Monthly Cost Without Caching
$1.50K
Token Cost Reduction
0.32%%
Annual Savings
$5.83K
Caching 300 tokens per request with a 60% hit rate reduces monthly token costs from $1,500 to $1,014, achieving a 32.4% cost reduction. For 1,000,000 monthly API calls, this generates $486 in monthly savings and $5,832 annually, based on $3 per million input tokens vs $0 per million cached tokens.
Prompt caching typically delivers the strongest ROI when you have consistent system instructions, knowledge base context, or reference examples that appear in most requests. Organizations often see cache efficiency improve as applications mature and prompt patterns stabilize.
Cache strategies become increasingly valuable at higher API volumes, with the percentage savings remaining consistent while absolute savings scale linearly with usage. Organizations often track cache performance metrics to identify additional optimization opportunities through prefix length adjustments and hit rate improvements.
Monthly Cost Without Caching
$1.50K
Token Cost Reduction
0.32%%
Annual Savings
$5.83K
Caching 300 tokens per request with a 60% hit rate reduces monthly token costs from $1,500 to $1,014, achieving a 32.4% cost reduction. For 1,000,000 monthly API calls, this generates $486 in monthly savings and $5,832 annually, based on $3 per million input tokens vs $0 per million cached tokens.
Prompt caching typically delivers the strongest ROI when you have consistent system instructions, knowledge base context, or reference examples that appear in most requests. Organizations often see cache efficiency improve as applications mature and prompt patterns stabilize.
Cache strategies become increasingly valuable at higher API volumes, with the percentage savings remaining consistent while absolute savings scale linearly with usage. Organizations often track cache performance metrics to identify additional optimization opportunities through prefix length adjustments and hit rate improvements.
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