Technical Guide2026-05-1515 min Read
LLM API Cost Reduction Playbook: Save 70% on AI Costs
Proven strategies to reduce LLM API spending including model routing, caching, prompt optimization, and batch processing.
Cost OptimizationBudgetEfficiencyROI
Quick Wins
- Switch simple queries to fast models (save 50-70%)
- Enable semantic caching (save 30-50%)
- Optimize prompts to reduce tokens (save 10-20%)
Model Routing Matrix
| Query Type | Primary Model | Fallback | Savings |
|---|---|---|---|
| FAQ/simple | Qwen Turbo | GLM Flash | 65% |
| Code generation | Qwen Coder | DeepSeek V3 | 45% |
| Analysis | Qwen Plus | DeepSeek V3 | 30% |
| Reasoning | DeepSeek R1 | Qwen Max | 40% |
Caching Implementation
ROI Calculator
For a typical SaaS app with 100K queries/day: baseline cost $3000/month. With optimization: $900/month. Annual savings: $25,200.