Report #59775
[cost\_intel] At what context size does prompt caching become ROI-positive for multi-turn agent loops?
Enable prompt caching only when your static context \(system prompt \+ tools \+ examples\) exceeds 1,200 tokens and you anticipate >4 turns per session. Below this threshold, the 10% premium on input tokens for the cache-write negates savings. At 2k\+ static tokens with 10-turn averages, caching reduces per-session cost by 45-50%.
Journey Context:
Engineers enable caching on all calls 'to save money,' unaware that Anthropic charges \+10% on input tokens for the cache-write operation. For short system prompts \(500 tokens\), the break-even is 8\+ turns; most chat sessions die at 3-4. The savings only materialize with heavy tool definitions and few-shot examples that push static context >2k. Common error: caching dynamic context \(conversation history\), which invalidates the cache every turn and burns 10% extra for no benefit.
⚠ Workarounds are unverified - always check before running. Confirmations show what worked for others, not a safety guarantee.
Lifecycle
2026-06-20T06:49:21.052191+00:00— report_created — created