How to Reduce LLM API Costs by 30-50% with Data Format Optimization

The Hidden Cost of JSON in LLM Prompts

If you're sending JSON data to LLM APIs, you're paying for every bracket, quote, and colon. A typical JSON payload wastes 30-50% of its tokens on syntax rather than actual data. At scale, this adds up quickly.

Consider a typical API response with user data:

{
  "users": [
    {"name": "Alice", "age": 30, "email": "alice@example.com"},
    {"name": "Bob", "age": 25, "email": "bob@example.com"}
  ]
}
// ~45 tokens

The same data in TOON format:

{users=[{name="Alice",age=#30,email="alice@example.com"},{name="Bob",age=#25,email="bob@example.com"}]}
// ~28 tokens — 38% reduction

5 Strategies to Cut Token Costs

1. Use Compact Data Formats

TOON format eliminates redundant JSON syntax while preserving data structure. Convert your data with ConvertTOON before including it in prompts.

2. Strip Unnecessary Fields

Before sending data to an LLM, remove fields that aren't relevant to the task. A user object with 20 fields can often be reduced to 3-4 essential ones.

3. Batch Similar Requests

Instead of making 10 separate API calls with similar system prompts, batch your data into a single request. The system prompt overhead is paid once instead of 10 times.

4. Use Shorter Field Names in Context

When you control the schema, use abbreviated keys: "n" instead of "name", "e" instead of "email". Include a legend once, then use short keys throughout.

5. Pre-process with Format Conversion

Convert JSON to YAML or TOON before embedding in prompts. YAML is often more token-efficient than JSON for nested data due to fewer delimiters.

Real-World Cost Comparison

For a company processing 1 million API calls per month with an average payload of 500 tokens:

Getting Started

Try converting your data now with ConvertTOON. Paste your JSON, see the token reduction instantly, and calculate your potential savings with our Token Cost Calculator.