Local GPU vs Cloud API: Calculate the Break-Even Request Volume
A local GPU becomes cheaper than a cloud API only when monthly request volume covers its fixed cost through lower cost per request. Calculate that threshold using the API’s effective price after caching, then check whether the local system can actually serve that volume at the required quality and latency. A cheaper theoretical threshold is useless if the workload cannot meet those conditions. Scope: an illustrative monthly operating decision, with API rates checked on November 13, 2026 KST. Local hardware costs, request volumes and capacity below are assumptions, not measured performance or a hardware quotation. Terms and route through the calculation 1. Qualified request: an output that meets the task and service target 2. Effective API price: the average bill per request, including cache writes 3. Fixed cost and variable cost: monthly commitment versus additional work 4. Break-even volume: where the two monthly cost lines cross 5. Feasible capacity: requests deliverable wi...