Prompt Caching Explained: Why Your AI Bill Is 4x Too High

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Look at this: seventeen cents, then three and a half cents, same task, same AI, same conversation. Then one thing changed and the cost jumped to twenty four cents, higher than the very first message. That is prompt caching, a setting most people using AI tools like Claude Code don't even know exists. In this video I break down what prompt caching actually is with a simple grocery store analogy, the real pricing math behind it, and a real live test showing the cache working, then breaking.

Resource guide with the real numbers, the exact commands to test this yourself, and the three habits that protect your cache: https://drive.google.com/file/d/1j9k6MqL0PtATphn-6bYy2NLCC9nmH1WU/view?usp=sharing

Chapters
00:00 The bill jumped
00:44 What prompt caching actually is
01:28 The grocery cashier analogy
02:43 What breaks the cache
04:05 The real numbers (Opus pricing)
05:51 The receipts: a real live test
06:50 Clearing vs compacting
07:40 Key reminders and how to check your own number

Source for all pricing figures: Anthropic's official Claude API pricing (input, output, and cache write/read multipliers).

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Видео Prompt Caching Explained: Why Your AI Bill Is 4x Too High канала Sai Santosh Kumar (SSK)