Private AI is more likely to show an advantage with stable high volume, suitable hardware utilisation, reusable workloads and existing operating capability. Data, latency, maintenance and model updates still matter.
Free iGears AI Economics tool
API vs Private AI TCO Calculator
Compare API and private AI using your own pricing and workload assumptions. The tool does not embed volatile provider prices and does not assume that either private AI or API is always cheaper.
Directional estimate
Complete the fields and select “Calculate result”.
Method
Use your own prices to avoid stale data
Monthly API cost = input-token cost after the entered cache share and discount + output-token cost + other API charges.
Monthly private AI TCO = hardware ÷ amortisation months + electricity + hosting + storage + technical support + other operating cost.
Break-even usage multiple = monthly private AI TCO ÷ current monthly API cost.
Before using the tool, verify currency, per-million-token units, caching rules and the review date on the provider’s official pricing page. Non-financial factors include data control, latency, resilience, maintenance, model updates and lock-in.
Decision questions
API and private AI comparison questions
Start with the direct answer, then evaluate it against your workload, data and operating requirements.
Start with one measurable workflow
Book an AI Cost & Productivity Assessment
We map staff time, workload, AI and cloud cost, data boundaries and measurement before recommending the first workflow worth validating.
Final scope and fees are set out in a quotation after discovery.