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Claude Code explained: what it is and how to set it up

Updated Oct 30, 2026 · Level: Advanced · Every fact comes from Anthropic's own pages and docs. Drafted with AI and checked line by line against those pages.

A chat assistant suggests. An AI agent acts. Claude Code is Anthropic's agent that works inside a folder of files: it reads them, edits them and runs commands to get a job done, then shows you what it changed. If you already pay for Claude, you already have it.

What it does, in plain words

In a normal chat, you paste things in and copy answers out. With Claude Code you point it at a folder and describe the job. It looks around, changes the files and runs commands to check its work. Anthropic's examples include building features, fixing bugs, writing tests, resolving merge conflicts and writing commit messages. ⁴

You choose how much it can do without asking. ³

Which plans include it, and the limits

Claude Code is included in all paid Claude plans and shares one usage pool with Claude on the web, desktop and phone. There's no fixed number of messages: how fast you use it depends on the model, the length of the session and the size of the files. ¹

Plan	Monthly price	Usage (Anthropic's wording)
Free	US$0	No Claude Code ¹
Pro	US$20	More than Free, every 5 hours and every week ¹
Max (formerly Max 5x)	US$100	5x Pro, every 5 hours and every week ¹
Ultra (formerly Max 20x)	US$200	10x Pro every week; no 5-hour limit for verified accounts ¹

Tip: annual billing is often cheaper.

What "verified" means on Ultra. Anthropic checks Ultra accounts automatically, using things like account and payment history, to prevent fraud and abuse. Until yours is verified, a temporary 5-hour limit applies, and Claude Code's "wrapping up" allowance works as it does on Max. Verifying your phone number at checkout is a separate step and doesn't remove it. To check, open Settings > Usage: no "Current session" bar means you're verified. Max and Ultra also have a separate weekly limit for Fable, shared across Claude and Claude Code. ^5,6

When you hit a limit, you can wait for the reset, move up a plan, or turn on usage credits to keep going at API rates. ¹ Full plan details: Claude plans and prices.

Watch out for a stray API key. If your computer has an ANTHROPIC_API_KEY set, Claude Code asks once whether to use it. Say yes and your usage is billed to that API account, not your plan. In scripted runs (claude -p) the key is always used. ⁷

Where it runs

The same Claude Code runs in the Claude desktop app (Mac and Windows, Linux in beta), in a terminal, inside VS Code and JetBrains code editors, and on the web and phone at claude.ai/code. ^4,3 The desktop app is the friendliest: you review each change visually. ⁸

Set it up on a Mac or Windows PC

You need macOS 13 or newer or Windows 10 (version 1809) or newer, and at least 4 GB of memory. ²

Install the Claude desktop app, sign in with your paid account and click the Code tab.
Pick Local and a folder. Choose Local, then Open folder… and pick a small project you know well.
Choose how much it can do alone. Manual asks before editing files or running commands. Plan proposes an approach without changing anything. Accept edits and Auto ask less often. ³

Prefer the terminal? The install commands

Open a terminal and run the line for your system, then open a new terminal window and check it with claude --version. ²

Mac, Linux or WSL: curl -fsSL https://claude.ai/install.sh | bash
Windows PowerShell: irm https://claude.ai/install.ps1 | iex
Windows Command Prompt: curl -fsSL https://claude.ai/install.cmd -o install.cmd && install.cmd && del install.cmd

Then go to your project folder and start it: cd your-project, then claude. It opens your browser to log in the first time. ⁷ It updates itself. On Windows, Anthropic recommends installing Git for Windows too. If something looks wrong, claude doctor checks your setup. ²

Your first session, safely

Work on a copy. Use a copy of the folder, or one saved in git, so changes are easy to undo.
Ask for a plan before big changes. Anthropic suggests asking it to list the files it will touch first, then correcting the list in plain English. ⁹
Read commands before approving them, and keep passwords and keys out of the folder.
Start fresh between jobs with /clear. Anthropic recommends it to save usage. ⁹

Prompt: get to know a folder

Look around this folder and explain in plain English what's in it and what each part does.
Don't change anything yet. Then suggest three small improvements, easiest first.

Prompt: a first small project

In this empty folder, make a simple one-page website that lists free things to do this weekend in [your city], with a spot for me to add my own.
Use plain HTML and CSS only, don't install anything, and tell me how to open the page when you're done.

Work from your phone: Remote Control, Dispatch and cloud sessions

Can I use it from my phone?

Remote Control: steer a session on your own computer from the Claude phone app or a browser. Files stay on your machine, which has to stay on. Start it with claude remote-control, or type /remote-control in a session. Pro, Max, Ultra, Team and Enterprise (on Team and Enterprise an owner has to switch it on). ¹⁰
Dispatch: message a task from your phone; it can start a Code session in your desktop app and notifies you when it's done or needs approval. Pro, Max and Ultra only, not Team or Enterprise. ⁸
Cloud sessions: run on Anthropic's computers and keep going with your laptop closed. Start one at claude.ai/code or in the phone app after connecting GitHub. They count toward your plan's limits, with no extra charge. ¹¹

Going further

What should I learn next?

CLAUDE.md: a notes file in your project that Claude Code reads at the start of every session: your rules, preferences and how the project works. ¹² Anthropic suggests keeping it under about 200 lines. ⁹
Pick the model for the job: Sonnet for most work, Opus when you're stuck (it uses noticeably more of your limit), Haiku for quick, simple edits. Switch with /model. ⁹
Commands that save usage, helper agents and agent teams: Get more out of your Claude plan for less and how to run a small team of AI agents.

Do you need it, or is plain chat enough?

It's worth a try if you work with folders of files or code, you're tired of copying answers back and forth, or you want to build a small tool or website and see it work.

Plain chat is enough if you mostly ask questions, write emails or summarize one document at a time. The Claude app can already create files and run code inside the chat, even on the free plan. ¹ No coding at all? Start with building a mini-app without coding.

Compare coding tools across AI plans: AI coding tools by plan.

Common questions

3 quick questions, answered

Do I need to know how to code?

Not to start. You tell it what you want in plain English. But it can change and delete files, so you need to read what it plans to do and check the result.

Can it damage my computer?

It can only do what you allow. In Manual mode it asks before editing files or running commands, and Plan mode changes nothing. Work in a copy of your folder.

What's the difference between Remote Control and a cloud session?

Remote Control lets your phone steer a session that's running on your own computer, so the computer has to stay on. A cloud session runs on Anthropic's computers and keeps going after you close your laptop, but it works on code stored on GitHub.

Sources (12)

Sources checked Oct 30 to Oct 31, 2026.