> ## Documentation Index
> Fetch the complete documentation index at: https://docs.payo.dev/llms.txt
> Use this file to discover all available pages before exploring further.

# Setting Prices

> How to set and update prices for your MCP tools

## Overview

You define prices per tool in your SDK configuration. Prices are in USD and can range from \$0 (free) to any amount.

```typescript theme={null}
const paidServer = withPayments(server, {
  apiKey: process.env.PAYO_API_KEY!,
  pricing: {
    'simple_tool': 0.01,     // $0.01
    'complex_tool': 0.10,    // $0.10
    'premium_tool': 1.00,    // $1.00
    'free_tool': 0,          // Free
  }
});
```

## Cost-Based Pricing

Price based on your costs to serve the tool:

| Cost Factor        | Example                                               |
| ------------------ | ----------------------------------------------------- |
| API calls you make | If an external API costs \$0.001/call, charge \$0.002 |
| Compute time       | Heavy processing → higher price                       |
| Data transfer      | Large responses → higher price                        |

A good formula: **your\_cost × 1.5-3x = price**

## Price Communication

Help agents understand your pricing by including it in tool descriptions:

```typescript theme={null}
paidServer.tool('analyze_document', {
  description: 'Analyze a document for key insights ($0.10 per call)',
  // ...
}, handler);
```

## Changing Prices

To change prices, update the `pricing` config in your code and redeploy your server. New prices take effect immediately.

<Warning>
  Communicate price changes to your users. Agents may have budgets based on your old prices.
</Warning>