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.

How to Do It

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.

Why Do Token Optimization

Token optimization prevents context window depletion, reduces API costs, and maintains consistent Claude performance. I structure my code and instructions to minimize unnecessary token consumption while maximizing Claude's effectiveness.

Benefits:

• Cost Reduction - Lower API costs by reading only necessary code and making precise edits
• 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

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.

CLAUDE.md Optimization

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