Comparison guide

Compression vs caching

Prompt compression and caching are complementary cost optimization strategies. Understanding the difference helps you choose the right approach for each use case.

By Arjun Shah - Creator of SuperCompress - Updated 2026-07-03

When to use caching

Caching stores and reuses LLM responses for identical queries. It is ideal when: the exact same query repeats often, the response is deterministic, and response freshness is not critical. Caching saves 100% of token costs for cached queries.

When to use compression

Compression reduces the input size of every query, including unique ones. It is ideal when: every query is different, context is long but noisy, and latency reduction is a goal. Compression saves 60-85% on every query.

Using both together

The optimal stack: check cache first (for identical queries), compress before sending (for unique queries), and cache the compressed result (for near-identical queries). This maximizes cost savings without sacrificing quality.

Frequently asked questions

Which saves more money?

Caching saves more per cached query (100%), but compression saves on every query (60-85%). Combined, they maximize total savings.

Do they work with streaming?

Yes. Cache the streamed response, compress before streaming. Both work seamlessly with streaming.

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