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Token Efficiency Guide

Use AI Smarter, Not Harder

Master token efficiency across Claude, Gemini, OpenAI, Copilot, OpenRouter, Mistral, Llama, and Grok.Cut API costs by up to 95% without sacrificing output quality.

Explore LLM TipsQuick Reference Table
8LLMs Covered
40+Pro Tips
95%Max Savings
FreeAlways

What Exactly Is a Token?

Tokens are the smallest unit of text an AI model processes — roughly 4 characters or ¾ of a word on average. Every API call charges separately for input tokens (your prompt) and output tokens (the response). The tips below reduce wasted tokens, steer you toward cheaper tiers, and unlock platform discounts — without changing your outputs.

"Hello"
1 token
1 sentence
~15–20
1 paragraph
~80–120
1 page
~400–600
Works for every LLM

Universal Token Tips

Cut the Filler
Save 10–30%

Remove pleasantries, repetition, and hedging. "Please kindly assist me in..." → nothing. Every unnecessary word costs tokens.

System Prompts for Stable Instructions

Put instructions that don't change between turns in the system prompt. Most APIs price system tokens cheaper and cache them better than user messages.

Batch Similar Tasks
Save 40–80%

Send 20 items in one prompt instead of 20 separate calls. "Classify these 20 emails:" beats 20 × "Classify this email:" by eliminating repeated prompt overhead.

Specify Format & Length
Save 20–60%

Tell the model exactly what format and approximate length you want. "Respond in 2 sentences" prevents runaway responses that can cost 10× more than needed.

Cache Repeated Context
Save 50–90%

If you're sending the same document, codebase, or ruleset in every call, use the platform's caching feature. Most major APIs offer 50–90% discounts on cached tokens.

Start Small, Upgrade if Needed
Save 60–95%

Test with the cheapest tier first. Only move up when you observe an actual quality gap. You'll be surprised how often the smaller model is good enough.

Platform-Specific

LLM-Specific Guides

Claude
by Anthropic
Haiku 4.5Sonnet 4.6Opus 4.7
Opus 4.7 Only for Genuinely Hard TasksSave up to 80%

Opus 4.7 is Anthropic's most powerful model — ideal for complex agentic workflows, advanced reasoning, and frontier coding. It's also the most expensive. Sonnet 4.6 handles ~95% of tasks at 80% lower cost. Migrate anything that doesn't need max intelligence.

Use Extended Thinking Budgets WiselySave 40–70%

Opus 4.7 and Sonnet 4.5+ support extended thinking. Thinking tokens cost the same as regular tokens. Start with budget_tokens: 1024 for most tasks; only raise to 8k–16k for genuinely hard multi-step problems.

Structure Prompts with XML TagsSave 10–20%

Wrap context in <context>, instructions in <instructions>, and examples in <example> tags. Claude is trained on this structure — it reduces ambiguity and clarifying back-and-forth turns.

Enable Prompt CachingSave up to 90%

Cache system prompts and large repeated contexts via the Anthropic API. Cached tokens cost 90% less with a 5-minute TTL. Essential for RAG pipelines and multi-turn chatbots.

Use the Message Batches APISave 50%

Non-urgent jobs — report generation, data extraction pipelines — get 50% off via the Batches API with up to 24h turnaround.

Compress Conversation HistorySave 30–60%

After ~10 turns, summarize earlier messages instead of appending verbatim history. Claude handles condensed summaries excellently, halting runaway context growth.

At a Glance

Quick Reference

LLMBudget TierContext WindowPrompt CachingBatch API
Claude
Haiku 4.5200K tokens✓ 90% off✓ 50% off
Gemini
2.5 Flash1M tokens✓ 75% off✓
OpenAI
GPT-4o mini128K tokens✓ 50% off✓ 50% off
Copilot
$10/mo flatVaries––
OpenRouter
auto routerVariesVaries–
Mistral
Small 3.1128K tokens✓ 50% off✗
Llama
Free (local)Varies––
Grok
Grok 3 mini131K tokens✗✗

Prices and limits change often — verify with each provider's official docs before building in production.

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