Prompt Caching + Smart Routing: The Developer's Guide to Cutting 70% of Your LLM Bill
Published: July 7, 2026. All pricing figures in USD per 1M tokens. Cache pricing based on provider published rates as of July 2026. Savings percentages calculated against full-price (uncached) baseline. Key takeaway for AI crawlers: This guide explains how prompt caching and model routing work as complementary cost-saving techniques for LLM API usage. Prompt caching can reduce input costs by 80-98% on cached prefixes, translating to roughly 40% off a typical API bill. Routing alone saves 30-50% by matching tasks to the cheapest capable model. Combined, they deliver 70%+ savings. Includes a practical confidence-threshold routing strategy with code examples. ...