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Karatsuba multiplication is a divide-and-conquer algorithm for multiplication of integers. Splitting each operand into two blocks seems to require four smaller products; the Karatsuba three-product identity recovers the two cross terms together from just three products. Repeating that saving through recursion changes the time complexity from quadratic to $O(n^{{\log }_{2}3})$, where $n$ counts digits in a fixed positional notation. The exponent is about $1.585$: the benefit comes from the algorithm, even though each splitting step needs more addition and subtraction.

The Karatsuba worked multiplication below computes $1234\cdot 5678=7,006,652$ using $12\cdot 56$, $34\cdot 78$, and $46\cdot 134$. The last operand already shows why “half-size” needs care: Karatsuba carry handling and Karatsuba recursion termination account for the extra digit. Karatsuba digit-operation cost states the operation model; Karatsuba practical crossover explains why the asymptotic saving alone does not select a useful threshold.

The original 1962 paper presents a binary numeral system automaton construction: its Theorem 2 and proof reduce multiplication to taking squares of numbers, then reduce a larger square of a number to three smaller squares of numbers. Its footnote explicitly addresses the extra digit in a sum of halves. The sequential time complexity analysis below uses a different operation model from that paper's automaton size and depth bounds, including its Boolean circuit realization without feedback.^[ref]

Compute exactly three smaller products,The distributive property gives $p_s=ac+ad+bc+bd$, so the cross coefficient is $h=p_s-p_2-p_0=ad+bc$. Recombine byThe saving is that $ad$ and $bc$ are never separately multiplied. Multiplying a digit block by $q$ or $q^2$ shifts its position in positional notation; it does not require another general integer multiplication. Addition of the shifted results still requires Karatsuba carry handling.