Why This Comparison Matters
Training modern machine learning models often requires high-end graphics processing units. Cloud platforms rent GPUs by the hour, eliminating upfront costs and providing flexibility. However, frequent users may find that the cumulative rental fees surpass the cost of owning hardware. Purchasing a GPU involves significant capital but can pay off if utilized heavily, especially when factoring in resale value at upgrade time. Electricity usage also plays a role, as running a GPU locally incurs ongoing power costs. This calculator contrasts the monthly expenses of renting versus owning so you can gauge the break-even point and make informed infrastructure decisions.
Developers, researchers, and small businesses face unique constraints. Cloud rentals excel for bursty workloads or experimentation, while owned GPUs offer predictable pricing for continuous training schedules. The tool integrates key variables: purchase price, expected resale value, lifespan, rental rate, monthly usage hours, power draw, and electricity cost. By adjusting these inputs, you can evaluate scenarios ranging from occasional hobby projects to full-time production training.
How the Calculation Works
The monthly rental cost is the product of usage hours and the hourly rate. Ownership cost divides the net purchase price (purchase minus resale) by the number of months you expect to keep the card, then adds the electricity expense for running it during those hours. If the ownership cost falls below the rental cost, buying is cheaper, and vice versa. The calculator provides both totals and the difference.
The ownership cost per month is:
Where is purchase cost, resale value, lifespan in months, power draw in kW, monthly hours, and electricity cost per kWh. Rental cost per month equals . The difference returned is .
Worked Example
Suppose you train models 100 hours per month. Cloud rental of a comparable GPU costs $3 per hour, so monthly rental expense is 100 × $3 = $300. Buying the same GPU costs $2,000, with an expected resale value of $800 after 24 months. The card draws 0.25 kW during training, and electricity costs $0.12 per kWh. The ownership cost per month is (2,000 − 800) / 24 + 0.25 × 100 × 0.12 = $50 + $3 = $53. Renting costs $300, so owning saves $247 per month under these assumptions. If usage were only 10 hours per month, the ownership cost would still be $53 while renting would drop to $30, making cloud GPU rental cheaper. The break-even usage is where both totals match.
Scenario Comparison
The first table shows monthly rental costs for different usage levels at $3 per hour.
| Hours | Rental Cost ($) |
|---|---|
| 50 | 150 |
| 100 | 300 |
| 200 | 600 |
The second table displays ownership costs for varying lifespans with the same purchase, resale, power, and electricity assumptions above.
| Lifespan (months) | Ownership Cost ($/mo) |
|---|---|
| 12 | 103.00 |
| 24 | 53.00 |
| 36 | 36.67 |
Limitations and Assumptions
The model assumes consistent monthly usage and constant rental rates. Cloud providers may offer spot pricing or sustained-use discounts that lower costs, while purchased hardware may sit idle during slow periods, reducing effective utilization. Electricity rates can fluctuate, and additional expenses like cooling or rack space are ignored. Depreciation schedules and tax implications for businesses are beyond scope. Resale value is an estimate; market demand for used GPUs can change rapidly. The calculator also omits potential downtime costs if a personal GPU fails without warranty coverage.
Despite simplifications, the tool captures the core economics for independent developers and small teams. By tweaking inputs, users can model scenarios such as renting initially and buying later, or deploying a mix of owned and cloud GPUs. Understanding the cost structure aids budgeting and helps justify capital expenditures to stakeholders.
Further Reading
For additional context on rental pricing, see the cloud GPU rental cost calculator. If you are worried about underutilized hardware, the GPU idle time cost calculator can help quantify waste. Gamers evaluating similar trade-offs may appreciate the cloud gaming subscription vs gaming PC cost calculator.