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As your LLM-backed products grow in adoption, your costs can quickly skyrocket.
This cost increase is inevitable, but its growth can be heavily controlled with an effective LLM routing strategy.
We’ll help you implement LLM routing successfully by breaking down how it works, common strategies you can put into place, and the platforms that can help you turn these strategies into reality.
It's logic that decides which model should handle each LLM request based on factors like task type, required quality, cost, latency, safety, and model availability. You can configure it in-house or use a 3rd-party platform.

Companies typically implement LLM routing for a combination of reasons. Here are just a few:
Related: How multi-model routing works
There’s no one-size-fits-all LLM routing strategy. Your best option can vary by use case, product, customer segment, and more.
That said, here’s a breakdown of each approach, along with its pros and cons.
You’ll route requests to the cheapest model that can still meet the quality bar for a given task, with a fallback chain to more capable (and more expensive) models if needed.
This is ideal when you have a high volume of relatively simple requests, like classifying data, summarizing information, tagging data, etc. and a small quality variance is acceptable.
But it can backfire for tasks that need deep reasoning, careful instruction-following, or long-context performance. And if the cheaper model consistently fails to meet the quality bar, you’ll have frequent fallbacks, which can add latency and sometimes increase your total costs (you’d pay for the first attempt and the fallback).
Related: A guide to optimizing LLM costs
You’ll route requests to the provider and model that’ll start streaming the fastest for that workload, and fall back automatically if the first-choice provider degrades or errors.

This approach works great when responsiveness matters more than perfect outputs. In some cases, shaving latency can also improve your agents’ completion rates.
That said, it’s suboptimal when total completion time or correctness is as or more important than time-to-value. And, similar to the last approach, it can cause frequent fallbacks (e.g., if the “fastest” provider is often rate-limited), which can increase end-to-end latency via retries and provider switching.
You’ll route requests to the best-performing model(s) for the task, using a performance-optimized routing policy, with fallback to the next-best option if the top choice is unavailable.
This is the best choice when quality is the priority (i.e., you’re willing to go so far as to sacrifice savings and speed for quality).
But if you’re handling a high volume of traffic, using a top-tier model on every request can be cost-prohibitive. So even if quality is your priority, you may only be able to apply this approach to certain sets of users.

Related: How a zero data retention gateway works
You can try to build and maintain your own routing logic, but it’s in your team’s best interest to outsource it; this lets your engineers focus on the work they’re uniquely qualified to perform.
To that end, here are the LLM routing tools you should evaluate.
Merge Gateway is a unified API and control plane for building, scaling, and optimizing AI-powered products across multiple LLM providers.

It adds built-in routing and fallback, cost governance, unified billing, and request-level observability so teams can run LLM traffic in production without stitching together provider-specific infrastructure.

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OpenRouter is a multi-model access layer that gives developers a single API to call different LLM providers. It's best known for basic model routing aimed at keeping applications running (e.g., through fallbacks).

Related: The top alternatives to OpenRouter
LiteLLM is a lightweight, self-hosted proxy gateway that’s OpenAI-compatible and can be used as an in-house routing layer for multi-provider LLM access.

Related: The best alternatives to LiteLLM in 2026
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In case you have any more questions on LLM routing, we’ve addressed additional commonly-asked questions below.
Cascading routing, or fallback routing, is when you route a request through a predefined, ordered list of models.
Your fallback models only get triggered if the preferred choice(s) doesn’t meet some success condition (e.g., failing). For example, you can try GPT 5.4 first. If it fails the check, fall back to Claude Sonnet 4.6. And if that fails, move on to Gemini 2.5 Pro.
Predictive routing lets you automate routing. You can just define what you’re optimizing for (e.g., minimizing spend per request) and the router uses signals about the request (e.g., task complexity) to decide which model to send it to.
Cascading LLM routing is typically the best starting point, as you might not be using many models yet and need to ship your product quickly. That said, you’ll eventually want to graduate to predictive routing as you scale. It lets you leverage more models effectively, which'll translate to more cost savings and performance improvements.
It depends on the types of models you’re using, how you’re using them, and the scale at which they’re being used.
In general, an effective routing implementation saves companies anywhere from a few thousand to tens of thousands of dollars per month.
It makes sense in a wide variety of scenarios. If any of the following resonate with you, it’s likely worth adopting.
It can be good enough at the start. But as request types diversify, static rules can hurt latency and reliability by causing avoidable retries, escalations, and timeouts. These issues only get worse at scale.
Integrate once with Merge Gateway’s API, then automatically route requests across providers based on cost, latency, and output quality.