Cut Claude API Costs Without Sacrificing Performance

Anthropic has identified three key strategies to reduce costs on Claude Platform without compromising performance: maximizing prompt cache hit rates, removing outdated prompt anti-patterns when upgrading models, and calibrating effort to match task complexity. Prompt caching is central to cost savings, allowing Claude to reuse processed input states instead of recomputing them. Effective cache management requires keeping volatile values out of prefixes, avoiding mid-conversation setting changes, and monitoring cache hit rates via Claude Console. Additional guidance covers removing legacy prompt workarounds that no longer suit frontier models.