Evan Cates identifies token waste patterns in Claude Code API bills
Evan Cates argues that high Claude Code API costs stem from a few measurable patterns — re-reading files, oversized tool output, and cache misses — and points to transcripts in `~/.claude/projects/` as the data source for diagnosing them.
Score breakdown
The post identifies that Claude Code's locally stored transcripts already contain the data needed to diagnose and reduce API token costs, making waste measurable without additional instrumentation.
- 01High Claude Code API bills are attributed to re-reading the same files, oversized tool output, and cache misses — not too many turns.
- 02Claude Code writes transcripts to `~/.claude/projects/`, which can be used to measure token waste.
- 03A free open-source diagnostic tool is available at `github.com/Ludoonus/claude-token-report`.
Evan Cates makes the case that high Claude Code API spending is driven not by conversation volume but by a handful of repeatable, measurable inefficiencies. The three patterns he identifies are: re-reading the same files across turns, oversized tool output, and cache misses. Crucially, he notes that the evidence needed to diagnose these issues already exists in the transcript files Claude Code writes locally to `~/.claude/projects/`.
To act on this, Cates points to a free tool hosted at `github.com/Ludoonus/claude-token-report` for analyzing those transcripts.
To act on this, Cates points to a free tool hosted at `github.com/Ludoonus/claude-token-report` for analyzing those transcripts. He also promotes *The Claude Code Operator's Handbook*, a 18-chapter paid resource ($29) covering safe and efficient operation of AI coding agents, with a free sample available.
Key facts
- 01High Claude Code API bills are attributed to re-reading the same files, oversized tool output, and cache misses — not too many turns.
- 02Claude Code writes transcripts to `~/.claude/projects/`, which can be used to measure token waste.
- 03A free open-source diagnostic tool is available at `github.com/Ludoonus/claude-token-report`.
- 04The post also promotes *The Claude Code Operator's Handbook*, a 18-chapter guide priced at $29 with a free sample available.
Topics
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