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Cut LLM API Cost with Prompt Caching and Context Hygiene

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AI & Agents intermediate 7 min read $0.01 Updated 2026-10-19

How to reduce LLM spend: stable-prefix prompt design for caching, cache hit measurement from usage fields, minimum cacheable sizes and TTLs, avoiding cache-busting content, trimming history, model routing and batch processing.

Repeated long prompts are the biggest avoidable LLM cost. Structure prompts so the stable prefix can be cached, measure cache hits, trim context and route cheap tasks to smaller models.

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