# Cursor vs Zed

> Cursor vs Zed: Zed is our pick, leading for beginners and free plans. They split on how usage is metered and what the free plan allows. Verified October 2026.

![Cursor logo](https://www.versusref.com/logos/cursor.png) ![Zed logo](https://www.versusref.com/logos/zed.png)

Cursor (AI IDE with CLI and cloud agents; ships its own Grok/Composer models. Acquired by SpaceX (completed 2026-08-14, per cursor.com/blog/joining-spacex); also segments terminal_agent, cloud_agent.) and Zed (Fast OSS editor with agentic features; free with your own keys or external agents, Pro $10/mo adds $5 of hosted-model tokens at list +10%. Also oss_self_hosted-adjacent (GPL editor, local models).) are AI coding agents platforms, priced from $20/mo and $0 + your model API bill respectively. Below: the bottom line, verified head-to-head facts, and real production costs.

AI coding agents platforms · 40 facts compared · all sourced · pricing verified Oct 2, 2026

## Bottom line

Zed wins four of seven use cases. Cursor's cheapest paid plan is $20/mo, while Zed's is $10/mo with $5 of tokens included. Zed's Personal tier gives 2,000 accepted edit predictions, and together these carry Beginners and Free Plans. Its GPL-3.0-or-later license, local model support and 91,200 GitHub stars win Local Models and Open Source. Cursor takes Enterprise with SOC 2, SSO and self-hosted deployment, Terminal Workflows with background agents, and VS Code as a VS Code fork with codebase indexing. For individuals and open-source teams, Zed leads.

## Verdict summary

| Use case | Winner | Why |
| --- | --- | --- |
| Beginners | Zed | Price and included usage matter most for newer developers. |
| Enterprise | Cursor | Both vendors limit training: Cursor says code is not used for training with Privacy Mode on, and Zed does not train on Zed-hosted model traffic. |
| Free Plans | Zed | What the free plan allows decides this. |
| Local Models | Zed | Local model support is the deciding factor, and Zed states it runs local models while Cursor does not publish that. |
| Open Source | Zed | The license matters most here, and Zed is licensed GPL-3.0-or-later with Apache-2.0 components, while Cursor publishes no license. |
| Terminal Workflows | Cursor | Where the agent runs matters most for shell users. |
| VS Code | Cursor | Editor fit matters most for VS Code users. |

## Cursor vs Zed: head-to-head facts

| Fact | Cursor | Zed | Verified |
| --- | --- | --- | --- |
| How usage is metered | $ usage pool + per-token ([source](https://cursor.com/docs/account/pricing)) | Per-token + own API key ([source](https://zed.dev/docs/ai/plans-and-usage)) | Oct 2 |
| What the free plan allows | Hobby: 'Limited Agent requests', 'Access to Composer' ([source](https://cursor.com/help/account-and-billing/pricing)) | Personal ($0): 2,000 accepted edit predictions ([source](https://zed.dev/pricing)) | Oct 2 |
| Cheapest paid plan (monthly) | $20 ([source](https://cursor.com/docs/account/pricing)) | $10 ([source](https://zed.dev/pricing)) | Oct 2 |
| Top individual plan | $200 ([source](https://cursor.com/docs/account/pricing)) | $10 ([source](https://zed.dev/pricing)) | Oct 2 |
| Usage included at entry tier | n/a | $5 of tokens included (monthly) ([source](https://zed.dev/pricing)) | Oct 2 |
| Rate-limit window | monthly (pools reset with the billing cycle) ([source](https://cursor.com/docs/account/pricing)) | monthly billing cycle ([source](https://zed.dev/docs/ai/plans-and-usage)) | Oct 2 |
| Bring your own API key | true ([source](https://cursor.com/docs/settings/api-keys)) | true - bypasses plan limits ([source](https://zed.dev/docs/ai/plans-and-usage)) | Oct 2 |
| Models available | Grok 4.7, Grok 4.6, Grok 4.5 +11 more ([source](https://cursor.com/docs/account/pricing)) | Claude Fable 5.1/5, Opus 5.5/5/4.8/4.7/4.6/4.5 +12 more ([source](https://zed.dev/docs/ai/models)) | Oct 2 |
| Pick the model per task | ✓  Yes ([source](https://cursor.com/help/account-and-billing/pricing)) | ✓  Yes ([source](https://zed.dev/docs/ai/agent-panel)) | Oct 2 |
| Runs local models | n/a | ✓  Yes ([source](https://zed.dev/docs/ai/use-a-local-model)) | Oct 2 |
| Where it runs | Desktop IDE (VS Code fork), Agents window +10 more ([source](https://cursor.com/docs/cloud-agent)) | Desktop editor (Zed Agent, Agent Panel, Inline... ([source](https://zed.dev/docs/ai/overview)) | Oct 2 |
| Autonomous multi-file edits | ✓  Yes ([source](https://cursor.com/docs/agent/chat/checkpoints)) | ✓  Yes ([source](https://zed.dev/docs/ai/agent-panel)) | Oct 2 |
| Runs terminal commands | ✓  Yes ([source](https://cursor.com/docs/agent/security)) | ✓  Yes ([source](https://zed.dev/docs/ai/tool-permissions)) | Oct 2 |
| Background / cloud agents | ✓  Yes ([source](https://cursor.com/docs/cloud-agent)) | n/a | Oct 2 |
| Opens PRs from issues | ✓  Yes ([source](https://cursor.com/docs/cloud-agent)) | n/a | Oct 2 |
| MCP support | ✓  Yes ([source](https://cursor.com/docs/agent/security)) | ✓  Yes ([source](https://zed.dev/docs/ai/mcp)) | Oct 2 |
| Trains on your code? | Privacy Mode on: not used for training by Cursor or... ([source](https://cursor.com/data-use)) | No training on Zed-hosted model traffic ([source](https://zed.dev/docs/ai/privacy-and-security)) | Oct 2 |
| Zero data retention option | ✓  Yes ([source](https://cursor.com/docs/enterprise/privacy-and-data-governance)) | ✓  Yes ([source](https://zed.dev/docs/ai/privacy-and-security)) | Oct 2 |
| Self-hosted / VPC deployment | ✓  Yes ([source](https://cursor.com/docs/cloud-agent/self-hosted/choose-runtime)) | n/a | Oct 2 |
| License | n/a | GPL-3.0-or-later (with Apache-2.0 components) ([source](https://github.com/zed-industries/zed)) | Oct 2 |
| Supported model providers | n/a | Zed-hosted (Anthropic, OpenAI, Google), API keys +3 more ([source](https://zed.dev/docs/ai/llm-providers)) | Oct 2 |

## Cursor vs Zed pricing: true cost at 3 usage tiers

Real monthly cost at 3 developer profiles: hobbyist (~5 h/week), full-time developer (~25 h/week of daily agent use), team of 5. Most vendors do not publish how much usage a plan covers, so the full-time row spans the cheapest to the top individual plan unless the vendor publishes its own guidance for daily users. Bring-your-own-key and open-source agents show the model bill you pay the provider, never $0.

| Volume | Buyer | Cursor | Zed | Note |
| --- | --- | --- | --- | --- |
| ~5 h/week of agent use | Hobbyist | $20/mo | Free with your own key; plans $10/mo | Side projects and evenings. Priced at each vendor's cheapest paid plan (annual billing where offered), the tier every vendor sells for light use. |
| ~25 h/week, daily multi-file agent tasks | Full-time developer | $60-$100/mo | Free with your own key; plans $10/mo | Daily agent use. Most vendors do not publish how much usage a plan covers, so this shows the span from the cheapest to the top individual plan; where a vendor publishes its own guidance for daily agent users, that figure is used instead. |
| 5 seats | Team of 5 | $200/mo | $150/mo | Priced from each vendor's own team plan: per-seat prices x 5, flat team plans as published. A tool with no published team price shows that rather than a guess. |

## Cursor vs Zed: verdicts by use case

### Beginners → Zed

Price and included usage matter most for newer developers. Zed's cheapest paid plan is $10/mo with $5 of tokens included each month, while Cursor starts at $20/mo and does not publish an entry-tier allowance. Zed's free Personal plan gives 2,000 accepted edit predictions, while Cursor's Hobby plan promises only limited Agent requests and access to Composer. Both offer checkpoints and rollback for undoing mistakes. Cursor lists more surfaces, but that matters less than half the starting price and a stated allowance.

### Enterprise → Cursor

Both vendors limit training: Cursor says code is not used for training with Privacy Mode on, and Zed does not train on Zed-hosted model traffic. The rest of the security checklist separates them. Cursor offers a self-hosted or VPC deployment, which Zed does not publish. Cursor provides SAML/OIDC SSO on Teams ($40/user/mo) and above, while Zed has no SSO. Both offer zero data retention, but Cursor has SOC 2 and admin audit logs, and Zed has no SOC 2.

### Free Plans → Zed

What the free plan allows decides this. Zed's Personal plan includes 2,000 accepted edit predictions at no charge, while Cursor's Hobby plan offers limited Agent requests and access to Composer without a published number. Both support bringing your own API key, and with Zed it bypasses plan limits. If you pay later, Cursor starts at $20/mo, while Zed starts at $10/mo. Zed also runs local models, which Cursor does not publish.

### Local Models → Zed

Local model support is the deciding factor, and Zed states it runs local models while Cursor does not publish that. Zed also lists its supported providers, including Zed-hosted Anthropic, OpenAI and Google models plus API keys and more, and it is licensed GPL-3.0-or-later with Apache-2.0 components. Cursor publishes neither a provider list nor a license. Both support bringing your own API key, and in Zed it bypasses plan limits.

### Open Source → Zed

The license matters most here, and Zed is licensed GPL-3.0-or-later with Apache-2.0 components, while Cursor publishes no license. Zed also lists supported providers, including Zed-hosted Anthropic, OpenAI and Google models plus your own API keys, runs local models, and has 91,200 GitHub stars. If you prefer a hosted option, Zed Pro costs $10/mo with $5 of hosted tokens and Business is $30/seat/mo.

### Terminal Workflows → Cursor

Where the agent runs matters most for shell users. Cursor lists a desktop IDE, an Agents window and more than ten further surfaces, while Zed lists its desktop editor with the Zed Agent and Agent Panel. Both run terminal commands, support MCP and read project rules files. Cursor also offers background or cloud agents, which Zed does not publish, a useful fit for CI-style work. Wider surfaces and background agents give Cursor the edge.

### VS Code → Cursor

Editor fit matters most for VS Code users. Cursor runs in its own editor, which is a VS Code fork, while Zed is its own desktop editor and publishes no VS Code support. Both make autonomous multi-file edits and offer checkpoints and rollback. Cursor also indexes the codebase, which Zed does not publish. Zed does include $5 of tokens monthly at its entry tier, but for staying close to VS Code, Cursor is the clear choice.

## Cursor vs Zed: common questions

### Is Cursor cheaper than Zed?

No. Cursor's cheapest paid plan is $20/mo, while Zed's is $10/mo, which is also Zed's top individual plan. Cursor's top individual plan is $200/mo. For teams, Cursor costs $40/user/mo and Zed costs $30/user/mo. Beyond the plan, Zed charges API list price plus 10%, while Cursor bills on-demand usage at the same per-token API rates.

### Cursor vs Zed: which is better for beginners?

Zed is the better fit for most beginners on cost. Cursor's cheapest paid plan is $20/mo, while Zed's is $10/mo with $5 of tokens included monthly. Zed's free Personal plan includes 2,000 accepted edit predictions, while Cursor's Hobby plan offers limited Agent requests. Both offer checkpoints and rollback, so undoing agent mistakes is covered either way.

### Is Cursor or Zed open source?

Zed is licensed GPL-3.0-or-later with Apache-2.0 components and has 91,200 GitHub stars. Cursor does not publish an open-source license.

### How much do Cursor and Zed team plans cost?

Cursor's team plan is $40/user/mo and Zed's is $30/user/mo. Both also offer an Enterprise plan through contact sales.

### Is Cursor or Zed better for enterprise compliance?

Cursor has SOC 2, SAML/OIDC SSO on Teams ($40/user/mo) and above, admin audit logs and a self-hosted or VPC option. Zed has no SOC 2 and no SSO. Both offer a zero data retention option.

### Can Cursor or Zed run local models?

Zed runs local models and also supports Zed-hosted Anthropic, OpenAI and Google models plus your own API keys. Cursor does not publish local model support, though it does support bringing your own API key.

### What does usage beyond the plan cost on Cursor vs Zed?

Zed charges API list price plus 10% beyond the plan, and bringing your own key bypasses plan limits. Cursor bills on-demand usage at the same per-token API rates. Both reset on a monthly billing cycle.

### What is the top individual plan price for Cursor?

Cursor's top individual plan is $200/mo. Zed's top individual plan is $10/mo, the same as its cheapest paid plan.

### How does code review work in Zed?

Zed offers diff review only: you accept or reject hunks in a multibuffer. Cursor, by comparison, offers Bugbot pull request review.

Source: https://www.versusref.com/coding-agents/cursor-vs-zed/