Prompt Caching Slashes LLM Costs by Up to 99%

Prompt caching stores LLM responses for identical requests, cutting costs by 30–99% and reducing latency to sub-millisecond. Exact-match caching catches repeat queries, while provider prefix caching saves on shared prompt prefixes. A customer support bot with 50,000 daily requests could save $6,000 per month with a 40% cache hit rate.