Techniques··4 min read

Reduce OpenAI API Costs by Optimizing Your Inputs

Practical ways to cut OpenAI API bills by sending fewer, better tokens: cleaning, compressing, and structuring prompts before every call.

Where the money goes

In RAG and document workflows, the prompt carries pages of context on every request. A 10 percent cut in context size is a 10 percent cut in most of your bill, multiplied by every call.

Five easy wins

Each of these takes minutes to apply:

  • Convert HTML to Markdown with the Markdown Converter; tags can double token counts.
  • Remove repeated system boilerplate and old chat turns.
  • Deduplicate retrieved chunks before stuffing them in the prompt.
  • Compress long background with the Context Compressor.
  • Track before and after with the Token Counter.

Measure, don't guess

Pick five typical prompts, count their tokens, apply the cleanup, and count again. That small benchmark tells you the real savings for your workload and helps you decide which optimizations are worth automating.

Try it free in your browser

  • Context Compressor — Reduce token usage with compression strategies tuned for LLMs.
  • Markdown Converter — Paste HTML, DOCX, or webpage text and get tidy Markdown.
  • Token Counter — Live token, character, and context-window meter for any prompt. Uses official tiktoken encoders.

Tools mentioned

Frequently asked

Are input or output tokens more expensive?

Output tokens cost more per token, but most applications send far more input than they receive, so input usually dominates the total bill.

Does compressing text hurt answer quality?

Removing noise usually improves quality. Aggressive summarization can drop details, so preserve key terms when compressing.

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