Claude Code Is Now 100% Free – Step‑by‑Step Setup Guide

12 May 2026 10:37 323,657 views

You can now use Claude-style coding assistance in VS Code completely free by routing it through OpenRouter and a zero-cost model. This guide walks you through the exact setup plus three key tips for actually shipping real projects with AI.

Want Claude-style AI coding help in VS Code without paying a cent? With OpenRouter and a free model, you can get a powerful code assistant running locally and start shipping real projects today.

Below is a simple, step‑by‑step walkthrough of the setup, plus three crucial tips for actually building scalable apps with AI instead of getting stuck in "vibe coding" mode.

How the Free Claude Code Setup Works

The idea is straightforward: instead of paying for an official Claude API, you connect your VS Code Claude extension to OpenRouter, then use one of its free coding-capable models. Everything is configured locally inside your project.

This gives you an AI coding assistant that feels similar to Claude Code, but runs through a different backend model that costs $0.

Step 1: Create a Local Claude Config in Your Project

Start with a new or existing project in VS Code.

1. Create a config folder

In your project root, create a new folder named .claude (or .Claude depending on the extension’s convention).

2. Add a local settings file

Inside that folder, create a file called settings.json.local.
This file will override the default Claude Code configuration only for this project, so you can safely experiment without affecting other workspaces.

3. Paste the configuration template

Paste the provided configuration snippet (from the video or your notes) into settings.json.local. You’ll be filling in three key fields:

auth_token – your OpenRouter API key
model – the free model you choose
base_url – OpenRouter’s API endpoint

We’ll grab these values in the next steps.

Step 2: Get a Free OpenRouter API Key

Now you need an API key from OpenRouter so Claude Code can talk to the free models.

1. Create an OpenRouter account

Go to openrouter.ai in your browser.
Sign up or log in to your account.

2. Generate an API key

In your OpenRouter dashboard, go to Personal → Settings → API Keys.
Create a new key and give it a clear name like claude-code-free.
Click Create, then copy the generated API key.

3. Add the key to your Claude config

Go back to your settings.json.local file in VS Code.
Paste the API key into the auth_token (or equivalent) field.
Save the file.

This connects your local Claude Code setup to OpenRouter.

Step 3: Choose a Free Model for Coding

Next, you need to pick a model that’s both free and good at code.

1. Browse free models on OpenRouter

In OpenRouter, go to the Models page.
Use the search bar and type "free".
You’ll see a list of models with a cost of $0 per request.

Some examples mentioned include:

Coding-focused models from NVIDIA
MiniMax M2.5, a newer model that works well for code

2. Copy the model identifier

Click the model you want to use.
Copy its full model name/ID exactly as shown (for example, something like minimax/minimax-2.5 – the exact string will depend on OpenRouter’s listing).

3. Add the model to your config

Paste the model ID into the model field in settings.json.local.
Save the file.

Step 4: Set the OpenRouter Base URL

Finally, point Claude Code to the correct API endpoint.

1. Find the base URL

On OpenRouter’s docs or model page, copy the main API base URL (for example, https://openrouter.ai/api/v1 – use the exact URL from their documentation).

2. Add it to your settings

In settings.json.local, paste this into the base_url (or equivalent) field.
Save the file.

You can ignore any advanced fields for now; the three essentials are the API key, model name, and base URL.

Step 5: Test Your Free Claude Code Setup

With configuration done, it’s time to check everything is wired correctly.

1. Open a terminal in VS Code

Go to Terminal → New Terminal in VS Code.

2. Start the Claude Code interface

Run the command or open the panel your Claude extension uses to start a chat (this depends on the extension you installed).

3. Select your free model

In the model dropdown, you should now see the free model you configured, such as MiniMax M2.5.
Select it and send a simple message like Hi.

If everything is set up correctly, you’ll get a response from the model.

4. Confirm it’s really free

Go back to OpenRouter and open Activity → Logs.
You should see your request listed with the model name and a cost of $0.

At this point, you have a working, free Claude-style coding assistant inside VS Code.

Three Critical Tips for Building Real Apps with Free Models

Getting the setup working is the easy part. The difference between toy demos and real products comes from how you work with the AI. Here are three practical rules that were used to build a full cardio workout generator app in about an hour.

1. Keep Your App Modular and File Sizes Small

AI models work within a context window – a limit on how much code and text they can reliably handle at once. If you dump your entire app into a few giant files, the model will:

Lose track of earlier parts of the file
Start hallucinating or re-breaking things you already fixed
Struggle to understand the overall structure

Instead:

Break your project into small, focused files, each doing one clear job.
Aim to keep files under roughly 600 lines of code whenever possible.
Organize your folders so features are clearly separated (for example, auth/, workouts/, ui/, etc.).

This makes it much easier for the AI to:

Fully understand a file in context
Safely modify or extend individual parts
Connect modules together without breaking everything

Pro tip: Add a rule in your project’s prompt file (for example, a claude.md or similar) that explicitly tells the AI to keep files small and modular. That way you don’t have to repeat this rule in every prompt.

2. Understand Your App’s Building Blocks Before Prompting

AI will not protect you from problems you don’t know exist. If you’re building something like a multi-user app where several people can edit the same data at once, you need to understand concepts like:

Race conditions – when two users save at the same time and overwrite each other’s changes
Data consistency – ensuring your database doesn’t end up in a broken state
Authentication and authorization – who can access or change what

If you’ve never heard of race conditions, you won’t think to mention them in your prompts. The AI will happily generate code that seems fine in solo testing, but fails badly when multiple users hit it at once.

Your job as a builder is not to hand-write every line of code. Your job is to:

Understand the key concepts and risks in your app
Tell the AI what to watch out for
Ask for specific patterns or safeguards

That’s how you move from "blind vibe coding" to building real, scalable applications. If you’re interested in this mindset for other creative workflows, you might also like our guide on bulk-creating stylized videos with free AI tools, which follows a similar "understand the building blocks first" approach.

3. One Task per Session: Test, Then Push to GitHub

Free or smaller models are powerful, but they can be more brittle than top-tier paid models. To stay safe and productive, use a disciplined workflow:

1. Plan features as tiny tasks

Create a simple plan markdown file in your repo.
Break every feature into small, clear tasks (for example, "Add workout duration selector", "Validate form inputs", "Save workout to database").

2. One task per AI session

Pick a single task.
Prompt the AI to help you implement just that one thing.
Avoid mixing multiple unrelated changes in the same session.

3. Test manually

Run your app.
Manually test the new behavior end-to-end.
Fix any obvious issues before moving on.

4. Commit and push to GitHub

Once the task works, commit the changes with a clear message.
Push to GitHub (or your preferred Git host).

This gives you a clean, step-by-step history of your app. If the AI breaks something later, you can always:

Revert to a known good commit
Compare diffs to see what went wrong
Restore a specific feature without losing everything

This workflow is especially important when using free models, which may occasionally produce more fragile or inconsistent code than premium options.

Start Building Real Projects for Free

With this setup, you can:

Use a Claude-style coding assistant in VS Code at zero cost
Experiment with different free models on OpenRouter
Build and ship real apps using a structured workflow

Combine the free Claude Code configuration with a modular codebase, a solid understanding of your app’s core concepts, and a disciplined "one task per session" approach, and you’ll be able to move from ideas to production-ready tools quickly.

If you enjoy working with free, high-leverage AI tools, you may also want to explore our guide on running ACE 1.5 XL, a powerful free local AI music generator to complement your coding projects.