A Systematic Investigation of Document Chunking Strategies and Embedding Sensitivity
Organizations: Open Source Institute, Faculty of Science and Technology, University of Canberra, Canberra, Australia
Abstract
We present the first large-scale, cross-domain evaluation of document chunking strategies for dense retrieval, addressing a critical but underexplored aspect of retrieval-augmented systems. In our study, 36 segmentation methods spanning fixed-size, semantic, structure-aware, hierarchical, adaptive, and LLM-assisted approaches are benchmarked across six diverse knowledge domains using five different embedding models. Retrieval performance is assessed using graded relevance scores from a state-of-the-art LLM evaluator, with Normalised DCG@5 as the primary metric (complemented by Hit@5 and MRR). Our experiments show that content-aware chunking significantly improves retrieval effectiveness over naive fixed-length splitting. The top-performing strategy, Paragraph Group Chunking, achieved the highest overall accuracy (mean nDCG@50.459) and substantially better top-rank hit rates (Precision@124%, Hit@559%). In contrast, simple fixed-size character chunking as baselines performed poorly (nDCG@5 < 0.244, Precision@12-3%). We observe pronounced domain-specific differences: dynamic token sizing is strongest in biology, physics and health, while paragraph grouping is strongest in legal and maths. Larger embedding models yield higher absolute scores but remain sensitive to suboptimal segmentation, indicating that better chunking and large embeddings provide complementary benefits. In addition to accuracy gains, we quantify the efficiency trade-offs of advanced chunking. Producing more, smaller chunks can increase index size and latency. Consequently, we identify methods (like dynamic chunking) that approach an optimal balance of effectiveness and efficiency. These findings establish chunking as a vital lever for improving retrieval performance and reliability.
Figures & tables
| Category | Strategy Name | Abbreviation | Configuration Set |
| Deterministic / Rule-Based | Fixed Character Chunking | FCC | char_size=100, overlap=10 |
| Fixed Token Chunking | FC | token_size=50, overlap=0 | |
| Overlapping Token Chunking | OFC | token_size=50, overlap=10 | |
| Sliding Window Token Chunking | SWC | window=50, step=25 | |
| Length Aware Chunking | LAC | target=500, tolerance=100 | |
| Sentence Based Chunking | SBC | sentence boundaries |
| Strategy | Operational Definition | Formal Specification and Parameters |
|---|---|---|
| Fixed Token Chunking (FC) | The document is tokenised and split into contiguous, non-overlapping chunks of fixed length. Each chunk is treated as an independent retrieval unit. | Let be the token sequence of document . The -th chunk is defined as , where is the fixed number of tokens per chunk. |
| Fixed Character Chunking (FCC) | The raw document text is divided into contiguous character spans of equal length, independent of linguistic structure. | Let be a character sequence. , where is the fixed number of characters per chunk. |
| Sliding Window Token Chunking (SWC / OFC) | Overlapping token windows are generated to preserve contextual continuity across chunk boundaries. | , where is the window size (tokens) and is the stride. Overlap occurs when . |
| Sentence-Based and Sentence-Group Chunking (SBC / SGC) | Chunks are formed by grouping one or more consecutive sentences, preserving sentence boundaries. | Let denote sentences in . , where is the number of sentences per chunk and is sentence overlap. |
| Paragraph-Based and Paragraph-Group Chunking (PBC / PGC) | Chunks align with paragraph boundaries or groups of adjacent paragraphs. | Let denote paragraphs. , where is the number of paragraphs and is overlap. |
| Recursive Chunking (RC / RTF) | Documents are recursively segmented using increasingly fine rules until a size constraint is met, with fallback token splitting if required. | Given segment , recursively apply until , where is the maximum allowable chunk size (tokens or characters). |
| Strategy | RAM Cost | Chunking | Query Time | Strategy | RAM Cost | Chunking | Query Time |
|---|---|---|---|---|---|---|---|
| (MB) | Time (s) | (ms) | (MB) | Time (s) | (ms) | ||
| LSTC | 5,672.16 | 10.02 | 3.84 | LCTS | 929.34 | 7.77 | 5.28 |
| LBDC | 5,417.98 | 9.27 | 3.62 | LCSI | 926.96 | 9.77 | 3.92 |
| TBC | 2,849.53 | 133.79 | 4.37 | HPGC | 925.70 | 8.52 | 4.27 |
| HSSC | 1,744.49 | 77.40 | 4.02 | SBC | 922.47 | 9.52 | 3.88 |
| HSmFC | 1,700.33 | 75.15 | 4.40 | FC | 915.20 | 7.77 | 4.02 |
Document Chunking
Document chunking splits long or structured documents into coherent units for retrieval, question answering, and other language-model tasks.
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