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LLM TCO Calculator

API, fine-tune or self-host? Compare 3 scenarios with 1/2/3-year total cost of ownership.

TL;DR

One-line answer: 1/2/3-year total cost for API, fine-tune and self-host scenarios.

  • Projection from monthly queries and average input/output tokens.
  • GPU CapEx, electricity, maintenance and engineer share included for self-host.
  • Recommended scenario for your inputs + pros/cons summary.
Definition
LLM TCO
The total cost of ownership of an LLM solution, comparing API consumption, fine-tune + hosted, or full self-host across token, infrastructure, staffing and electricity items.
Also known as: LLM total cost of ownership, LLM TCO, AI cost comparison

Inputs

3 scenarios

API

$11,250/mo

3y · $405,000

Fine-tune + hosted

$3,150/mo

3y · $124,200

Self-host (Llama 3.1)

$2,357/mo

3y · $91,340

Recommended for your case

If you have high volume and data sovereignty needs, self-host wins. Plan CapEx + 1 MLOps engineer.

  • API
  • + Fastest start
  • + Zero ops
  • Cost scales linearly
  • Vendor lock-in
  • Fine-tune + hosted
  • + Domain quality
  • + Lower per-token
  • Re-train every 6 mo
  • Hosted infra cost
  • Self-host (Llama 3.1)
  • + Data sovereignty
  • + Predictable cost
  • Big upfront CapEx
  • MLOps headcount

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Calculations rely on Q1 2026 public pricing and standard assumptions; estimates only.

References

  1. , OpenAI
  2. , Anthropic
  3. , Lambda
  4. , NVIDIA