What does one completed agent task really cost?
Model planning, coding, testing, review, rework, and failure as one loop. The result exposes true completion economics, not just per-call price.
Transition model
Each origin repeats one cost and duration; its outgoing probabilities must total exactly 1.
Completed-task decision
NO RESULT YET
Results remain unavailable until a valid model is calculated.
The matrix is the audit trail.
Calculate a valid loop to inspect why stages recur, how success absorbs probability, and which work actually drives completed-task cost.
Transition evidence Q + R
Fundamental matrix N = (I - Q)-1
Observed interpretation 1 / 3
The result will separate price, reliability, and throughput effects.
Agent Loop Economics: Absorbing Markov Chains
Read the explanation
Agent pipelines do not execute in a single forward pass. Each stage carries retry probabilities that loop back to previous steps. The fundamental matrix N equals the inverse of identity minus transient transitions Q. This directly solves the expected number of times an agent enters each stage. Clicking Calculate Loop computes the matrix. Halving model price cuts per-run costs, but true completed-task expense depends on restarts from failure.
Absorbing Markov Chains in Agent Loop Economics
How do stage retries and failure rates compound into the true cost and duration of a completed AI agent task?
AI agent workflows rarely proceed in a pure linear sequence; instead, code generation, testing, and review stages frequently loop back for rework or terminate prematurely. This tool models multi-step agent architectures as an absorbing Markov chain. By partitioning stage transitions into transient states (internal stages like Plan, Code, Test, and Review) and absorbing states (such as Done and Failed), the model calculates the fundamental matrix N = (I - Q)⁻¹. This reveals the expected number of times each stage will be revisited and determines overall completion probabilities, total expected compute cost, and latency per successful output.
This calculator assumes transition probabilities between stages are stationary and memoryless (Markovian), whereas real agent runs often experience context accumulation, prompt bloat, and correlated failure modes across iterations. Additionally, the comparison multiplier (0.5 cost) and throughput gain (54%) represent user-specified scenarios rather than empirical benchmarks for any specific LLM provider or orchestration framework.
Try a worked example
Using the bundled sample workflow (Plan, Code, Test, Review with terminal states Done and Failed), leave the parameters at their default values and click 'Calculate loop'. The engine constructs the transient transition matrix Q and absorbing matrix R, solving N = (I - Q)⁻¹. The dashboard updates the status to 'LOOP ECONOMICS SOLVED', demonstrating that Code is visited more than once per task attempt due to downstream test and review failures, and computes the exact runs per success required to absorb into the Done state.
Canonical Transition Matrix & Fundamental Matrix N
In absorbing Markov chain theory, the transition matrix P is arranged in canonical form by placing transient states first and absorbing states last: P = [[Q, R], [0, I]], where Q represents transition probabilities between transient stages and R represents transitions from transient stages directly into absorbing states. Introduction to Probability (Grinstead & Snell), Chapter 11: Markov Chains
The fundamental matrix is defined as N = (I - Q)⁻¹ = I + Q + Q² + ... . Each entry N_ij provides the expected number of visits to transient state s_j given that the agent execution started in state s_i. Summing the entries of row i gives the total expected steps before absorption. Introduction to Probability (Grinstead & Snell), Chapter 11: Markov Chains
Absorption Probabilities and Effective Cost per Success
The matrix of absorption probabilities into terminal states is given by B = N R, where entry B_ij represents the probability that a process starting in transient state s_i is eventually absorbed into absorbing state s_j. Introduction to Probability (Grinstead & Snell), Chapter 11: Markov Chains
When an agent fails to reach success, the task must either abort or restart from the beginning. If the probability of successful absorption per attempt is p_success, the expected total runs per completed task equals 1 / p_success. Multiplying the expected cost of an individual run by 1 / p_success yields the true economic cost per delivered output, demonstrating why small improvements in reliability often decrease overall budget more than per-token model discounts.
Sources and further reading
- Introduction to Probability (Grinstead & Snell), Chapter 11: Markov Chains
Provides mathematical definitions and proofs for absorbing Markov chains, canonical form matrices Q and R, the derivation of the fundamental matrix N = (I - Q)^(-1), and absorption probabilities B = N R.