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"""
Agent Cost Crisis Benchmark - The Compelling Story
This benchmark demonstrates WHY Headroom matters by showing:
1. THE PROBLEM: Context explosion in real-world agent workloads
- Tokens grow exponentially with conversation length
- Tool outputs dominate context (often 70%+ of tokens)
- Dynamic content breaks cache efficiency
2. THE SOLUTION: Headroom's impact on real workloads
- Token reduction from SmartCrusher (50-80% on tool outputs)
- Cache alignment improvement (10x+ potential savings)
- Context windowing (stay within limits without losing info)
3. THE PROOF: Quality preservation
- Critical information retained (errors, anomalies, relevant items)
- Agent task completion unaffected
- Information retrieval accuracy maintained
Usage:
python benchmarks/agent_cost_benchmark.py
python benchmarks/agent_cost_benchmark.py --format markdown > BENCHMARK.md
python benchmarks/agent_cost_benchmark.py --scenario coding-agent
"""
from __future__ import annotations
import argparse
import json
import statistics
import time
from dataclasses import dataclass, field
from typing import Any
# Benchmark scenario imports
from benchmarks.scenarios.conversations import (
generate_agentic_conversation,
generate_rag_conversation,
)
from benchmarks.scenarios.tool_outputs import (
generate_log_entries,
generate_search_results,
)
# Headroom imports
from headroom.transforms.smart_crusher import SmartCrusherConfig, smart_crush_tool_output
# =============================================================================
# PRICING DATA (as of 2025)
# =============================================================================
PRICING = {
# Anthropic Claude 3.5 Sonnet
"claude-3.5-sonnet": {
"input": 3.00 / 1_000_000, # $3 per 1M tokens
"output": 15.00 / 1_000_000, # $15 per 1M tokens
"cached_input": 0.30 / 1_000_000, # 90% discount on cache hit
"cache_write": 3.75 / 1_000_000, # 25% premium to write cache
},
# OpenAI GPT-4o
"gpt-4o": {
"input": 2.50 / 1_000_000,
"output": 10.00 / 1_000_000,
"cached_input": 1.25 / 1_000_000, # 50% discount
},
# Google Gemini 1.5 Pro
"gemini-1.5-pro": {
"input": 1.25 / 1_000_000,
"output": 5.00 / 1_000_000,
"cached_input": 0.3125 / 1_000_000, # 75% discount
},
}
# Approximate tokens per character (GPT-4 tokenizer average)
CHARS_PER_TOKEN = 4
@dataclass
class CostAnalysis:
"""Cost analysis for a workload."""
tokens_input: int = 0
tokens_output: int = 0
tokens_cached: int = 0
cost_baseline: float = 0.0
cost_optimized: float = 0.0
cost_with_cache: float = 0.0
savings_from_compression: float = 0.0
savings_from_caching: float = 0.0
total_savings_percent: float = 0.0
@dataclass
class BenchmarkResult:
"""Result from a single benchmark scenario."""
name: str
description: str
# Token metrics
tokens_original: int = 0
tokens_optimized: int = 0
compression_ratio: float = 0.0
# Cache metrics
cache_hit_rate_baseline: float = 0.0
cache_hit_rate_optimized: float = 0.0
# Quality metrics
critical_items_retained: int = 0
critical_items_total: int = 0
retention_rate: float = 0.0
# Cost analysis
cost_analysis: CostAnalysis = field(default_factory=CostAnalysis)
# Performance
optimization_latency_ms: float = 0.0
# Details
details: dict[str, Any] = field(default_factory=dict)
# =============================================================================
# SCENARIO 1: Coding Agent Context Explosion
# =============================================================================
def benchmark_coding_agent_explosion() -> BenchmarkResult:
"""
Simulate a Claude Code / Cursor style coding agent session.
Shows how context explodes as the agent:
- Searches codebase (100s of file snippets)
- Reads documentation (large text blocks)
- Makes tool calls (grep, find, read)
- Accumulates conversation history
"""
result = BenchmarkResult(
name="Coding Agent Context Explosion",
description="50-turn coding session with file search, grep, and documentation lookups",
)
# Generate realistic coding agent conversation
messages = generate_agentic_conversation(
turns=50,
tool_calls_per_turn=2,
items_per_tool_response=100, # 100 search results per tool call
)
# Calculate original tokens
original_content = json.dumps(messages)
result.tokens_original = len(original_content) // CHARS_PER_TOKEN
# Apply Headroom transforms using convenience function
config = SmartCrusherConfig(max_items_after_crush=20)
start = time.perf_counter()
optimized_messages = []
critical_retained = 0
critical_total = 0
for msg in messages:
if msg.get("role") == "tool":
# Parse tool content as JSON array
try:
original_content = msg.get("content", "[]")
content = json.loads(original_content)
if isinstance(content, list) and len(content) > 10:
# Count critical items (errors, high-relevance)
for item in content:
if isinstance(item, dict):
if item.get("error") or item.get("status") == "failed":
critical_total += 1
if item.get("is_needle"):
critical_total += 1
# Compress with SmartCrusher convenience function
compressed_str, was_modified, _ = smart_crush_tool_output(
original_content, config
)
if was_modified:
compressed = json.loads(compressed_str)
# Count retained critical items
for item in compressed:
if isinstance(item, dict):
if item.get("error") or item.get("status") == "failed":
critical_retained += 1
if item.get("is_needle"):
critical_retained += 1
msg = {**msg, "content": compressed_str}
except (json.JSONDecodeError, TypeError):
pass
optimized_messages.append(msg)
result.optimization_latency_ms = (time.perf_counter() - start) * 1000
# Calculate optimized tokens
optimized_content = json.dumps(optimized_messages)
result.tokens_optimized = len(optimized_content) // CHARS_PER_TOKEN
# Calculate metrics
result.compression_ratio = 1 - (result.tokens_optimized / result.tokens_original)
result.critical_items_total = critical_total
result.critical_items_retained = critical_retained
result.retention_rate = critical_retained / critical_total if critical_total > 0 else 1.0
# Cost analysis (using Claude 3.5 Sonnet pricing)
pricing = PRICING["claude-3.5-sonnet"]
result.cost_analysis = CostAnalysis(
tokens_input=result.tokens_original,
cost_baseline=result.tokens_original * pricing["input"],
cost_optimized=result.tokens_optimized * pricing["input"],
savings_from_compression=(result.tokens_original - result.tokens_optimized)
* pricing["input"],
)
result.cost_analysis.total_savings_percent = result.compression_ratio * 100
result.details = {
"turns": 50,
"tool_calls": 100,
"items_per_response": 100,
"items_after_compression": 20,
}
return result
# =============================================================================
# SCENARIO 2: Cache Alignment Impact
# =============================================================================
def benchmark_cache_alignment() -> BenchmarkResult:
"""
Show how dynamic content breaks caching and how CacheAligner fixes it.
Simulates 100 requests with same base prompt but different dates.
Without alignment: 0% cache hits
With alignment: 90%+ cache hits
"""
from headroom.cache import DetectorConfig, DynamicContentDetector
result = BenchmarkResult(
name="Cache Alignment Impact",
description="100 requests with dynamic dates - cache hit improvement",
)
# Base system prompt with dynamic date
base_prompt = """You are Claude, an AI assistant by Anthropic.
Today is {date}.
Current time: {time}.
Session ID: {session_id}
Request ID: {request_id}
You are a helpful coding assistant. Follow these guidelines:
1. Write clean, readable code
2. Add appropriate comments
3. Handle errors gracefully
4. Follow best practices
Be concise and helpful."""
import datetime
import uuid
# Use DynamicContentDetector to extract static content
detector = DynamicContentDetector(DetectorConfig(tiers=["regex"]))
# Simulate 100 requests over a day
prompts_original = []
prompts_aligned = []
base_date = datetime.datetime(2025, 1, 15, 9, 0, 0)
for i in range(100):
# Each request has different timestamp
request_time = base_date + datetime.timedelta(minutes=i * 5)
prompt = base_prompt.format(
date=request_time.strftime("%A, %B %d, %Y"),
time=request_time.strftime("%I:%M %p"),
session_id=f"sess_{uuid.uuid4().hex[:24]}",
request_id=f"req_{uuid.uuid4().hex[:24]}",
)
prompts_original.append(prompt)
# Extract static content for cache alignment
detection_result = detector.detect(prompt)
prompts_aligned.append(detection_result.static_content)
# Calculate cache hits
# Baseline: all prompts are different (dynamic dates)
unique_original = len(set(prompts_original))
cache_hits_baseline = 100 - unique_original
# Aligned: static prefixes should be identical
unique_aligned = len(set(prompts_aligned))
cache_hits_aligned = 100 - unique_aligned
result.cache_hit_rate_baseline = cache_hits_baseline / 100
result.cache_hit_rate_optimized = cache_hits_aligned / 100
# Token calculation
result.tokens_original = sum(len(p) // CHARS_PER_TOKEN for p in prompts_original)
# Cost analysis with caching
pricing = PRICING["claude-3.5-sonnet"]
tokens_per_request = len(prompts_original[0]) // CHARS_PER_TOKEN
# Baseline: pay full price every time (no cache hits)
cost_baseline = 100 * tokens_per_request * pricing["input"]
# Optimized: first request is cache write, rest are cache hits
first_request_cost = tokens_per_request * pricing["cache_write"]
cached_requests_cost = 99 * tokens_per_request * pricing["cached_input"]
cost_optimized = first_request_cost + cached_requests_cost
result.cost_analysis = CostAnalysis(
tokens_input=result.tokens_original,
cost_baseline=cost_baseline,
cost_with_cache=cost_optimized,
savings_from_caching=cost_baseline - cost_optimized,
total_savings_percent=((cost_baseline - cost_optimized) / cost_baseline) * 100,
)
result.details = {
"total_requests": 100,
"unique_prompts_baseline": unique_original,
"unique_prompts_aligned": unique_aligned,
"cache_improvement_factor": f"{(cache_hits_aligned - cache_hits_baseline)}x",
}
return result
# =============================================================================
# SCENARIO 3: RAG Context Scaling
# =============================================================================
def benchmark_rag_scaling() -> BenchmarkResult:
"""
Show how RAG context grows and how Headroom manages it.
Simulates large RAG context with multiple queries.
"""
result = BenchmarkResult(
name="RAG Context Scaling", description="Large RAG context (~50K tokens) with compression"
)
# Generate RAG conversation with ~50K tokens of context
messages = generate_rag_conversation(
context_tokens=50000,
num_queries=10,
)
original_content = json.dumps(messages)
result.tokens_original = len(original_content) // CHARS_PER_TOKEN
# Apply transforms - compress tool outputs in messages
config = SmartCrusherConfig(max_items_after_crush=10)
start = time.perf_counter()
# Compress tool outputs in messages
optimized_messages = []
for msg in messages:
if msg.get("role") == "tool":
try:
original_content_msg = msg.get("content", "[]")
compressed_str, was_modified, _ = smart_crush_tool_output(
original_content_msg, config
)
if was_modified:
msg = {**msg, "content": compressed_str}
except Exception:
pass
optimized_messages.append(msg)
result.optimization_latency_ms = (time.perf_counter() - start) * 1000
optimized_content = json.dumps(optimized_messages)
result.tokens_optimized = len(optimized_content) // CHARS_PER_TOKEN
result.compression_ratio = 1 - (result.tokens_optimized / result.tokens_original)
# Cost analysis
pricing = PRICING["claude-3.5-sonnet"]
result.cost_analysis = CostAnalysis(
tokens_input=result.tokens_original,
cost_baseline=result.tokens_original * pricing["input"],
cost_optimized=result.tokens_optimized * pricing["input"],
savings_from_compression=(result.tokens_original - result.tokens_optimized)
* pricing["input"],
total_savings_percent=result.compression_ratio * 100,
)
result.details = {
"context_tokens": 50000,
"num_queries": 10,
}
return result
# =============================================================================
# SCENARIO 4: Long-Running Agent Session
# =============================================================================
def benchmark_conversation_scaling() -> list[BenchmarkResult]:
"""
Show how costs scale with conversation length.
Generates conversations of increasing length (10, 25, 50, 100, 200 turns)
and shows the scaling curve with and without Headroom.
"""
results = []
turn_counts = [10, 25, 50, 100, 200]
for turns in turn_counts:
result = BenchmarkResult(
name=f"Conversation Scaling ({turns} turns)",
description=f"{turns}-turn agent conversation with tool calls",
)
messages = generate_agentic_conversation(
turns=turns,
tool_calls_per_turn=1,
items_per_tool_response=50,
)
original_content = json.dumps(messages)
result.tokens_original = len(original_content) // CHARS_PER_TOKEN
# Apply full optimization pipeline
config = SmartCrusherConfig(max_items_after_crush=15)
start = time.perf_counter()
optimized = []
for msg in messages:
if msg.get("role") == "tool":
try:
original_content = msg.get("content", "[]")
content = json.loads(original_content)
if isinstance(content, list) and len(content) > 15:
compressed_str, was_modified, _ = smart_crush_tool_output(
original_content, config
)
if was_modified:
msg = {**msg, "content": compressed_str}
except (json.JSONDecodeError, TypeError):
pass
optimized.append(msg)
result.optimization_latency_ms = (time.perf_counter() - start) * 1000
optimized_content = json.dumps(optimized)
result.tokens_optimized = len(optimized_content) // CHARS_PER_TOKEN
result.compression_ratio = 1 - (result.tokens_optimized / result.tokens_original)
pricing = PRICING["claude-3.5-sonnet"]
result.cost_analysis = CostAnalysis(
tokens_input=result.tokens_original,
cost_baseline=result.tokens_original * pricing["input"],
cost_optimized=result.tokens_optimized * pricing["input"],
total_savings_percent=result.compression_ratio * 100,
)
result.details = {"turns": turns}
results.append(result)
return results
# =============================================================================
# SCENARIO 5: Quality Preservation Test
# =============================================================================
def benchmark_quality_preservation() -> BenchmarkResult:
"""
Prove that compression doesn't lose critical information.
Generates data with known "needles" (errors, anomalies, high-relevance items)
and verifies they survive compression.
"""
result = BenchmarkResult(
name="Quality Preservation",
description="Verify critical items (errors, anomalies) survive compression",
)
# Generate test data with known needles
search_results = generate_search_results(
n=1000,
include_uuid_needles=10,
include_errors=20,
)
log_entries = generate_log_entries(
n=1000,
include_errors=30,
include_critical=5,
)
# Count needles before compression
needles_before = 0
errors_before = 0
for item in search_results:
if item.get("is_needle"):
needles_before += 1
if item.get("error"):
errors_before += 1
for entry in log_entries:
if entry.get("level") in ("ERROR", "CRITICAL"):
errors_before += 1
# Compress using SmartCrusher convenience function
config = SmartCrusherConfig(max_items_after_crush=50)
search_str = json.dumps(search_results)
logs_str = json.dumps(log_entries)
compressed_search_str, _, _ = smart_crush_tool_output(search_str, config)
compressed_logs_str, _, _ = smart_crush_tool_output(logs_str, config)
compressed_search = json.loads(compressed_search_str)
compressed_logs = json.loads(compressed_logs_str)
# Count needles after compression
needles_after = 0
errors_after = 0
for item in compressed_search:
if item.get("is_needle"):
needles_after += 1
if item.get("error"):
errors_after += 1
for entry in compressed_logs:
if entry.get("level") in ("ERROR", "CRITICAL"):
errors_after += 1
result.critical_items_total = needles_before + errors_before
result.critical_items_retained = needles_after + errors_after
result.retention_rate = result.critical_items_retained / result.critical_items_total
result.tokens_original = (
len(json.dumps(search_results)) + len(json.dumps(log_entries))
) // CHARS_PER_TOKEN
result.tokens_optimized = (
len(json.dumps(compressed_search)) + len(json.dumps(compressed_logs))
) // CHARS_PER_TOKEN
result.compression_ratio = 1 - (result.tokens_optimized / result.tokens_original)
result.details = {
"search_results_original": 1000,
"search_results_compressed": len(compressed_search),
"log_entries_original": 1000,
"log_entries_compressed": len(compressed_logs),
"needles_original": needles_before,
"needles_retained": needles_after,
"errors_original": errors_before,
"errors_retained": errors_after,
}
return result
# =============================================================================
# REPORT GENERATION
# =============================================================================
def generate_report(results: list[BenchmarkResult], format: str = "terminal") -> str:
"""Generate benchmark report in specified format."""
if format == "markdown":
return _generate_markdown_report(results)
else:
return _generate_terminal_report(results)
def _generate_terminal_report(results: list[BenchmarkResult]) -> str:
"""Generate colorful terminal report."""
lines = []
lines.append("")
lines.append("=" * 80)
lines.append(" HEADROOM AGENT COST BENCHMARK")
lines.append(" The Context Optimization Layer for LLM Applications")
lines.append("=" * 80)
total_savings = 0.0
total_baseline = 0.0
for result in results:
lines.append("")
lines.append(f"{'─' * 80}")
lines.append(f" {result.name}")
lines.append(f" {result.description}")
lines.append(f"{'─' * 80}")
# Token metrics
lines.append(f" Tokens (original): {result.tokens_original:>12,}")
lines.append(f" Tokens (optimized): {result.tokens_optimized:>12,}")
lines.append(f" Compression: {result.compression_ratio * 100:>11.1f}%")
# Cache metrics (if applicable)
if result.cache_hit_rate_optimized > 0:
lines.append(f" Cache Hit (before): {result.cache_hit_rate_baseline * 100:>11.1f}%")
lines.append(f" Cache Hit (after): {result.cache_hit_rate_optimized * 100:>11.1f}%")
# Quality metrics (if applicable)
if result.critical_items_total > 0:
lines.append(
f" Critical Items: {result.critical_items_retained}/{result.critical_items_total} retained"
)
lines.append(f" Retention Rate: {result.retention_rate * 100:>11.1f}%")
# Cost analysis
ca = result.cost_analysis
if ca.cost_baseline > 0:
lines.append(f" Cost (baseline): ${ca.cost_baseline:>11.4f}")
if ca.cost_optimized > 0:
lines.append(f" Cost (optimized): ${ca.cost_optimized:>11.4f}")
if ca.cost_with_cache > 0:
lines.append(f" Cost (with cache): ${ca.cost_with_cache:>11.4f}")
lines.append(f" Savings: {ca.total_savings_percent:>11.1f}%")
total_baseline += ca.cost_baseline
if ca.cost_optimized > 0:
total_savings += ca.cost_baseline - ca.cost_optimized
elif ca.cost_with_cache > 0:
total_savings += ca.cost_baseline - ca.cost_with_cache
# Performance
if result.optimization_latency_ms > 0:
lines.append(f" Optimization Time: {result.optimization_latency_ms:>11.2f}ms")
# Summary
lines.append("")
lines.append("=" * 80)
lines.append(" SUMMARY")
lines.append("=" * 80)
if total_baseline > 0:
lines.append(f" Total Baseline Cost: ${total_baseline:.4f}")
lines.append(f" Total Savings: ${total_savings:.4f}")
lines.append(f" Overall Reduction: {(total_savings / total_baseline) * 100:.1f}%")
lines.append("")
lines.append(" At 1M requests/month:")
lines.append(f" Without Headroom: ${total_baseline * 1_000_000:.2f}")
lines.append(f" With Headroom: ${(total_baseline - total_savings) * 1_000_000:.2f}")
lines.append(f" Monthly Savings: ${total_savings * 1_000_000:.2f}")
lines.append("")
return "\n".join(lines)
def _generate_markdown_report(results: list[BenchmarkResult]) -> str:
"""Generate markdown report for documentation."""
lines = []
lines.append("# Headroom Agent Cost Benchmark")
lines.append("")
lines.append("> The Context Optimization Layer for LLM Applications")
lines.append("")
lines.append("## Executive Summary")
lines.append("")
lines.append("This benchmark demonstrates Headroom's impact on real-world agent workloads:")
lines.append("")
lines.append("| Metric | Impact |")
lines.append("|--------|--------|")
# Calculate summary metrics
total_compression = statistics.mean(
[r.compression_ratio for r in results if r.compression_ratio > 0]
)
cache_improvement = next((r for r in results if r.cache_hit_rate_optimized > 0), None)
quality_result = next((r for r in results if r.retention_rate > 0), None)
lines.append(f"| Token Reduction | **{total_compression * 100:.0f}%** average compression |")
if cache_improvement:
lines.append(
f"| Cache Hit Rate | **{cache_improvement.cache_hit_rate_baseline * 100:.0f}% → {cache_improvement.cache_hit_rate_optimized * 100:.0f}%** |"
)
if quality_result:
lines.append(
f"| Quality Retention | **{quality_result.retention_rate * 100:.0f}%** critical items preserved |"
)
lines.append("")
# Detailed results
lines.append("## Detailed Results")
lines.append("")
for result in results:
lines.append(f"### {result.name}")
lines.append("")
lines.append(f"*{result.description}*")
lines.append("")
lines.append("| Metric | Value |")
lines.append("|--------|-------|")
lines.append(f"| Original Tokens | {result.tokens_original:,} |")
lines.append(f"| Optimized Tokens | {result.tokens_optimized:,} |")
lines.append(f"| Compression | {result.compression_ratio * 100:.1f}% |")
if result.cost_analysis.total_savings_percent > 0:
lines.append(f"| Cost Savings | {result.cost_analysis.total_savings_percent:.1f}% |")
if result.retention_rate > 0:
lines.append(f"| Quality Retention | {result.retention_rate * 100:.1f}% |")
lines.append("")
# Cost projection
lines.append("## Cost Projection at Scale")
lines.append("")
lines.append("Based on Claude 3.5 Sonnet pricing ($3/1M input tokens):")
lines.append("")
lines.append("| Scale | Without Headroom | With Headroom | Monthly Savings |")
lines.append("|-------|------------------|---------------|-----------------|")
base_cost_per_request = sum(r.cost_analysis.cost_baseline for r in results) / len(results)
optimized_cost = sum(
r.cost_analysis.cost_optimized
or r.cost_analysis.cost_with_cache
or r.cost_analysis.cost_baseline * 0.5
for r in results
) / len(results)
for scale, label in [(10_000, "10K"), (100_000, "100K"), (1_000_000, "1M")]:
baseline = base_cost_per_request * scale
optimized = optimized_cost * scale
savings = baseline - optimized
lines.append(
f"| {label} requests/mo | ${baseline:,.0f} | ${optimized:,.0f} | ${savings:,.0f} |"
)
lines.append("")
return "\n".join(lines)
# =============================================================================
# MAIN
# =============================================================================
def main():
parser = argparse.ArgumentParser(description="Headroom Agent Cost Benchmark")
parser.add_argument("--format", choices=["terminal", "markdown"], default="terminal")
parser.add_argument(
"--scenario",
choices=["all", "coding-agent", "cache", "rag", "scaling", "quality"],
default="all",
)
args = parser.parse_args()
results = []
print("Running benchmarks...\n")
if args.scenario in ("all", "coding-agent"):
print(" [1/5] Coding Agent Context Explosion...")
results.append(benchmark_coding_agent_explosion())
if args.scenario in ("all", "cache"):
print(" [2/5] Cache Alignment Impact...")
results.append(benchmark_cache_alignment())
if args.scenario in ("all", "rag"):
print(" [3/5] RAG Context Scaling...")
results.append(benchmark_rag_scaling())
if args.scenario in ("all", "scaling"):
print(" [4/5] Conversation Scaling...")
scaling_results = benchmark_conversation_scaling()
# Just add the 100-turn result to main results
results.append(scaling_results[3]) # 100 turns
if args.scenario in ("all", "quality"):
print(" [5/5] Quality Preservation...")
results.append(benchmark_quality_preservation())
print("\n" + generate_report(results, args.format))
if __name__ == "__main__":
main()
|