Claude Code Billing Explained: Four Token Types and Cache Timing Drive Your Costs

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Claude Code charges developers across four token categories — input, output, cache write, and cache read — each priced differently, with output tokens costing roughly five times more than input tokens. Cache read tokens are the cheapest at one-tenth the base input rate, making prompt caching essential for cost efficiency on large codebases. Two cache durations exist: a 5-minute TTL for API key users and a 1-hour TTL for Pro/Max subscribers, with the longer TTL costing 60% more to write but offering greater savings for sessions with natural pauses. Allowing the cache to expire mid-session triggers a full rewrite that can cost up to 20 times more than a simple cache hit, and actions like switching models, running /compact, or toggling plugins also reset the cache. Developers can reduce unexpected costs by enabling finish notifications and monitoring the live status line to stay within their cache window.

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ProgrammingDEV Community ·

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