How much does Cursor cost?
As of 2026-07, Cursor has a free Hobby plan ($0) and three paid individual plans: Pro at $20/month, Pro+ at $60/month, and Ultra at $200/month. Annual billing cuts ~20% (Pro drops to $16/month). Teams cost $40/user/month, and Enterprise is custom-priced.
Why — the first-principles explanation
Cursor is an AI code editor built by Anysphere. Its cost structure reflects a simple truth: the AI models doing the heavy lifting (writing and editing code) cost real money to run, because every request burns GPU compute at a model provider like Anthropic, OpenAI, or Google. So Cursor sells you a monthly budget of that compute, not unlimited magic.
The paid tiers are really just different-sized buckets of model usage. Pro ($20/month) gives you roughly $20 of agent model usage plus a generous pool of Cursor's own fast models. Pro+ ($60) and Ultra ($200) are the same product with bigger buckets, aimed at people who run the AI agent all day. The free Hobby plan gives you a small taste so you can try before you pay.
The 20% annual discount exists for the same reason any subscription offers one: locking in a year of payment up front is more valuable to the company than month-to-month, so they share some of that value back. That is why Pro shows up as both "$20/month" and "$16/month" depending on whether you pay monthly or yearly.
Teams and Enterprise cost more per person because they add admin controls, single sign-on, and shared billing, not because the AI is different.
An example that makes it click
Think of Cursor like a phone plan for a robot assistant. The free plan is a pay-as-you-go SIM with just a few minutes on it. Pro at $20 is like a $20 monthly plan with a solid chunk of talk time. Ultra at $200 is the unlimited-heavy-user plan for someone who is on the phone nonstop. The robot's brainpower is the same on every plan; you are just buying how much you get to use it each month.
And like phone plans, paying for a full year at once gets you a discount: $16 a month instead of $20 if you commit to 12 months.
Key facts
- Hobby plan is free ($0/month) with no credit card required (as of 2026-07).
- Pro costs $20/month, or $16/month when billed annually (about 20% off).
- Pro+ costs $60/month ($48/month annual); Ultra costs $200/month ($160/month annual).
- Teams costs $40/user/month; a Premium seat with 5x usage runs about $120/user/month.
- Enterprise pricing is custom and quoted directly by Cursor's sales team.
- New users typically get a roughly two-week Pro trial before choosing a plan.
An AI-first code editor built on VS Code.
Affiliate link — we may earn a commission at no cost to you.▶ The 60-second explainer (script)
How much does Cursor cost? As of July 2026, there are five tiers. The Hobby plan is free forever, but with limited AI usage. Pro is twenty dollars a month, and that is the plan most solo developers pick. Pro Plus is sixty dollars and Ultra is two hundred, both giving you a much bigger monthly pool of AI usage for heavy agent work. If you pay for a full year up front, you save about twenty percent, so Pro drops to sixteen dollars a month. For companies, Teams costs forty dollars per user per month and adds single sign-on and shared billing. Enterprise pricing is custom. The key thing to understand: you are buying a monthly budget of AI compute, not a different product at each tier. Start free, and only upgrade when you actually hit the limits.
What authoritative sources say
People also ask
Is there a free version of Cursor?
Yes. The Hobby plan is free with no credit card and includes limited Tab completions and Agent requests.
How much is Cursor Pro per year?
About $192 per year ($16/month) with annual billing, versus $240 if paid month to month.
What is the most expensive Cursor plan?
For individuals it's Ultra at $200/month. Enterprise plans are custom-priced and can be higher per seat with added controls.
Does Cursor charge extra beyond the subscription?
It can. If you exceed your plan's included usage, you either stop or enable usage-based (pay-as-you-go) billing for more.