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Cost and Latency Engineering for LLM Apps

Token accounting, caching, routing, batching and the arithmetic interviewers actually check

30 min read 9 views

The reusable toolkit behind every 'make it cheaper and faster' interview question: why input tokens dominate cost and output tokens dominate latency, how prompt-prefix caching and semantic caching work and where each breaks, model routing and cascades, streaming and parallel tool calls as latency levers, the TTFT-plus-decode model of p95 latency, and the cost-per-1,000-conversations math that ties every lever to a number leadership will ask for.

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Practice questions (5)

Prompt-Prefix Caching in an Agent Loop

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Tuning a Semantic Cache Without Shipping Wrong Answers

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Model Routing: Computing the Blended Savings

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Fixing p95 Latency by Capping Output Length

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Cost per 1,000 Conversations, Lever by Lever

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Quizzes (1)

Cost and Latency Engineering for LLM Apps Quiz

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