI have a free plan?

Yes. The Hobby plan is free with no credit card required. It includes limited Agent requests and Tab completions — enough to evaluate the tool before upgrading.

How does Cursor's credit system work?

Since June 2025, paid plans include a monthly credit pool equal to the plan price (e.g., $20 for Pro). Auto mode is unlimited and doesn't use credits. Manually selecting premium models like Claude Sonnet or GPT-4o draws from your pool at varying rates. Once depleted, you can enable pay-as-you-go overages.

What happened to the old 500 requests/month plan?

Cursor replaced it in June 2025 with a credit-based system. Under the new model, Pro users effectively get around 225 Claude Sonnet requests or ~550 Gemini requests from the same $20. Auto mode remains unlimited.

Is Cursor AI worth it in 2026?

For developers spending 4+ hours daily in an IDE, most users find Pro pays for itself quickly. The key is using Auto mode for routine tasks and reserving premium models for complex work.

Does Cursor offer a student discount?

Yes. Verified students can get one year of Cursor Pro free by signing up with a school email.