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Economicspe-citation-104P1

Prompt caching can cut API costs by up to 50%

Up to 50% API cost reduction
LLM Economics Review

Context & Methodology

When using Anthropic's prompt caching for repetitive long-context system instructions.

Applies To

claude-3-opusclaude-3-sonnet

Confidence Level

High

Implementation Effort

low

Recommendation

test

Execution Priority

P1

Put This Evidence to Work

Use the STCO framework to implement findings like this in structured, testable prompts.

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ROI Calculator Token Calculator Prompt Templates

Structured prompts enable GPT-3.5-class models to match GPT-4 output quality on 78% of classification tasks, at 1/30th t.—Khattab et al., 'DSPy: Compiling Declarative Langu…