Cursor vs VS Code (2026): AI Features, Extensions and Pricing Compared

Key Takeaways

• Cursor is built on VS Code, so the layout, shortcuts, settings and most extensions feel familiar. It uses the Open VSX registry rather than Microsoft's Marketplace, so not every extension is available.
• VS Code is free. Its built-in AI runs on GitHub Copilot, which has a free plan (2,000 completions a month plus limited chat and agent use) and paid plans from $10/month. VS Code can also run Claude and Codex (Agentdex profile) agent harnesses, your own API keys and local models.
• Cursor has a free plan. Paid plans are Plus ($8/month, Grok models only), Premium ($30), Super ($100) and Ultra ($200). Third-party models such as Claude, GPT and Gemini need Premium or higher and are billed at API list price on top.
• Pick Cursor if you want one editor where the agent, cloud agents and AI code review are part of the product. Pick VS Code if you want a free editor, Microsoft's extension ecosystem, and freedom to choose your AI tools.
• You do not have to choose forever. Cursor can import your VS Code settings, and both editors can open the same project folder.

Cursor vs VS Code at a glance

Prices come from cursor.com/pricing and GitHub's Copilot plans page as of October 24, 2026. For full breakdowns, see our Cursor pricing and Copilot pricing guides.

How the two editors are related

Cursor started from the open-source code that VS Code is built on, so opening Cursor for the first time feels like opening VS Code: the same file explorer, command palette, terminal and default keyboard shortcuts. Cursor's own help docs say it shares VS Code's default shortcuts and can import your extensions, themes, settings and keybindings in one click.

The difference is what sits on top. Cursor is built around its AI features and is sold as a subscription. VS Code is a general-purpose editor that Microsoft gives away for free, with AI provided by Copilot and other extensions. VS Code keeps getting AI features too, so the gap is less about whether AI exists and more about how each product packages it.

AI features compared

Cursor

• Agent: plans and applies changes across multiple files, runs terminal commands and shows diffs for you to accept or reject.
• Tab completion: predicts your next edit, not just the next line.
• Cloud agents and automations: on Premium and above, agents keep working in the cloud while you do something else.
• Bugbot: AI code review on pull requests, included from Premium.
• Rules: project rules in .cursor/rules tell the agent how your codebase works. Our Cursor rules guide covers how to write them.
• Models: Plus covers Grok models only. Premium and above add Claude, GPT, Gemini and other third-party models, billed separately at API list price.

VS Code

• Inline suggestions: Copilot completions and next edit suggestions as you type.
• Chat and inline chat: ask questions about your code or describe a focused edit.
• Agents: an agent can find relevant code, make changes and run tests. VS Code's docs describe a Chat view for working beside your code and an Agents window for managing several sessions across projects, plus a Plan option where available.
• Agent harnesses: VS Code supports the Copilot harness as well as Anthropic Claude and OpenAI Codex harnesses.
• Model access: use models from your Copilot plan, bring your own API key, or connect a supported local model.
• Customization: project instructions, MCP servers, agent skills and plugins.

In practice, both editors can now take a task, edit several files, run tests and hand you a diff. Cursor puts more of this into one paid product with its own cloud agents and review bot. VS Code gives you a free editor and lets you pick which agent and which model sit inside it. Which agent writes better code depends heavily on the model and how you prompt it, so be wary of any blanket claim that one editor "writes better code".

Extensions and compatibility

This is the most practical difference for many developers. VS Code installs extensions from Microsoft's Visual Studio Marketplace. Cursor uses the Open VSX registry instead, routed through its own marketplace proxy that runs malware and supply-chain checks before an extension is offered.

Cursor's docs are clear about the trade-off: most popular extensions are on Open VSX, but not every Microsoft Marketplace extension is listed there, and Cursor publishes its own Anysphere builds to replace some widely used ones. The same extension ID can also point to a different publisher on Open VSX, so install from publishers you trust.

If your workflow depends on a specific Microsoft extension, such as Live Share for pair programming or Microsoft's remote development tools, check that it or a working replacement is available in Cursor before you switch. Our Cursor extensions guide covers what to install.

Privacy and security

Both editors send code to cloud models when you use cloud AI features, so the real questions are what each vendor does with that data and what controls you get.

Cursor has a privacy mode that can be turned on in settings or enforced by a team admin. Cursor says that when it is on, code data is not used for training by Cursor or its model providers. Its security page lists a SOC 2 Type II attestation and ISO/IEC 27001:2022 and ISO/IEC 42001:2023 certifications. Teams adds SAML/OIDC SSO and team-wide privacy settings; Enterprise adds SCIM, audit logs and controls over which repositories, models and MCP servers people can use.

VS Code works as a plain editor with no AI at all if you want it to. When you enable Copilot, data handling follows your GitHub Copilot plan, and Copilot Business and Enterprise give organizations policy controls. VS Code's docs note that the models, tools and customizations available to you depend on the agent harness, your account and your organization's policies. Because VS Code can connect a supported local model, it is also the easier route if you want some AI help with model processing kept on your machine.

For regulated work, ask both vendors for current compliance reports and data retention terms, and run a small pilot before rolling either out to a whole team.

Pricing compared

Two details change the real cost. First, Cursor's usage allowance refreshes weekly and is shared between Cursor and Grok, and third-party models on Premium and above are billed by usage at API list price on top of the plan. Second, Copilot paid plans include a monthly balance of GitHub AI Credits for chat, agents and premium models, while code completions and next edit suggestions stay unlimited.

For a developer who mainly wants good completions and occasional agent help, VS Code with Copilot Free or Pro is the cheaper route. For a developer who wants cloud agents and AI code review in one product, Cursor Premium is the plan to compare, and you should budget for third-party model usage if you prefer Claude or GPT models. If you are weighing Copilot itself against Cursor, read Cursor vs Copilot.

Performance and day-to-day feel

Cursor indexes your project so its AI understands the codebase, and AI features add background work in any editor. Rather than trust a single benchmark, check it on your own machine: open your largest project in each editor, run your normal tasks for a day, and watch memory use in your system monitor. If you are on an older laptop, VS Code with only the extensions you need is the safer starting point, and you can turn AI features on gradually.

Switching from VS Code to Cursor (or running both)

• Import your setup: in Cursor, open Cursor Settings (Cmd+Shift+J on Mac, Ctrl+Shift+J on Windows and Linux), go to General, then Account, and click Import under VS Code Import. This brings over extensions, themes, settings and keybindings.
• Check your extensions: look for anything missing from Open VSX and find a replacement before you rely on Cursor for real work.
• Keep both: Cursor's docs confirm the two run as separate apps and can open the same projects. Your Git repo and config files do not change.
• Move your instructions: if you wrote Copilot instructions in VS Code, recreate the important parts as Cursor rules so the agent follows the same conventions.

A sensible trial: use Cursor for one week on AI-heavy work such as refactors, test writing and new features, and keep VS Code for everything else. At the end of the week you will know whether the extra features are worth the subscription for the way you actually work.

Which should you choose?

• Choose Cursor if you want an AI-first editor with its agent, cloud agents and Bugbot code review in one place, and you are happy to pay a subscription plus model usage for third-party models.
• Choose VS Code if you want a free editor, need specific Microsoft Marketplace extensions, prefer to pick your own agent and model (including local models), or your company already pays for GitHub Copilot Business or Enterprise.
• Students and beginners: start with VS Code and Copilot Free, then try Cursor's free plan once you know what you want from an AI editor.
• Want an open-source agent instead? Cline (Agentdex profile) runs inside VS Code with your own model keys. See our Cline guide and Cline vs Cursor.

If neither feels right, our Cursor alternatives and Copilot alternatives guides cover other editors and agents.

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FAQ

Is Cursor just VS Code with AI?

Cursor is built on the same open-source foundation as VS Code, so it looks and feels similar. But it is a separate product with its own agent, tab completion, cloud agents, code review and pricing, and it uses the Open VSX extension registry instead of Microsoft's Marketplace.

Is VS Code free?

Yes. VS Code is free. GitHub Copilot inside it has a free plan with 2,000 completions a month plus limited chat and agent use, and paid plans start at $10/month.

Can I use my VS Code extensions in Cursor?

Most popular ones, yes. Cursor imports your extensions, themes, settings and keybindings, but it installs extensions from Open VSX, and not every Microsoft Marketplace extension is listed there. Cursor provides its own builds for some widely used extensions.

How much does Cursor cost compared with Copilot?

Cursor has a free plan, then Plus at $8/month (Grok models only), Premium at $30, Super at $100 and Ultra at $200. Copilot has a free plan, then Pro at $10, Pro+ at $39 and Max at $100. Cursor bills third-party models at API list price on Premium and above.

Can I use Claude in VS Code?

Yes. VS Code supports an Anthropic Claude agent harness alongside Copilot and OpenAI Codex, and Copilot plans include a choice of models. You can also bring your own API key.

Can I run Cursor and VS Code on the same project?

Yes. They are separate apps and can open the same folder and Git repository. Avoid letting agents in both editors change the same files at the same time.

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• Roo Code vs Cursor (2026): Roo Code Is Archived, What to Use Instead
• Bolt vs Cursor (2026): AI App Builder or AI Code Editor?
• Cursor Code Review: How Bugbot and In-Editor Reviews Work (2026)
• Cursor vs Claude Code (2026): Which AI Coding Tool Should You Use?

Part of our Cursor guides hub

Written by Agentdex Editorial. Agentdex is an independent directory reviewing AI coding tools; we are not affiliated with the companies mentioned. Prices and features are as of October 24, 2026, from official sources linked above. Always confirm on the vendor's site.