Claude Prompt Caching Cost Model (ANSWERED)
Medium Claude cost question on prompt caching breakpoints and hit rates.
TL;DR — Quick Answer
Prompt caching reuses KV state for large stable prefixes (system prompts, tools, long docs). Put static content first, mark cache breakpoints correctly, and keep volatile user content at the end. Measure cache hit rate and cost before/after.
The Interview Question
Explain Anthropic prompt caching. How would you structure a system prompt and tools payload to maximize cache hits and reduce cost?
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ClaudePrompt CachingCostLatencyAnthropic