Frequently asked questions
When does prompt caching actually save money?
Caching charges a one-time premium to write the prefix (about 1.25ร base input at Anthropic) and then bills reads at roughly 10% of base. You break even once the discount from enough reuses outweighs that write premium โ often after just one or two hits. Below that, or if the cache expires (5-minute default TTL) before a reuse, the write premium is wasted.
What is the cache TTL and why does it matter?
The time-to-live is how long a cached prefix stays warm โ 5 minutes by default, with a longer 1-hour option at higher write cost. Every reuse resets or extends it. If your requests are spaced further apart than the TTL, each call re-writes the cache and you pay the premium repeatedly instead of the cheap read, killing the savings.