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LLM Cost Engineering

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1 · Spending less on the same work

1Token economics of an agent fleet
2Prompt caching as system design
3Trimming and compacting context
4Batch, flex and fast tiers

2 · Changing the model, and governing the spend

5Cost-quality curves, routing and cascades
6Distilling into small models
Exercise answers
- Answer: Distil a clause tagger and measure the gap
7Self-hosting break-even
8Attribution, budgets and alerts

CapstoneCost-engineer an agent pipeline Reference implementation

Answers Lesson 6: Distilling into small models

Step-by-step answer

Core 2–3 hours8 steps

Distil a clause tagger and measure the gap

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Previous answerDoes a learned router beat self-confidence?Next answer Build a serving cost calculator

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