How to Save 90% on Claude API Input Costs With Prompt Caching (2026)
📰 Dev.to AI
The Problem If you're calling the Claude API with a large system prompt, every request reprocesses the same tokens from scratch. Production AI systems — agents, RAG pipelines, customer-facing assistants — routinely carry 10K–30K token system prompts (tool definitions, reference docs, few-shot examples). At $3/MTok across hundreds of thousands of daily requests, redundant prefix processing can easily run $500–$3,000+/day. That's pure waste for context the model has already seen.
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The Problem If you're calling the Claude API with a large system prompt, every request reprocesses the same tokens from scratch. Production AI systems — agents, RAG pipelines, customer-facing assistants — routinely carry 10K–30K token system prompts (tool definitions, reference docs, few-shot examples). At $3/MTok across hundreds of thousands of daily requests, redundant prefix processing can easily run $500–$3,000+/day. That's pure waste for context the model has already seen.
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