Resources · AI Token Router
Prompt Caching: Why It's the Biggest Lever in Your LLM Bill
Prompt caching is an exact-prefix match: send the same system prompt, tool schema and transcript prefix as an earlier request, in the same order, with nothing changed ahead of it, and that portion bills at a discounted cached rate instead of the standard one. An academic study of 500+ agent sessions found this alone cut API cost 41-80% and improved time-to-first-token 13-31% [1], and one documented case took a support-agent bill from $4,200/mo to $680/mo after a single afternoon of restructuring [2]. On this catalogue, caching is why the agent-workload discount runs 65–68% against a 36–42% rate-card discount for the same models -- the mechanism, not a different set of prices.
Put your own numbers in before you take ours on trust.
Model your own cache hit rateThe mechanism, and where it breaks
Caching only applies to an exact-prefix match: the cached portion of a request has to be byte-identical to a prefix already sent, in the same order, with nothing inserted before it. Reorder the tool schema, edit a line early in a long system prompt, or restructure how context gets assembled, and the cache for that prefix invalidates -- the next request is billed at the standard rate as if nothing had ever been cached [3].
That is a real constraint on how an agent's prompt gets built, not a footnote: appending new turns to the end of a transcript is cache-safe, and editing anything upstream of the append point is not. A system that mutates its own system prompt mid-session -- to inject a dynamically updated tool list, for instance -- is quietly paying the standard rate on every request regardless of what the rate card's cached column says.
What independent research says it's worth
An academic study covering 500+ agent sessions with 10,000-token system prompts found caching cut API cost by 41-80% and improved time-to-first-token by 13-31%, independent of which underlying model was used [1]. A separate documented case describes a support-agent bill falling from $4,200/mo to $680/mo after one afternoon of prompt restructuring -- no model change, just moving the static parts of the prompt ahead of the parts that change on every request [2].
Provider support for some form of caching is close to universal by September 2026. Every text model in this catalogue publishes a cached input rate as its own column in the rate table, not a negotiated or hidden discount.
What that's worth on a single model's bill
Turning that into dollars on one model puts a number on the base-rate gap the caching discount builds on top of. Priced at the standard rate on both sides -- our rate against the model publisher's own -- at the volume this site's own agent workload is stated on (400M input tokens a month with a 60% repeated prefix, and 8M output), the figure below is the floor caching works from; the ranking above already shows how much further the cached rate on the repeated prefix pulls the same model's bill down.
Sources
- [1] "Don't Break the Cache", arXiv 2601.06007 (2026) — arXiv. 500+ agent sessions; caching cut API cost 41-80% and improved time-to-first-token 13-31%.
- [2] Prompt Caching in 2026: Cut Your LLM API Costs by Up to 90% — DevToolLab. The $4,200/mo to $680/mo support-agent case after one afternoon of prompt restructuring.
- [3] LLM Prompt Caching: Cost Savings, Invalidation & Workload Design — IntuitionLabs. The exact-prefix-match mechanism and what invalidates a cached prefix.
Questions this raises
- Does caching happen automatically, or do you have to design for it?
- The cached rate applies automatically whenever a request's prefix exactly matches one already sent, but getting the benefit takes application-level discipline: keep the system prompt and tool schema first and unchanged, and append rather than edit earlier context [3].
- How much of a real bill can caching remove?
- Independent research on repeated-prefix workloads puts the range at 41-80% depending on how much of the prompt actually repeats and how consistently it's structured [1]; a workload with little repeated context has correspondingly less for caching to remove.
AI Token Router is an OpenAI-compatible gateway for open-weight models, priced below each publisher’s own rate on every row.
Related
- What a Fixed Monthly AI Budget Actually Buys in 2026
Three realistic budget tiers, worked by hand against this catalogue's own rate table, at one stated request shape -- how many requests and tokens $10, $50 and $250 a month actually buys on three callable models.
- When a Closed Frontier Model Is Still the Right Call
Closed frontier models measurably lead reasoning-heavy benchmarks as of September 2026. Where that lead and a simpler operational model are worth the higher price -- and why our catalogue is not the answer for that reader.
- Self-Hosting vs a Managed Open-Weight API: When Each Wins
Where the self-host breakeven actually sits, what self-hosting really costs once engineering time is priced in, and the honest cases where self-hosting wins -- this is not a blanket argument for a managed API.