Claude Code: Features, Installation, Pricing and How It Works

Johan Tyler
claude code

Claude Code is Anthropic’s agentic coding tool for working with software projects from a terminal. It can examine a codebase, explain unfamiliar files, edit code, run approved commands, execute tests and help developers complete tasks that involve multiple files.

Unlike a standard chatbot that responds only with suggested code, Claude Code can take actions inside an authorized development environment. The developer remains responsible for reviewing its proposed changes, granting permissions and confirming that the resulting software is correct and secure.

Claude Code at a glance

FeatureDetails
DeveloperAnthropic
Primary interfaceCommand line
Main purposeUnderstanding, modifying, testing and debugging software
Supported systemsmacOS, Linux and Windows
AuthenticationClaude subscription, Anthropic Console or supported enterprise platform
Project awarenessCan examine files within an authorized codebase
Command executionAvailable with permission controls
AutomationSupports non-interactive output and structured formats
Enterprise optionsAnthropic API, Amazon Bedrock and Google Vertex AI
Internet connectionRequired for authentication and AI processing

What is Claude Code?

Claude Code is a coding agent that runs from a developer’s terminal. After it is launched inside a project, a user can describe a task in ordinary language—for example:

  • Explain how authentication works in this repository.
  • Locate and fix the cause of a failing test.
  • Add validation to an existing form.
  • Refactor duplicated code without changing behavior.
  • Review recent changes for potential bugs.
  • Run the test suite and investigate failures.

The tool explores the relevant files, forms a plan and proposes or performs actions according to its configured permissions. Because it can work across a repository, Claude Code is suited to tasks that require more context than a single copied code snippet provides.

It is not an independent replacement for a software engineer. Generated code can contain errors, insecure assumptions or changes that do not match the project’s requirements. Human review and testing remain essential.

What can Claude Code do?

Understand an existing codebase

Claude Code can search a repository and trace relationships among files, functions, tests and configuration. This can help developers learn an unfamiliar project or locate the part of a system responsible for a particular behavior.

A broad request such as “explain how a customer order moves through this application” may require the agent to inspect routes, business logic, database models and tests before providing an answer.

Write and modify code

The tool can create features, update existing functions and make coordinated changes across several files. It is generally more effective when the request includes clear requirements and a way to verify completion.

For example, “add an optional phone field” leaves important questions unanswered. A stronger request would specify where the field appears, how it should be validated, whether the database schema must change and which tests should pass.

Debug errors

Developers can provide an error message, failing command or description of unexpected behavior. Claude Code can inspect the relevant code, form possible explanations, make an approved correction and rerun tests.

Its diagnosis is still a hypothesis until supported by evidence. A passing test may confirm one behavior without proving that the entire application is free of regressions.

Run tests and development tools

With permission, Claude Code can run test suites, formatters, linters, type checkers and build commands available in the project. This allows it to verify changes instead of stopping after generating code.

Assist with Git workflows

Claude Code can summarize modifications, inspect commit history and help prepare commits or pull-request descriptions. Any action that publishes code or affects a shared repository should be reviewed carefully before approval.

Connect to other tools

Claude Code supports the Model Context Protocol, or MCP, which can connect an AI application to approved tools and data sources. The safety of an MCP integration depends partly on the server being used and the permissions granted to it. Anthropic does not automatically audit every third-party MCP server.

How to install Claude Code

Requirements and installation methods can change, so developers should consult Anthropic’s current Claude Code setup documentation before installing it.

Anthropic’s documented npm installation command is:

npm install -g @anthropic-ai/claude-code

After installation, open the relevant project directory and launch the tool:

cd your-project
claude

Claude Code then guides the user through authentication. Depending on the account and organization, access may be provided through a Claude subscription, usage-based Anthropic Console billing or an enterprise deployment.

On Windows, Anthropic documents support through Windows Subsystem for Linux or Git for Windows. Exact system requirements should be checked before installation because supported environments can change as the product develops.

Anthropic warns against installing the npm package with sudo, as doing so can create permission and security problems.

Useful Claude Code commands

Claude Code can run interactively or return a result for scripts and automated workflows.

claude

This opens an interactive session.

claude "explain this project"

This begins a session with an initial request.

claude -p "summarize the purpose of this repository"

The -p option returns a result without opening the standard interactive interface.

claude --continue

This continues the most recent conversation associated with the current directory.

claude --permission-mode plan

Plan mode allows the user to examine the proposed approach before implementation. Anthropic’s Claude Code command-line reference documents additional commands, flags and output formats.

Is Claude Code free?

Claude Code does not have one universal price. Cost depends on how the user authenticates and which model or plan is used.

Individual users may access it through an eligible paid Claude plan. Pro and Max plans have different prices and usage allowances, and usage limits may be shared between the Claude application and Claude Code.

Developers using an Anthropic Console account are generally billed according to API consumption. Costs vary with the selected model, the amount of input and output processed, prompt caching and other applicable charges. Large repositories and long agentic tasks can consume more tokens than short requests.

Business customers may receive Claude Code through eligible Team or Enterprise arrangements. Amazon Bedrock and Google Vertex AI have their own billing and account requirements.

Because models, plan prices and usage limits can change, readers should verify the latest figures through Anthropic’s official guidance on Claude plans.

Is Claude Code safe?

Claude Code uses a permission-based approach. Anthropic states that it begins with read-only access and requests approval for higher-impact actions such as editing files or running commands.

Those controls reduce risk but do not eliminate it. Developers should:

  • Review commands before approving them.
  • Inspect the final code diff.
  • Use version control and work on a dedicated branch.
  • Keep secrets out of source files and prompts.
  • Limit access to sensitive directories.
  • Run security checks and the complete relevant test suite.
  • Use isolated development containers for higher-risk work.
  • Install MCP servers only from trusted sources.
  • Avoid disabling permission prompts without a compelling, controlled reason.

Claude Code includes a flag named --dangerously-skip-permissions. As its name indicates, this bypasses permission prompts and can allow commands to execute without individual approval. It should not be used casually, particularly on machines containing credentials, production access or valuable files.

Prompt injection is another concern. Malicious instructions may be hidden in repositories, webpages or data retrieved through connected tools. Permission boundaries and careful review remain important even when the original user request appears harmless.

Claude Code vs. a regular AI chatbot

Claude CodeRegular chatbot
Operates within an authorized development environmentUsually works from text supplied in a conversation
Can inspect multiple project filesMay lack full repository context
Can edit files and run approved commandsTypically suggests code for the user to copy
Can execute tests and react to resultsOften relies on results pasted by the user
Supports terminal automationPrimarily designed for conversation
Requires careful tool permissionsUsually has fewer direct system capabilities

A chatbot may be sufficient for explaining a concept or producing a small isolated function. Claude Code becomes more useful when a task depends on repository-wide context or requires a sequence of implementation and verification steps.

Frequently asked questions

Is Claude Code an IDE?

No. Claude Code is primarily a terminal-based coding agent, although it can complement editors and development environments.

Can non-programmers use Claude Code?

They can, but basic knowledge of files, commands, testing and version control is strongly recommended. Users must be able to judge whether proposed actions are appropriate.

Can Claude Code build a complete application?

It can assist with planning and implementing substantial applications, but output still requires human decisions, testing, security review and maintenance. A request to “build an app” is not enough to guarantee production-ready software.

Does Claude Code work on Windows?

Yes. Anthropic documents Windows support through WSL and Git for Windows. Users should consult the current setup page for exact requirements.

Can Claude Code access every file on a computer?

Its practical access depends on the operating environment and permissions. Anthropic applies project-focused write restrictions and approval controls, but users should still launch it from the correct directory and carefully manage permissions.

Is Claude Code suitable for private repositories?

It can be used with private code, but organizations should review Anthropic’s applicable data terms, retention policies, deployment options and security controls before providing sensitive source code. Enterprise requirements may call for managed policies, audit logging or deployment through an approved cloud platform.

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