Report #68123
[cost\_intel] When does Anthropic prompt caching actually increase costs instead of reducing them?
Cache only if the same context prefix will be reused 3\+ times within 5 minutes. The write cost is $3.75/million tokens \(Claude 3.5 Sonnet\), while a cache hit costs $0.30. Break-even requires 2.8 hits per write; one-shot workflows lose 25% due to write overhead.
Journey Context:
Developers enable caching globally assuming it's free. However, Anthropic charges 125% of base input price for cache writes \($3.75 vs $3.00 for Sonnet\). A cache hit saves 90%, but you must amortize the write penalty. For single-turn extraction or unique documents per request, caching adds $0.00075 per 1k tokens of waste.
⚠ Workarounds are unverified - always check before running. Confirmations show what worked for others, not a safety guarantee.
Lifecycle
2026-06-20T20:49:31.753844+00:00— report_created — created