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Token reduction is not cost reduction

Sarel Weinberger & Amir HozezPointFive Research3 min read

Updated September 17, 2026 against version 5 of the paper.

What the experiment measured

PointFive ran four Claude Code configurations across 103 tasks, seven repositories, and three models. The campaign executed 2,908 runs; 2,848 were included in the primary analysis.

ConfigurationDelivered tool-output token changePooled billed-cost change
Unmodified Claude CodeBaselineBaseline
RTK v0.44.1-1.3%-2.7%
RTK-ML, PointFive experimental build-38.4%+6.8%
Headroom v0.27.0Not measured+48.4%

These are paired billed-cost changes against the baseline, not cost per successful task. RTK's pooled estimate was below zero, but its holdout-only confidence interval crossed zero. The paper reports the intervals, exclusions, and success metrics separately.

What this means for an evaluation

Token reduction alone is insufficient evidence of a lower bill. Compare provider charges and task outcomes across representative workloads. Include retries, caching, additional model calls, and any service fees. A useful experiment holds the task and acceptance criteria constant and checks whether the work still succeeds.

Scope and disclosure

The results apply to the tested configurations. They do not establish a universal savings ceiling or describe every compression tool. RTK-ML was an experimental PointFive build; it was not unmodified RTK. This is PointFive-authored research, not an independent evaluation of PointFive's products.

Benchmark and data

The AI Efficiency Benchmark contains the task manifests, retained campaign datasets, analysis scripts, and frozen methodology behind the study. It records provider-reported cost and checks task success with deterministic judges.

Inspect the campaign data, analysis scripts, and methodology. Re-analyzing the retained data is offline; running a new campaign incurs provider charges.

Meet the PointFive Labs team and read Introducing PointFive Labs.

Read the paper

Read the version 5 paper on this page

Source: arXiv, version 5. Open the PDF.

Read the evidence

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