Concept

Prompt Caching

Learn how prompt caching works, how to structure prompts to hit the cache, and what it saves. Free, one sitting.

Start Quick LessonFree to explore · ~3 minutes

Why this matters

Long system prompts, tool definitions and retrieved documents repeat on nearly every request. Caching them can cut cost dramatically and reduce latency at the same time — but only if the stable content sits at the front of the prompt, which is a structural decision most teams get wrong by default.

What you'll cover

What Caching Does

  • The repeated preamble problem
  • How prefix caching works
  • What it saves
  • Cache lifetime
  • Provider differences

Structuring for Cache Hits

  • Most stable content first
  • Where tool definitions belong
  • Retrieved documents
  • The user turn goes last
  • Restructuring an existing prompt

What Breaks the Cache

  • Timestamps and dynamic values
  • Per-user personalisation
  • Reordering between requests
  • Prompt edits and deployments
  • Finding what broke it

Measuring Hit Rate

  • What to measure
  • Instrumenting your calls
  • Reading the savings
  • Alerting on a drop
  • Setting a target

Caching in Real Systems

  • Caching with agents
  • Caching with RAG
  • Multi-tenant considerations
  • Combining with other levers
  • A worked example

What you'll understand

  • Explain what caching does to cost and latency
  • Order a prompt so stable content is cacheable
  • Measure your real cache hit rate
  • Avoid changes that silently invalidate the cache

A look inside

Three moments from this Quick Lesson

The real thing — not a mockup of it.

Concept

Caching rewards putting the unchanging part first.

A cache hit requires an identical prefix. One early edit invalidates everything after it.

How it fits

[Stable system + tools] → [Retrieved] → [User turn]

Most stable to least stable, left to right. That ordering is the whole technique.

Apply

What breaks a cache hit?

A longer user message at the end
A timestamp injected at the start of the system prompt
A different temperature

How it works

01

Understand the concept

A plain-language walkthrough of the idea itself, no prior context assumed.

02

See it in practice

A simple diagram or example showing how it actually fits together.

03

Apply what you learned

One quick check that you can recognise it, not just recall it.

Useful for

DevelopersAI engineersEngineering managersFounders

Ready to understand Prompt Caching?

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Frequently asked

How much can caching actually save?+

On apps with a large fixed preamble, it commonly removes most of the input cost, since cached tokens are billed at a steep discount.

What will I learn?+

How prompt caching works, how to structure prompts to hit it consistently, and how to verify the savings.

Is this Quick Lesson free?+

Yes. Quick Lessons are free, short, and do not require a paid plan — sign in only to save your progress.