The four ways to cut token costs
Before the tools, understand the levers. Every cost-control tool pulls one or more of these:
- Caching — reuse cached prompt prefixes to avoid re-billing static content
- Model routing — send simple tasks to cheaper models, complex ones to frontier models
- Prompt reduction — progressive disclosure and context compaction to cut tokens per call
- Budget enforcement — hard limits and circuit breakers to stop runaway spend
Full breakdown of the techniques in our complete guide to cutting AI agent token costs.
The tools, ranked
Exemplar
Token governance + control planeExemplar approaches token cost as a governance problem, not just a gateway optimization. It enforces per-agent token budgets, applies circuit breakers that pause runaway sessions before they become expensive incidents, and routes actions through model selection by complexity. Because it sits at the control-plane layer, budget enforcement is tied to the same policy and audit fabric that governs agent actions — so cost control and governance are one system, not two.
Best for: Teams that want token budgets and circuit breakers tied to agent governance and audit.
Portkey
AI gatewayAn AI gateway with strong caching, semantic caching, model fallback routing, and spend analytics across providers. One of the most complete options for managing LLM API traffic and cost at the gateway layer.
Best for: Teams that want a unified LLM gateway with caching and cost analytics.
Helicone
LLM observability + cachingOpen-source LLM observability with built-in caching, cost tracking, and rate limiting. Easy to drop in as a proxy. Strong on visibility into where tokens go, with caching to reduce repeated spend.
Best for: Teams that want open-source cost visibility and caching with minimal setup.
LiteLLM
Model router / proxyOpen-source proxy that gives a unified interface across 100+ LLM providers, with routing, fallback, and budget controls. Excellent foundation for model routing — send each request to the cheapest model that can handle it.
Best for: Teams that want provider-agnostic routing and self-hosted budget controls.
Anthropic / OpenAI native caching
Provider featuresBoth Anthropic and OpenAI offer prompt caching that bills repeated prefixes at a fraction of standard rates. The cheapest optimization available because it requires no new tool — just structuring prompts so static content comes first. Use this regardless of what else you adopt.
Best for: Every team — this is free and compounds with all other techniques.
How to build your cost-control stack
Start free: turn on native prompt caching (Anthropic/OpenAI) and structure prompts so static content is cached. Zero cost, immediate payback.
Add a gateway or proxy: Portkey, Helicone, or LiteLLM for caching, routing, and visibility across providers.
Add governance: for production agents that take actions, a control plane like Exemplar ties budget enforcement to policy and audit — so a runaway agent is stopped by a circuit breaker, not discovered on the invoice.
Frequently asked questions
What's the single biggest token cost reduction?
For most teams: prompt caching combined with progressive disclosure. Caching cuts the cost of repeated static content (often 40–70% of input tokens), and progressive disclosure cuts how much you load per call. Together they routinely achieve 50–70% reduction. Both are covered in our token cost guide.
Do I need a separate tool, or can I just optimize prompts?
Prompt optimization (caching, compaction, lean tools) is free and should be done first. Tools add value when you need routing across providers, centralized spend visibility, or hard budget enforcement with circuit breakers — the things you can't easily build per-application.
How do circuit breakers prevent runaway costs?
A circuit breaker monitors token consumption per agent session. When a session exceeds its expected budget — often because an agent is looping or stuck — the breaker pauses execution pending human review, instead of letting it consume tokens until someone notices the bill. Essential for unattended agentic loops.
Related: complete guide to cutting token costs, your AI agent is burning money, agent loops, tokenomics, and the harness.