Blog

Local AI Cost Calculator: Buy vs Rent vs API

Should you buy hardware, rent a cloud GPU, or just pay for an API? Enter your real usage — get the break-even math, honestly.

How the math works

Three honest cost models, computed live above:

  • Buy — the hardware price upfront, plus electricity: TDP × a 0.7 typical-load factor × your active hours × your $/kWh. Hardware prices come from our tracked data layer, with used gear labeled as such.
  • Rent — a cloud GPU by the hour (RunPod, Vast.ai and similar; the default rate is a typical RTX-4090-class community price — check current rates, they move weekly).
  • API — pay per token. Enter a blended (input+output) price per million tokens for the model class you'd actually use.

The break-even months are simply: hardware price ÷ (what you'd pay monthly the other way − your electricity). Dots on the chart mark them.

What the calculator deliberately ignores

In the interest of honesty: resale value (used hardware holds value well, which favors buying more than these curves show), cloud spot-price swings, API price cuts (historically frequent — long-horizon API totals are probably overestimates), and most importantly everything that isn't money: privacy, working offline, latency, no rate limits, and the simple joy of owning the machine. Plenty of people run local AI knowing it costs more than an API. That's a feature, not an error.

Use it with the fit calculator

This page answers "should I buy at all?" Its sibling, Can I run it?, answers "what exactly can the hardware run?" — model sizes, quantization, context length, and which machines fit. Between the two you can go from curiosity to a defensible purchase decision without leaving the site.

Disclosure: hardware links and the cloud-GPU links on this page are affiliate/referral links (details). They never change the math.

Get the Vetted Consumer newsletter

Reviews, buying advice, and field notes. Delivered monthly.

Almost there — check your inbox and click the confirmation link. ✓

Something went wrong — please try again, or email hello@vettedconsumer.com.