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LLM Self-Hosted vs API Calculator

Calculate when self-hosting an LLM pays off vs using cloud APIs: the token volume where rented GPUs beat API prices, and what each costs at yours.

v2026.10.08

Qwen 2.5 32B · 1 GPU per copy on A100 80G

GPU and cost detailsA100 80G · 70% util · 40% cached

GPU

$/mo
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TB
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$/1M
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Rental defaults: RunPod on-demand $1.59/h × 730 h. Maintenance is a % of GPU rental + storage; storage adds ~$25/TB-month. GPUs are added automatically when the model or your volume needs more.

Self-hosting breaks even at

~435Mtokens / month

You're at 2B: self-hosting saves $3,511 a month.

$100k$10k$1k$100$10100M1B10BYou · 2BBreak-even 435M
API (GPT-6.1 Sol) Self-host (32B on A100 80G) self-host cheaperMonthly cost by tokens/month · log scales
API · GPT-6.1 Sol
$6,120/mo
Self-host · 2× A100 80G
$2,609/mo
Setup paid back in
1.1 months

API list prices blended 50/50 input/output · GPU rental from RunPod on-demand · throughput is a rough heuristic

Prices as of Oct 4, 2026; check the provider for current rates. Terms

How it’s worked outMonthly costs at each volume; break-even where the lines cross
  • API monthly = tokens × (1 − cached %) ÷ 1M × $/1M × (1 − batch discount).
  • Self-host monthly = GPU rental + storage + network + maintenance. Rented GPUs include power. GPUs are whole: enough per copy for the model’s VRAM, and enough copies for your volume, assuming ~1,000 tokens/s per copy for an 8B-class model on an A100, scaled by model size, GPU and utilization.
  • The break-even volume is the lowest monthly volume where self-hosting costs less per month. Setup (1.5× the first month) is paid back in setup ÷ monthly saving.
  • Thresholds for the 1–3 year advice: payback under 12 months → self-host; over 36 months → API; in between → hybrid.
How this works: Method, 6 sources,

How this works

Method

API cost = monthly tokens × (1 − cached share) ÷ 1M × the model’s list price (input and output blended 50/50) × (1 − batch discount). Self-hosting is whole rented GPUs (enough for the model’s memory, with copies added until roughly 1,000 tokens a second per copy for an 8B-class model on an A100, scaled by model size, GPU and utilization, covers your volume) plus storage, network and maintenance; setup is taken as 1.5× a month and paid back in setup ÷ monthly saving.

Sources

Limits

Prices as of Oct 4, 2026; check the provider for current rates.

Changes

  • Added a printable report with the cost-by-volume chart, the one- and three-year costs and the self-hosting breakdown.
  • Redesigned around a cost-by-volume chart with the break-even point; API prices now come from provider price lists, GPU rental from RunPod, and whole GPUs are sized to fit each model.
  • A price you type in is now kept when you switch API models.
  • Results now update as you type, starting from a filled-in example.
  • First published.

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Frequently Asked Questions

What is the break-even point?

The break-even point is when your total self-hosted costs (including the one-time setup) equal your total API costs. After this point, self-hosting becomes more cost-effective. The calculator shows exactly when this happens based on your input.

How do I calculate my monthly token volume?

Check your API provider's dashboard for monthly token usage. For self-hosted estimates, multiply average requests per month by average tokens per request. Most chat applications use 500-2000 tokens per user interaction.

Which GPU should I choose for self-hosting?

A100 80GB is best for production workloads with large models. H100 offers better performance but at higher cost. 4090 24GB is great for development/testing or smaller models under 7B parameters.

What are the hidden costs of self-hosting?

Beyond hardware, consider network bandwidth, backup storage, monitoring tools, and DevOps time (and power and cooling if you own the hardware; rented cloud GPUs already include them). The calculator includes maintenance, network, and storage costs but operational overhead varies by team.

When should I stick with cloud APIs?

Stick with APIs if: you need the latest model versions, require high availability without operational overhead, have unpredictable traffic patterns, or plan to stop usage within 12 months.

Can I use hybrid approach?

Yes! Many teams use a hybrid approach: handle most traffic with self-hosted models for cost savings, but use APIs for edge cases, model updates, or overflow during peak times.

How does batching affect costs?

Batching can reduce API costs by 10-30% for supported models. For self-hosted, batching improves GPU utilization, effectively lowering per-token costs. The calculator includes batch discount and utilization inputs.