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Prompt Caching on Anthropic: Cost and Latency Optimization (ANSWERED)

Project BasedClaudeMedium14 min read

**Mechanism** Server caches designated prompt prefixes; subsequent requests reuse if prefix identical.

TL;DR — Quick Answer

Mark stable prefix blocks (system, tools, docs) with cache_control; cached prefixes reduce cost and latency on repeated calls — put volatile user content last; monitor cache hit metrics; rotate when tools change.

The Interview Question

How does Anthropic prompt caching work and when should you structure prompts to maximize cache hits?

Deep Explanation

Mechanism Server caches designated prompt prefixes; subsequent requests reuse if prefix identical.

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