💡 Tips on how to optimize token useage when using claude code

Claude Code is a powerful AI coding assistant, but costs can add up quickly if not used efficiently. Here are 14 proven strategies to optimize your usage and save money while maintaining productivity.

💰 Cost Optimization Strategies

1. Model Selection is Critical

Use Claude 3 Haiku by default - costs only 1/5 of Sonnet. It’s extremely fast and cheap for:

• Debugging tasks
• File reading operations
• Simple code searches
• Routine refactoring

For more details, please refer to this website.

2. Use Search Instead of Read

“Search for X in file” costs 100x less than “read file”. The Read tool loads entire file contents into context, while Grep only extracts matching lines.

Example:

❌ "Read config.yaml and find database settings"
✅ "Search for 'database' in config.yaml"

3. Read Files in Chunks

Specify line numbers when reading large files: "read lines 1-100 of server.js"

This saves 100x cost compared to reading entire files unnecessarily.

4. Parallel Operations

Execute multiple operations simultaneously in a single message. Reading 3 files in parallel = cost of 1 file, but 3x faster.

Example:

In a single message:
1. Search for handleError in src/utils.js
2. Search for validateInput in src/validators.js
3. Search for logMessage in src/logger.js

5. Leverage Explore Agent

Use the Task tool with subagent_type=Explore for codebase exploration. It’s 5x cheaper than manual searching and automatically finds relevant code patterns.

Example:

Use Task agent to explore how error handling works in this codebase

6. Plan Before Modifying

Always create a plan using TodoWrite before major refactoring. This helps:

• Estimate scope and complexity
• Avoid costly rework
• Track progress systematically

Example:

Create a detailed plan for refactoring the authentication module before making any changes

7. Set Budget Alerts

Configure budget warnings at 70% and 90% thresholds to prevent overspending. This gives you time to adjust usage patterns before hitting limits.

8. Limit Search Results

Request only the top 50 matches when searching. This keeps results precise and economical.

Example:

Search for 'TODO' in src/, limit to 50 results

9. Ask Specific Questions Once

Reduce multi-turn interactions by asking precise, comprehensive questions. This can cut costs by 2/3.

Bad:

1. "What files are in src/?"
2. "Read utils.js"
3. "What does formatDate do?"
4. "Show me examples of its usage"

Good:

"Search for formatDate function in src/, show definition and top 3 usage examples"

10. Use Path Shortcuts

Provide clear file paths and line numbers when you know them. This makes operations more efficient and reduces exploration overhead.

11. Create Task Lists Upfront

Plan execution order before starting work. This boosts efficiency by 40% and prevents redundant operations.

12. Smart Reading

Load only necessary code lines. If you need to check a function signature, don’t read the entire file.

Example:

Read lines 45-60 of api.js (where handleRequest is defined)

13. Avoid Repeat Questions

Reuse conversation context. Information already discussed is free to reference again. Build on previous responses instead of asking from scratch.

14. Filter Before Processing

Use glob patterns and type filters to narrow down search scope. The system filters irrelevant data first, potentially saving up to 95% cost.

Example:

Search for 'useState' in src/**/*.tsx (only TypeScript React files)

🔧 Automation Setup

Configure Project-Level Guidelines

Create a CLAUDE.md file in your project root:

# Claude Code Usage Guidelines

## Cost Optimization Rules

1. **Model Selection**: Use Haiku for file operations and searches
2. **File Operations**: Always use Grep/search instead of Read when possible
3. **Planning**: Create TodoWrite plan before major refactoring
4. **Context Reuse**: Reference previous information in conversation
5. **Specific Requests**: Ask precise, single-purpose questions

Create Custom Slash Commands

In .claude/commands/ directory:

search.md:

Search for {{pattern}} in {{path}}. Limit results to 50 matches.

plan.md:

Create a detailed plan using TodoWrite before making code changes.
Break down into specific, measurable steps.

📊 Cost-Saving Examples

Before Optimization:

User: "Help me understand this codebase"
Claude: [Reads 50 files, costs $5]

After Optimization:

User: "Use Explore agent to find how user authentication works"
Claude: [Uses targeted search, costs $0.50]

Result: 90% cost reduction with same outcome

🎯 Key Takeaways

1. Think before you prompt - Plan your questions to minimize iterations
2. Search, don’t read - Grep is your best friend
3. Parallel everything - Batch operations in single messages
4. Use the right tool - Haiku for routine tasks, Sonnet for complexity
5. Document your patterns - Create CLAUDE.md to enforce best practices

By following these strategies, you can reduce Claude Code costs by 60-90% while maintaining or even improving productivity.