Model Cascade Savings Calculator
Prices cheap-first routing against sending everything to the expensive model, and gives the escalation rate at which the saving disappears.
The cascade stops paying at an escalation rate of 96.8%. You entered 20.0%, so you have 76.8% of headroom.
- Cheap call, including routing overhead
- $0.00036
- Expensive call
- $0.01
- Cascade, blended at 20.0% escalation
- $0.0026
- Baseline — everything to the expensive model
- $0.01
- Difference per request
- $0.0085
- Baseline bill per month
- $2,220
- Cascade bill per month
- $516.00
- Escalations per month
- 40,000
- Break-even escalation rate
- 96.8%
- Escalation headroom
- +76.8%
The break-even escalation rate is the number to remember
A cascade sends everything to a cheap model first and promotes the hard cases. The saving is not the price gap between the two models, because every promoted request pays both bills. Write C for the cheap call, E for the expensive one and p for the share that escalates: the cascade costs C + pE per request against a baseline of E, so it wins only while p is below 1 − C/E. That is the break-even rate, and it is the whole design constraint in one expression.
Two things follow that are not obvious. First, the break-even is set by the RATIO of the two models, not the gap. If the cheap model is a twentieth of the price, you can escalate 95% of traffic and still be ahead; if it is half the price, you cannot escalate more than half. A cascade between two similarly-priced models has almost no room and is rarely worth the complexity. Second, the escalation rate you measure in testing is not the one you will run at. Traffic drifts, prompts get longer, and a router tuned to escalate 15% of last quarter's questions will escalate more of this quarter's. Leave headroom, and alert on the rate rather than only on the bill.
What this leaves out is quality, which is the real reason cascades fail. Requests that should have escalated and did not do not appear as cost; they appear as bad answers. Measure the escalation rate together with whatever quality signal you have, and treat a suspiciously low rate as a routing bug rather than a saving.