Short answer
Pick VS Code if you want a free editor with Microsoft's full extension Marketplace and AI you can add or leave out: GitHub Copilot has a free plan, and the agent can also run on the Claude or Codex harness or on your own API key. Pick Cursor if you want an editor built around its agent: Cursor's own models, cloud agents and event-driven Automations in one subscription, from $8 a month. Trying Cursor is cheap, because it imports VS Code settings, keybindings and extensions in one click.
Cursor vs VS Code at a glance
| Cursor | VS Code | |
|---|---|---|
| What it is | AI code editor, sold with The X Subscription | Free code editor from Microsoft, with AI through GitHub Copilot |
| Price | Free plan; paid from $8 a month | Free; AI on Copilot Free, or Copilot Pro at $10 a month |
| License | Not open source | A Microsoft build of the MIT-licensed Code - OSS; the Copilot Chat extension is MIT too |
| Extensions | Open VSX registry; not every Marketplace extension is listed | VS Code Marketplace |
| AI models | Grok 4.7 and Composer 2.5 from the plan's weekly pool; Claude, GPT, Gemini and others at API list price on Premium and up | Models from several providers through Copilot, your own API key, or a local model |
| Agents | Built in: Agents Window, Projects, Design Mode | Chat view and Agents window, on the Copilot, Claude or Codex harness |
| Completions | Tab | Inline suggestions through Copilot; 2,000 a month on Copilot Free, unlimited on Pro |
| Cloud agents | Cloud agents and Automations on Premium ($30) and up | Copilot cloud agent on paid Copilot plans; cloud automations in preview |
| Customizing the agent | Rules, skills, subagents, hooks, MCP, plugins | Project instructions, skills, custom agents, hooks, MCP, plugins |
| Terminal agent | Cursor CLI (agent) | Copilot CLI, in every Copilot plan |
| Platforms | macOS, Windows, Linux | macOS, Windows, Linux |
Pricing
Cursor
- Free$0Limited agent and chat requests.
- Plus$8/moGrok models only, from a weekly usage pool shared with Grok.
- Premium$30/mo4x Plus usage; cloud agents and Automations; third-party models at API list price.
- Super$100/mo15x Plus usage; priority at peak times.
- Ultra$200/mo50x Plus usage.
- TeamsFrom $30 per user/moCentral billing, SSO, shared rules, skills and plugins.
Checked Nov 11, 2026 on cursor.com
VS Code
- VS CodeFreeFree for private or commercial use.
- Copilot Free$02,000 completions a month; limited chat and agent use.
- Copilot Pro$10/moUnlimited completions; $15 of AI credits a month; cloud agent and code review.
- Copilot Pro+$39/mo$70 of AI credits a month.
- Copilot Max$100/mo$200 of AI credits a month.
- Your own keyPer tokenChat and agents on your provider's API key. Inline suggestions still need Copilot.
Checked Nov 11, 2026 on github.com
For light use, VS Code with Copilot Free costs nothing. The first paid steps are close: Copilot Pro is $10 a month with unlimited completions and $15 of AI credits for chat and agents, and Cursor Plus is $8 with Cursor's own Grok models. They part ways on other vendors' models. Copilot pays for them from its AI credits; Cursor offers them from Premium ($30) at API list price on top of the plan.
Same habits, different extension stores
VS Code is Microsoft's editor. It is free for private or commercial use, and it is a Microsoft distribution of the MIT-licensed Code - OSS repository. Microsoft's own FAQ says it is more accurate to call VS Code "built" on open source than open source.
Cursor is a separate app that shares VS Code's default shortcuts. It imports your VS Code settings, keybindings, themes and extensions in one click (Settings, then General, Account and Import), and the two can be open on the same project at once.
The catch is the extension store. Cursor installs from the Open VSX registry, not the VS Code Marketplace, and its docs say that not every VS Code extension is listed or works exactly the same way. If your work depends on an extension Microsoft publishes, check that it is on Open VSX before you move.
AI in VS Code is more than autocomplete now
The old summary, "VS Code is an editor with a chat panel", is out of date. As of November 2026:
- Agents run in the Chat view and in an Agents window, where you assign tasks and manage sessions across projects.
- Harnesses: you choose Copilot, Claude or Codex, each with its own tools and workflow.
- Models come from a GitHub Copilot plan, your own API key or a supported local model. Inline suggestions are the exception: they need the Copilot service.
- Automations run a saved prompt on a schedule on your machine. Cloud automations, in preview, run scheduled or event-triggered work on a repository while your computer is off.
- Customizing works through project instructions, skills, custom agents, hooks, plugins and MCP servers.
GitHub open sourced the Copilot Chat extension under the MIT license. The Copilot service behind it stays closed.
What Cursor adds
Cursor's case is that the pieces come from one vendor and are built into the editor:
- Its own models. Grok 4.7 and Composer 2.5 come out of the plan's weekly usage pool, so there is no per-token bill for them.
- Agent surfaces. The Agents Window, Projects for longer work, and Design Mode for iterating on UI.
- Cloud agents and Automations. From Premium, an agent can start on a cron schedule or on an event: a pull request, a finished CI run, a Slack message, a Linear issue, a Sentry or PagerDuty alert, or a webhook. Bugbot reviews pull requests.
- Hooks.
hooks.jsoncovers 21 events, including two for Tab. - A CLI.
agentin the terminal, withagent -pfor scripts and CI.
The editor matters less than it used to
The strongest coding agents are not tied to either editor. The Claude Code extension installs in VS Code and in Cursor and runs on a Claude plan. The Codex extension supports VS Code, Cursor and Windsurf and runs on a ChatGPT plan. Both also work from a terminal next to any editor.
So a low-risk way to decide: stay in VS Code, add one of those agents, and move to Cursor only if you want its Tab, its own models or its Automations. Our Cursor vs Claude Code and Codex vs Cursor pages cover those pairings.
Which to pick
Pick Cursor if
- You want the agent at the center of the editor, not in a side panel.
- You want cloud agents that start on events from GitHub, Slack, Linear or Sentry.
- Cursor's own models are enough for you, at $8 a month.
- Your extensions are on Open VSX.
Pick VS Code if
- You want to pay nothing, or $10 a month.
- You rely on extensions that are only in Microsoft's Marketplace.
- You want to choose the agent harness: Copilot, Claude or Codex.
- You want to bring your own API key or a local model.
Also consider
- BriefkinWe make thisWhichever editor wins, the agents in it stop and wait for you. Briefkin's installer adds a hook to Cursor, Claude Code, Codex and Copilot CLI, shows their sessions on one board (working, needs you, done or failed), and pings you on Telegram when a Claude Code or Codex session stops for a permission.See how it works
- Claude CodeAn agent that installs in both editors and runs on a Claude plan. See Cursor vs Claude Code.
- GitHub CopilotThe AI inside VS Code, compared on its own. See Cursor vs Copilot.
- Windsurf (Devin Desktop)Another AI editor that imports your VS Code setup. See Windsurf vs Cursor.
Questions
Is VS Code free?
Yes. Microsoft's FAQ says VS Code is free for private or commercial use. The AI features run on GitHub Copilot, which has a free plan with 2,000 completions a month, or on your own API key for chat and agents.
Is Cursor free?
Cursor has a free plan with limited agent and chat requests. Paid plans start at $8 a month for Plus, which includes Cursor's own Grok models, as of November 2026.
Do my VS Code extensions work in Cursor?
Many do. Cursor imports your VS Code extensions, themes, settings and keybindings in one click, but it installs extensions from the Open VSX registry, not the VS Code Marketplace, and Cursor's docs say not every extension is listed or works exactly the same way.
Can I use Cursor and VS Code at the same time?
Yes. They are separate applications, and Cursor's docs say you can use both on the same projects.
Does VS Code have an AI agent like Cursor's?
Yes. VS Code runs agents in the Chat view and in an Agents window, on the Copilot, Claude or Codex harness, with models from a Copilot plan, your own API key or a local model.