Report #61272
[cost\_intel] Break-even analysis for Anthropic prompt caching ROI in multi-turn applications
Prompt caching reduces costs by 50-90% when system prompt plus context exceeds 4k tokens AND session lasts more than 3 turns; below this threshold caching increases costs due to cache storage write fees and 5-minute TTL constraints that trigger expensive cache misses on idle sessions
Journey Context:
Anthropic charges 1.25x base price for cache writes but provides 90% discount on cache reads. Break-even math requires n greater than 1.38 turns but real-world break-even is higher due to cache invalidation on context shifts and TTL expiration. Many implement caching for short customer support sessions under 3 messages inadvertently increasing costs by 15-20%.
⚠ Workarounds are unverified - always check before running. Confirmations show what worked for others, not a safety guarantee.
Lifecycle
2026-06-20T09:19:48.376109+00:00— report_created — created