How to Optimize Claude Code Token Usage
Token optimization in Claude Code involves creating compact, lean code structures and providing precise instructions about what Claude should read and modify to reduce API costs while maintaining development speed. With Claude 4 Sonnet's 1M token context window via API, many traditional optimization strategies become less critical, but efficiency principles still apply.
Context Window Considerations
Standard Models (200K tokens): Aggressive optimization essential Claude 4 Sonnet API (1M tokens): Optimization helpful but less critical
Optimization Strategies
For All Models:
Create Compact Files - Keep files lean and focused. Break large files into smaller, single-purpose files that Claude can process efficiently without reading unnecessary code.
Direct Reading Instructions - Explicitly tell Claude which files to read and which to ignore. Use your CLAUDE.md to specify file boundaries and forbidden directories to prevent context pollution.
Minimize Edit Operations - Instruct Claude to make as few edits as possible by batching related changes and being specific about exactly what needs modification.
Lean Code Structure - Maintain clean, minimal codebases with clear separation of concerns, reducing the amount of context Claude needs to understand your project.
Explicit Numbered Steps - Provide Claude with clear, numbered steps for complex tasks. This ensures focused execution and prevents Claude from reading unnecessary files or making unintended edits.
For 1M Context (Sonnet 4 API):
Load Entire Codebases - With 5x more context, you can often load entire project repositories without aggressive chunking.
Reduced Chunking Needs - Large-scale operations can maintain context throughout entire workflows without breaking into smaller pieces.
Extended Sessions - Long development conversations remain productive without frequent context resets.
Why Do Token Optimization
Token optimization prevents context window depletion, reduces API costs, and maintains consistent Claude performance. The importance varies significantly based on context window size.
Benefits for Standard Context (200K):
- Critical Cost Reduction - Essential for API cost management with smaller context windows
- Performance Consistency - Avoid degraded responses from context depletion and information overload
- Focused Context - Claude understands exactly what's relevant without processing irrelevant files
- Efficient Operations - Fewer, more targeted edits reduce token consumption per task
- Clean Architecture - Lean, single-purpose files improve both token efficiency and maintainability
Benefits for Extended Context (1M via API):
- Moderate Cost Reduction - Still valuable but less critical with larger context window
- Cleaner Development - Good practices that improve code maintainability
- Professional Habits - Context efficiency remains a valuable skill
- Opus Plan Mode Efficiency - Use hybrid Opus/Sonnet approach to get intelligent planning without expensive execution
I use token optimization by maintaining lean files, clear CLAUDE.md instructions about what to read, and requesting batched edits to keep costs manageable while maintaining Claude's effectiveness. With 1M context via API, I can be less aggressive about optimization while still following good practices.
Use your CLAUDE.md to explicitly specify which files Claude can read and which directories are forbidden. This prevents unnecessary context consumption from irrelevant code.
See Also: Context Window Depletion|CLAUDE.md Supremacy