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Using Kilo Code for Free and on a Budget

Why this matters: AI model costs can add up quickly during development. This guide shows you how to use Kilo Code effectively while minimizing or eliminating costs through free models, budget-friendly alternatives, and smart usage strategies.

Completely Free Options​

OpenRouter Free Tier Models​

OpenRouter offers several models with generous free tiers. Note: You'll need to create a free OpenRouter account to access these models.

Setup:

  1. Create a free OpenRouter account
  2. Get your API key from the dashboard
  3. Configure Kilo Code with the OpenRouter provider

Available free models:

  • Qwen3 Coder (free) - Optimized for agentic coding tasks such as function calling, tool use, and long-context reasoning over repositories.
  • Z.AI: GLM 4.5 Air (free) - Lightweight variant of the GLM-4.5 family, purpose-built for agent-centric applications.
  • DeepSeek: R1 0528 (free) - Performance on par with OpenAI o1, but open-sourced and with fully open reasoning tokens.
  • MoonshotAI: Kimi K2 (free) - Optimized for agentic capabilities, including advanced tool use, reasoning, and code synthesis.

Cost-Effective Premium Models​

When you need more capability than free models provide, these options deliver excellent value:

Ultra-Budget Champions (Under $0.50 per million tokens)​

Mistral Devstral Small

  • Cost: ~$0.20 per million input tokens
  • Best for: Code generation, debugging, refactoring
  • Performance: 85% of premium model capability at 10% of the cost

Llama 4 Maverick

  • Cost: ~$0.30 per million input tokens
  • Best for: Complex reasoning, architecture planning
  • Performance: Excellent for most development tasks

DeepSeek v3

  • Cost: ~$0.27 per million input tokens
  • Best for: Code analysis, large codebase understanding
  • Performance: Strong technical reasoning

Mid-Range Value Models ($0.50-$2.00 per million tokens)​

Qwen3 235B

  • Cost: ~$1.20 per million input tokens
  • Best for: Complex projects requiring high accuracy
  • Performance: Near-premium quality at 40% of the cost

Smart Usage Strategies​

The 50% Rule​

Principle: Use budget models for 50% of your tasks, premium models for the other 50%.

Budget model tasks:

  • Code reviews and analysis
  • Documentation writing
  • Simple bug fixes
  • Boilerplate generation
  • Refactoring existing code

Premium model tasks:

  • Complex architecture decisions
  • Debugging difficult issues
  • Performance optimization
  • New feature design
  • Critical production code

Context Management for Cost Savings​

Minimize context size:

// Instead of mentioning entire files
@src/components/UserProfile.tsx

// Mention specific functions or sections
@src/components/UserProfile.tsx:45-67

Use Memory Bank effectively:

  • Store project context once in Memory Bank
  • Reduces need to re-explain project details
  • Saves 200-500 tokens per conversation

Strategic file mentions:

  • Only include files directly relevant to the task
  • Use @folder/ for broad context, specific files for targeted work

Model Switching Strategies​

Start cheap, escalate when needed:

  1. Begin with free models (Qwen3 Coder, GLM-4.5-Air)
  2. Switch to budget models if free models struggle
  3. Escalate to premium models only for complex tasks

Use API Configuration Profiles:

  • Set up multiple profiles for different cost tiers
  • Quick switching between free, budget, and premium models
  • Match model capability to task complexity

Mode-Based Cost Optimization​

Use appropriate modes to limit expensive operations:

Custom modes for budget control:

  • Create modes that restrict expensive tools
  • Limit file access to specific directories
  • Control which operations are auto-approved

Real-World Performance Comparisons​

Code Generation Tasks​

Simple function creation:

  • Mistral Devstral Small: 95% success rate
  • GPT-4: 98% success rate
  • Cost difference: Free vs $0.20 vs $30 per million tokens

Complex refactoring:

  • Budget models: 70-80% success rate
  • Premium models: 90-95% success rate
  • Recommendation: Start with budget, escalate if needed

Debugging Performance​

Simple bugs:

  • Free models: Usually sufficient
  • Budget models: Excellent performance
  • Premium models: Overkill for most cases

Complex system issues:

  • Free models: 40-60% success rate
  • Budget models: 60-80% success rate
  • Premium models: 85-95% success rate

Hybrid Approach Recommendations​

Daily Development Workflow​

Morning planning session:

  • Use Architect mode with DeepSeek R1
  • Plan features and architecture
  • Create task breakdowns

Implementation phase:

  • Use Code mode with budget models
  • Generate and modify code
  • Handle routine development tasks

Complex problem solving:

  • Switch to premium models when stuck
  • Use for critical debugging
  • Architecture decisions affecting multiple systems

Project Phase Strategy​

Early development:

  • Free and budget models for prototyping
  • Rapid iteration without cost concerns
  • Establish patterns and structure

Production preparation:

  • Premium models for critical code review
  • Performance optimization
  • Security considerations

Cost Monitoring and Control​

Track Your Usage​

Monitor token consumption:

  • Check cost estimates in chat history
  • Review monthly usage patterns
  • Identify high-cost operations

Set spending limits:

  • Use provider billing alerts
  • Configure rate limits to control usage
  • Set daily/monthly budgets

Cost-Saving Tips​

Reduce system prompt size:

  • Disable MCP if not using external tools
  • Use focused custom modes
  • Minimize unnecessary context

Optimize conversation length:

  • Use Checkpoints to reset context
  • Start fresh conversations for unrelated tasks
  • Archive completed work

Batch similar tasks:

  • Group related code changes
  • Handle multiple files in single requests
  • Reduce conversation overhead

Getting Started with Budget Models​

Quick Setup Guide​

  1. Create OpenRouter account for free models
  2. Configure multiple providers in Kilo Code
  3. Set up API Configuration Profiles for easy switching
  4. Escalate to budget models when needed
  5. Reserve premium models for complex work

Free tier foundation:

  • OpenRouter - Free models
  • Groq - Fast inference for supported models
  • Z.ai - Provides a free model GLM-4.5-Flash

Budget tier options:

Premium tier backup:

  • Anthropic - Claude for complex reasoning
  • OpenAI - GPT-4 for critical tasks

Measuring Success​

Track these metrics:

  • Monthly AI costs vs. development productivity
  • Task completion rates by model tier
  • Time saved vs. money spent
  • Code quality improvements

Success indicators:

  • 70%+ of tasks completed with free/budget models
  • Monthly costs under your target budget
  • Maintained or improved code quality
  • Faster development cycles

By combining free models, strategic budget model usage, and smart optimization techniques, you can harness the full power of AI-assisted development while keeping costs minimal. Start with free options and gradually incorporate budget models as your needs and comfort with costs grow.

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