Institute for Technology
← Back to Tools
Interactive Model

Enterprise Compute ROI Calculator

Determine the financial break-even point between deploying local hardware (e.g., H100 clusters) versus relying on managed cloud APIs. This model factors in power consumption, depreciation, and network egress.

Model Assumptions

E.g., $30,000 for H100 GPU.

Commercial average is ~$0.14.

Expected uptime processing workloads.

Cost to rent similar compute.

TCO Analysis Output

Monthly Amortized Hardware
$0
Over 36 months
Monthly Power & Cooling
$0
Assuming PUE 1.5, 700W peak

Break-Even Threshold

0
Months

Local deployment is viable. Hardware pays for itself before the 36-month depreciation cycle ends.

Local deployment is high risk. You are unlikely to recoup costs before hardware obsolescence. Consider cloud APIs.

Methodology & Formulas

This model uses a simplified 36-month straight-line depreciation schedule, which is standard for high-end accelerator hardware given the rapid pace of generation advancements.

  • Monthly Amortization: Hardware Cost / 36
  • Power Calculation: (0.7kW * 730 hours * Utilization * PUE 1.5) * Power Cost
  • Break-Even: Total Local TCO / (Cloud Hourly Rate * 730 * Utilization)

Note: This model explicitly excludes data egress fees and human capital costs (DevOps/MLOps engineers required to maintain the local cluster). For large deployments, egress fees often shift the equation significantly in favor of local compute.