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
Break-Even Threshold
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.