Claude Code vs Cursor

These two tools do overlapping jobs in very different ways, and the difference matters more for a non-technical founder than it does for an engineer. Here's what each actually is, how to get it running, and which one to start with.

The short version

Claude Code, properly

Claude Code runs in your terminal. You point it at a folder, describe what you want, and it reads files, writes files, runs commands and reports back. There's no graphical interface — which sounds like a downside, and for the first hour it is, and then it stops mattering.

Installing it

1. Open your terminal (on a Mac, press ⌘+Space, type "Terminal", hit enter; on Windows, open "Windows Terminal" or "PowerShell" from the Start menu).
2. Paste the install command from docs.claude.com/en/docs/claude-code. There's a one-line native installer, and an npm route if you already have Node.js. Use whichever the docs list first — it changes occasionally, which is exactly why I'm sending you to the source rather than printing a command that will rot.
3. Type claude and press enter. It'll walk you through logging in with your Claude account in a browser.
4. From then on: cd into a project folder, type claude, and you're in.

The handful of commands worth knowing on day one

Cursor, properly

Cursor is a full code editor. If you've ever seen a developer's screen — files down the left, code in the middle — that's this. It's built on VS Code, which is the most popular editor in the world, so every tutorial you find for VS Code also applies.

Download it from cursor.com, install it like any normal app, and open your project folder with File → Open Folder.

It has three distinct AI modes, and people muddle them:

• Tab. As you type, it greys out a suggested continuation. Press Tab to accept. Eerily good, and the thing you'll miss most in a plain terminal.
• Inline edit (⌘/Ctrl+K). Select some code, describe a change, see it applied right there with the before-and-after highlighted. Perfect for "make this heading smaller" or "this copy should say X".
• Agent (⌘/Ctrl+I). The Claude Code-like mode: a chat panel that reads and edits across many files. This is where the real building happens.

The next page is a proper visual tour of that window — what each panel is for, how to read a diff, and how to run Claude Code inside it. For now, two habits make Cursor much better immediately. First, @-mentions: typing @ in the chat lets you attach a specific file, folder or documentation set, which is you manually putting things on the AI's desk — enormously effective. Second, screenshots: you can paste an image straight into the chat. Given your design background, "here's the current state, here's the Figma frame, close the gap" is a workflow you'll use constantly.

What you'll pay

Prices move, so treat these as the shape of it rather than gospel, and check the pricing pages before you commit.

All of these bill in US dollars. The Australian figures below assume roughly 1 USD ≈ A$1.55 — so they move with the exchange rate, and your card may add a foreign-transaction fee on top. Most of these services also add 10% GST for Australian customers.

What about the others?

You'll see Windsurf, Replit, Lovable, v0, Bolt, GitHub Copilot and a new one every fortnight. Broadly:

• Browser-based builders (Lovable, v0, Bolt, Replit) get you something visible fastest, and are genuinely great for a throwaway prototype or a landing page. The catch is the ceiling: when you need something they don't do, you're stuck, and getting the code out into a normal project is often unpleasant. Fine for validating a look. Risky as the foundation of a business.
• Copilot is mostly autocomplete-plus. It's an assistant for people who already write code, rather than a builder for people who don't.

The reason this guide points at Claude Code and Cursor is that both work on ordinary files on your computer in an ordinary project structure. Nothing is locked in. If you hire a developer in month four, they can open your project and get on with it — and that portability is worth far more than a faster first evening.

I'm a non-technical founder on [macOS / Windows 11 / Linux]. I've just installed [Claude Code and/or Cursor] and I've never used a terminal or a code editor before.

Walk me through setting up a clean development environment, one step at a time, waiting for me to confirm each step before moving on. Cover:

1. Checking what I already have installed (and how to tell)
2. Installing Node.js, and explaining what it is and why a web project needs it
3. Installing Git, and checking it works
4. Setting my Git name and email
5. Where on my computer I should keep projects, and why that location

For each step: tell me exactly what to type, what output means success, and what the two most likely error messages mean if it goes wrong. Assume I will panic at the first red text I see, so tell me in advance which red text is harmless.

I want to understand the practical difference between terminal-based AI coding agents (like Claude Code) and editor-integrated ones (like Cursor's agent mode).

My situation: non-technical founder, building [describe your app in one line], working alone, on a small budget.

Rather than a feature table, describe how each tool would feel across five real moments:
1. Starting a brand new project from nothing
2. Making a small visual tweak to something that already works
3. Adding a feature that touches five or six files at once
4. Debugging something broken that I don't understand
5. Coming back after two weeks away and re-orienting myself

For each moment say which tool I'd be happier in and why. Then tell me honestly whether paying for both is justified at my stage.