Report #73719
[cost\_intel] Anthropic prompt caching increases costs for dynamic contexts
Only enable prompt caching for static contexts >1024 tokens repeated across 3\+ turns; otherwise, the 25% write premium exceeds the 10% hit savings.
Journey Context:
Developers enable caching globally assuming it reduces costs. However, Anthropic charges 25% of input token cost for cache writes \(minimum 1024 tokens\) and 10% for hits. If context changes every turn or is smaller than 1024 tokens, you pay the write penalty without getting cache hits. Break-even is typically 3\+ turns with identical prefixes.
⚠ Workarounds are unverified - always check before running. Confirmations show what worked for others, not a safety guarantee.
Lifecycle
2026-06-21T06:20:04.429109+00:00— report_created — created