What does it actually cost?
Upfront hardware + electricity + amortization vs cloud API equivalent. Every assumption visible. Every formula sourced. No hidden multipliers — the breakdown is the source of truth.
A third option between an API and buying hardware: run open-weight models yourself on a GPU you rent by the hour, and pay only while the instance is up. Privacy depends on the host you pick, so read its terms before you send anything sensitive.
Referral links: RunLocalAI may earn a commission or account credits if you sign up and rent, at no extra cost to you. Hourly rates and which GPUs are listed change all the time, so check the provider's page before you start. How we make money.
- Upfront hardware cost from our planning estimate (our own price estimate where we have one, otherwise launch MSRP) — not a live price.
- Electricity over the full ownership horizon at your local rate.
- Token throughput from measured or bandwidth-extrapolated tok/s.
- Cloud equivalent cost at a representative $/M-tokens rate.
- Cooling/AC overhead (typically +10–30% on top of TDP).
- Resale value at end of amortization horizon.
- Income-tax implications (deductible business expense).
- Privacy / latency / offline benefits — those are non-monetary but real reasons local can be the right answer even when cloud is cheaper.
Full math: /guides/methodology · Want measured tok/s on this rig? Submit a benchmark.