Cursor Review 2025: Best AI Code Editor?

Cursor has become the most talked-about AI coding tool among developers. Built as a fork of VS Code with AI deeply integrated from the ground up, it promises to make you 5-10x more productive. But after controversial pricing changes in mid-2025 that sparked Reddit outrage and forced public apologies, is Cursor still worth your investment?

After researching real developer experiences, analyzing the pricing controversy, and evaluating it against alternatives like GitHub Copilot and VS Code extensions, here’s everything you need to know about Cursor in 2025.

What is Cursor?

Cursor is an AI-first code editor built on top of VS Code (specifically, the open-source VS Code codebase). Unlike bolt-on AI extensions, Cursor redesigned the coding experience around AI assistance from the ground up.

Key distinction: Cursor isn’t just “VS Code with AI added.” It’s a complete editor where AI is a first-class citizen, not an afterthought.

What Makes Cursor Different?

Codebase awareness: Cursor understands your entire project structure, not just the current file.
Multi-file editing: Make coordinated changes across dozens of files simultaneously.
Composer mode: Generate and refactor entire features, not just snippets.
Context control: Explicitly control what code the AI can see and reference.

Think of it as having a senior developer pair programming with you—one who has instant recall of your entire codebase.

Who Uses Cursor?

Primary audience:

• Full-stack developers working on complex applications
• Startup founders building products rapidly
• Professional developers billing $50+/hour
• Teams wanting consistent AI-assisted workflows
• Developers working in large codebases (10K+ lines)

Not ideal for:

• Casual coders or beginners (the learning curve is real)
• Developers on tight budgets (<$20/month for tools)
• Those satisfied with free GitHub Copilot alternatives
• Programmers who prefer minimal, distraction-free editors

Cursor Key Features: What You Actually Get

1. AI Chat with Codebase Context

The standout feature that justifies Cursor’s existence: AI that truly understands your project.

How it works:

• Cursor indexes your entire codebase (using embeddings)
• When you ask questions, AI has full project context
• Reference specific files, functions, or symbols with @ mentions
• AI suggests relevant code from YOUR project, not generic examples

Example queries:

• “How does authentication work in this app?”
• “Find all database queries that don’t use parameterized statements”
• “Explain the data flow from frontend form submission to database storage”

Real developer feedback: “The codebase understanding is magic. Asked about a component I wrote 3 months ago and forgot—Cursor explained it better than I could.” - Reddit r/cursor

Limitations: Performance degrades on codebases larger than 100K lines of code. Indexing can take minutes on massive monorepos.

2. Composer: Multi-File Code Generation

Cursor’s “Composer” mode generates or refactors code across multiple files simultaneously.

Use cases:

• “Add user authentication to this Express app” → Modifies routes, middleware, models, and tests
• “Refactor this class to use TypeScript generics” → Updates class definition and all usage sites
• “Add error handling to all API endpoints” → Edits dozens of files consistently

Power vs Risk: Composer can make sweeping changes quickly, which is powerful but risky. Always review before accepting.

Developer experience: “Composer saved me 4 hours refactoring a feature across 20 files. But I spent 30 minutes reviewing changes—blindly accepting would’ve broken things.” - GitHub discussions

3. Tab: AI Autocomplete on Steroids

Cursor’s autocomplete predicts not just the next token, but entire blocks of code.

How it differs from Copilot:

• Understands your coding patterns across the project
• Suggests refactors based on your own code style
• Predicts multi-line completions more accurately
• Learns from your accept/reject patterns

Performance: On the “Auto” model (included unlimited), Tab completion works nearly instantly. On premium models, expect 1-3 second delays per suggestion.

User consensus: “Tab completion is noticeably better than Copilot. Not dramatically better, but better.” - HackerNews thread

4. Model Selection: Choose Your AI Brain

Cursor lets you select which AI model powers different features:

Available models (as of 2025):

• Auto: Cursor’s model selection (free, unlimited on Pro)
• GPT-4: OpenAI’s flagship (premium, costs credits)
• GPT-4o: Faster GPT-4 variant (premium)
• Claude 3 Opus: Anthropic’s most capable (premium, expensive)
• Claude 3.5 Sonnet: Best balance of speed and capability (premium)

The pricing trap: Using premium models burns through your $20 monthly credit pool rapidly. More on this in pricing.

5. Terminal Integration

AI assistance extends to your terminal:

• Generate shell commands from natural language
• Explain command errors and suggest fixes
• Debug failing scripts
• Write git commit messages based on changes

Example: Type “Install dependencies for a React TypeScript project” → Cursor suggests npm install react react-dom typescript @types/react @types/react-dom

6. Privacy & Data Controls

Developers rightly care about code privacy. Cursor offers:

Privacy modes:

• Normal mode (code sent to AI providers)
• Privacy mode (no code sent, reduced functionality)
• Custom embeddings (enterprise feature)

What’s sent to AI:

• Only code you explicitly reference or the current context
• Cursor states they don’t use your code for training
• Opt-out telemetry available

Enterprise considerations: Major companies using Cursor likely negotiate custom data processing agreements. Standard users rely on OpenAI/Anthropic’s privacy policies.

The 2025 Cursor Pricing Controversy: What Happened

In June 2025, Cursor fundamentally changed its pricing model, triggering backlash severe enough to make TechCrunch and force a public apology from the founders.

The Old Model (Pre-June 2025)

Predictable and loved by developers:

• Pro Plan: $20/month
• 500 “fast requests” per month
• Premium models cost 2 requests instead of 1
• After limit: Requests get slower, but never additional charges
• Zero surprise bills

Developers knew their maximum cost: $20/month, period.

The New Model (Post-June 2025)

Usage-based credits caused chaos:

• Pro Plan: Still $20/month, but now it’s a “$20 credit pool”
• Each AI request deducts cost based on actual API pricing
• Premium models (Claude Opus, GPT-4) cost 5-10x more per query
• “Unlimited Auto model” is the only truly unlimited feature
• Overages possible if you enable them

What changed: From predictable fixed limits to variable costs based on which models you use and how complex your requests are.

Why Developers Revolted

Reddit threads exploded with complaints:

“Cursor’s new pricing model is absolute garbage” (3,000+ upvotes on r/cursor)

Common complaints:

1. Bills became unpredictable: “How do I budget for a tool that might cost $20 or $200 depending on usage?”
2. Lack of transparency: “I have no idea how much credit a request will cost until I’ve used it.”
3. Mid-game rule changes: “I paid for a year at the old model. They changed it 3 months in.”
4. Perceived bait-and-switch: “They got us hooked, then jacked up effective costs.”

TechCrunch headline: “Cursor apologizes for unclear pricing changes that upset users”

Cursor’s response: Published a blog post admitting communication failures and clarifying (but not reverting) the new model.

Current Pricing Reality (February 2025)

(Pricing verified from cursor.com/pricing as of February 2025)

Understanding Credit Costs

How much does the $20 credit pool buy you?

Based on real developer reports and API pricing:

GPT-4o queries:

• Simple autocomplete: ~$0.01-0.02 per request
• Medium complexity (50-100 lines context): ~$0.04-0.08
• Complex multi-file operation: ~$0.10-0.20

Claude 3.5 Sonnet queries:

• Similar to GPT-4o, slightly cheaper for long outputs

Claude 3 Opus queries (most expensive):

• Complex requests: ~$0.50-1.00 each
• Just 20-40 Opus requests exhausts your $20 credit

“Auto” model (unlimited):

• Cursor’s optimized model
• Quality between GPT-3.5 and GPT-4
• No credit cost, truly unlimited

Real usage patterns:

• Developers sticking to “Auto” model: Never hit limits
• Developers using GPT-4o occasionally: $20/month sufficient
• Developers using Claude Opus heavily: $20 gone in days

Reddit user report: “Used Max Mode (largest context) with Claude Opus for refactoring. Burned through $20 credit pool in 3 days. Now I stick to Auto model.”

What “Max Mode” Means for Your Wallet

Max Mode: Gives AI the largest possible context window—your entire codebase, all related files, maximum reasoning capability.

Cost impact: 5-10x more expensive per request because AI processes vastly more tokens.

When to use: Complex architectural refactors, debugging gnarly bugs, understanding unfamiliar codebases.

When to avoid: Routine coding, simple autocompletes, anything you’d do multiple times per day.

Reality check: Max Mode with premium models can cost $0.50-2.00 per request. Use judiciously or your $20 monthly credit disappears fast.

Cursor Pros: What Developers Love

✅ Best-in-Class Codebase Understanding

This is Cursor’s killer feature that justifies the premium over free alternatives.

What developers say:

• “Cursor understands project architecture in a way GitHub Copilot never did.” - HackerNews
• “Asked it to find security vulnerabilities. It identified issues across 8 files by understanding data flow.” - Reddit
• “The @-mention system for referencing specific code is brilliant.” - Twitter/X

Why it matters: Generic AI gives generic answers. Cursor gives answers specific to YOUR codebase.

✅ Multi-File Editing Actually Works

Competitors talk about multi-file refactoring. Cursor delivers it.

Success stories:

• “Migrated entire project from JavaScript to TypeScript in 2 hours with Composer.” - Developer blog
• “Renamed a core class used in 47 files. Cursor updated every reference correctly.” - GitHub issue
• “Added logging to every API endpoint. Manually would’ve taken a day, Cursor did it in 10 minutes.” - Reddit

The catch: Always review changes. Automated doesn’t mean perfect.

✅ Superior VS Code Foundation

Since Cursor is a VS Code fork, you get:

• All your existing VS Code extensions work
• Familiar keyboard shortcuts and UI
• Same marketplace for themes and tools
• Easy migration from VS Code (settings sync)

Migration experience: “Switched from VS Code to Cursor in 15 minutes. Installed sync extension, everything came over seamlessly.” - Developer testimonial

✅ Fast Iteration and Improvement

Cursor’s team ships updates rapidly:

• Weekly bug fixes and feature improvements
• Community-requested features appear quickly
• Active Discord with founder participation
• Responsive to feedback (despite pricing controversy)

User sentiment: “They’re moving fast. Tool that didn’t exist 2 years ago is now the best AI editor available.” - HackerNews

✅ Works Offline (Mostly)

Unlike cloud-only AI tools, Cursor functions offline for basic editing:

• Tab completion works (cached locally)
• AI features require internet
• Syntax highlighting, linting, debugging work offline

Why it matters: Work on planes, with flaky Wi-Fi, or in secure environments.

Cursor Cons: What Frustrates Developers

❌ Pricing Unpredictability is a Dealbreaker for Some

The #1 complaint post-June 2025: You can’t reliably budget for Cursor.

Developer frustration:

• “Switched to GitHub Copilot ($10/month) because I need predictable costs.” - Reddit
• “Love Cursor, but can’t justify variable billing as a freelancer.” - HackerNews
• “Stick to Auto model only, which defeats the purpose of paying for premium models.” - Twitter

Cursor’s defense: Usage-based pricing better reflects actual costs and is fairer.

Developer counterpoint: We’re paying for a tool, not a metered service. Give us predictable pricing like every other development tool.

❌ Performance Issues on Large Codebases

Cursor struggles with massive projects:

Problems reported:

• Indexing 100K+ line codebases takes 5-10 minutes
• AI responses slow down in huge monorepos
• Memory usage spikes (2-4 GB RAM)
• Occasional crashes on large projects

Workarounds:

• Exclude node_modules, build artifacts from indexing
• Use .cursorignore file to limit scope
• Restart Cursor periodically to clear caches

Not a dealbreaker for most projects under 50K lines, but enterprise monorepos may struggle.

❌ Subscription Required for Best Features

The free “Hobby” tier is essentially a demo:

• Severely limited Agent requests
• Basic Tab completion
• Can’t access premium models

Reality: To use Cursor meaningfully, you’re paying $20/month minimum. No “freemium” tier for regular use.

Comparison: GitHub Copilot offers a free tier for students/OSS maintainers. Cursor doesn’t.

❌ Lock-In Concerns

Cursor is built on VS Code, but it’s not VS Code:

What happens if:

• Cursor shuts down or gets acquired?
• Pricing increases again?
• You decide to switch away?

Migration risk: Your workflow becomes Cursor-dependent. Switching back to VS Code means losing codebase-aware AI.

Mitigation: Since it’s VS Code underneath, you CAN export settings and switch. But you’ll miss Cursor’s AI capabilities.

❌ Can Still Generate Buggy Code

AI is powerful, not perfect:

Common issues:

• Suggests outdated library APIs
• Generates code with subtle bugs
• Misunderstands requirements occasionally
• Hallucinates function names that don’t exist

Critical rule: Always review and test AI-generated code. Never blindly accept Composer changes.

Developer reality: “Cursor makes me 3x faster, but I still spend 50% of my time reviewing and fixing AI suggestions.” - Blog post

❌ Requires Learning Curve

Despite being “VS Code with AI,” mastering Cursor takes time:

• Learning effective prompting
• Understanding when to use Chat vs Composer vs Tab
• Knowing which model to select for which task
• Managing credit usage to avoid overages
• Setting up context rules effectively

Estimate: 1-2 weeks of daily use before you’re productive, 4-6 weeks to truly master it.

Cursor vs GitHub Copilot: Which is Better?

GitHub Copilot is Cursor’s primary competitor in the AI coding assistant space.

Feature Comparison

When Copilot Wins

Choose GitHub Copilot if:

• Budget matters: $10 vs $20/month
• You want predictable costs
• You’re a student or OSS maintainer (free tier)
• You work in small files and don’t need codebase awareness
• Lightweight extension > full editor
• You already use VS Code and don’t want to switch

When Cursor Wins

Choose Cursor if:

• You work on complex, multi-file projects
• Codebase-aware AI is worth $10/month extra
• You frequently refactor across multiple files
• Model selection matters (access to Claude)
• You want cutting-edge AI coding features
• $20/month isn’t a financial constraint

Real Developer Opinions

“Cursor is Copilot on steroids” - Common sentiment
“Copilot is 80% as good at 50% the price” - Budget-conscious view
“Tried both, staying with Cursor. Codebase awareness is irreplaceable.” - Power user
“Switched back to Copilot after pricing changes. Predictability matters.” - Freelancer

Honest take: If you bill $50+/hour as a developer, Cursor’s $20/month is a no-brainer. If you’re a student, hobbyist, or budget-constrained, Copilot’s $10/month offers better value.

Cursor vs Continue.dev (Open Source)

Continue.dev is an open-source alternative gaining traction.

Continue.dev advantages:

• ✅ Free and open source
• ✅ Works with VS Code and JetBrains IDEs
• ✅ Bring your own API keys (cheaper long-term)
• ✅ Full privacy control

Cursor advantages:

• ✅ Better out-of-box experience
• ✅ More polished UI
• ✅ Superior codebase indexing
• ✅ Dedicated team shipping updates

Who should use Continue.dev:

• Developers wanting full control
• Those with privacy concerns
• Hackers comfortable with configuration
• Budget-conscious users with API keys

Who should use Cursor:

• Developers wanting “it just works”
• Teams needing consistent experience
• Those without time to configure tools

Real Developer Experiences

HackerNews Discussions

Positive:

• “Cursor increased my productivity 5x. I can build features in hours that took days before.”
• “The codebase understanding is unlike anything else. It’s like having a senior dev on call.”
• “Despite pricing controversy, still the best AI coding tool available.”

Critical:

• “Pricing changes ruined trust. Went back to VS Code + Copilot.”
• “Over-reliance on AI is making me a worse developer. I’ve stopped learning.”
• “Performance on my large monorepo is terrible. Constant lag.”

Reddit r/cursor

Common praise:

• Multi-file refactoring works brilliantly
• Composer mode is genuinely transformative
• Tab completion better than Copilot

Common complaints:

• Pricing unpredictability is unacceptable
• “Max Mode” credit costs are insane
• Should offer fixed pricing tier option

Twitter/X Developer Community

Success stories:

• “Built an entire CRUD app in 4 hours using Cursor Composer. Would’ve taken 2 days manually.”
• “Cursor helped me learn a new framework 10x faster. Asked questions about patterns in existing code.”

Concerns:

• “Worried about over-dependence. What if Cursor goes away?”
• “Credit pool ran out mid-sprint. Killed my flow.”

Agency/Team Adoption

Teams that adopted Cursor report:

• 30-50% productivity gains on average
• Reduced time from idea to working prototype
• Onboarding new developers faster (AI explains codebase)
• Concerns about cost scaling with team size ($40/user/month)

Is Cursor Worth It? The Verdict

Cursor is absolutely worth $20/month if:

✅ You’re a professional developer billing $50+/hour
✅ You work on complex, multi-file projects regularly
✅ Codebase-aware AI would save you 2+ hours/week
✅ You can stick primarily to the unlimited “Auto” model
✅ You value cutting-edge AI capabilities
✅ Predictable costs aren’t mission-critical for you

Skip Cursor or use free alternatives if:

❌ You’re a student, hobbyist, or learning to code
❌ Budget is tight ($20/month feels expensive)
❌ You work mostly on small projects or scripts
❌ GitHub Copilot ($10/month) meets your needs
❌ You prioritize predictable billing
❌ You prefer lightweight tools over full editors

The ROI Calculation

For a developer billing $75/hour:

Cursor cost: $20/month ($240/year)
Time saved: 5-10 hours/month (conservative estimate)
Value of time saved: 7.5 hours × $75 = $562.50/month
Net benefit: $562.50 - $20 = $542.50/month in value

Break-even: Save just 20 minutes/month to justify the cost.

At professional rates, Cursor pays for itself if it saves you 20 minutes per month. For most developers, it saves hours.

For a hobbyist not billing:

Cursor cost: $20/month
Value: Learning faster, building projects quicker
Alternative: GitHub Copilot ($10/month) or Continue.dev (free)

Verdict: Hard to justify premium over cheaper alternatives unless you specifically need codebase awareness.

Getting Started with Cursor

Migration from VS Code

1. Download Cursor from cursor.sh
2. Install “Settings Sync” extension in VS Code
3. Export your settings (themes, extensions, keybindings)
4. Import into Cursor (it’s VS Code, so everything works)
5. Start with free Hobby tier to test

Migration time: 15-30 minutes for most developers.

Best Practices from Power Users

Stick to Auto model for routine work:

• Reserve premium models for complex problems
• Auto model is unlimited and often sufficient
• Avoid Max Mode unless truly necessary

Use @-mentions effectively:

• Reference specific files: @filename.ts
• Reference functions: @functionName
• Reference docs: @README.md
• Gives AI exactly the context needed

Review all Composer changes:

• Never blindly accept multi-file edits
• Use git diff to review changes
• Test thoroughly before committing

Set up .cursorignore:

• Exclude build artifacts, dependencies
• Reduces indexing time dramatically
• Improves AI response quality

Monitor credit usage:

• Check remaining credits in settings
• Switch to Auto model if running low
• Avoid surprises at month-end

Conclusion: Best AI Coding Tool, Despite Flaws

Cursor is the most sophisticated AI coding assistant available in 2025. Its codebase-aware AI, multi-file editing capabilities, and superior autocomplete genuinely make developers more productive—often dramatically so.

However, the June 2025 pricing changes introduced unpredictability that damaged trust and drove some users away. The shift from fixed limits to variable credit pools solved Cursor’s cost structure problems but created budgeting problems for users.

For professional developers billing $50+/hour, Cursor remains a no-brainer investment. The productivity gains vastly exceed the monthly cost, even accounting for occasional credit overages.

For students, hobbyists, and budget-conscious developers, alternatives like GitHub Copilot ($10/month) or Continue.dev (free) offer better value. You lose codebase awareness, but save money.

The real question isn’t “Is Cursor the best AI coding tool?” (it is). The question is: “Is the premium over alternatives worth it for your specific situation?”

For many professionals: Yes, absolutely.
For many hobbyists: Probably not.

Know which category you’re in before subscribing.

Last updated: February 2025 | Pricing and features verified from cursor.com and developer reports