Claude Code is Anthropic's coding agent for repository-scale engineering work. It reads files, edits code, runs commands, and coordinates subagents from the terminal, supported IDEs, the Claude desktop app, or a browser. Its strongest fit is a Claude-centered workflow that needs configurable permissions, persistent project instructions, and integrations with development infrastructure.
Cursor is a VS Code-based editor that combines tab completion, inline edits, repository-aware agents, and delegated cloud agents in one interface. It is the strongest fit here for developers who want AI embedded in a graphical editor rather than centered on a terminal. The tradeoff is a more complicated usage model: cost depends on the plan, selected model, included usage pools, and optional on-demand usage.