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Calculate the annual electricity cost of a local streaming computer
Use average power draw under the actual streaming workload, not the computer’s power-supply rating or maximum nameplate draw. The calculation estimates variable energy charges; it does not include fixed charges on your electricity bill.
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- Measure or otherwise establish the setup’s representative average draw in watts while it encodes or relays the intended stream.
- Calculate annual energy use: watts ÷ 1,000 × hours per day × days per year. For a 24/7 setup, that is watts ÷ 1,000 × 8,760.
- Multiply annual kWh by your marginal electricity rate per kWh to estimate the annual variable energy cost.
For a U.S. reference, a hypothetical device drawing 100 W continuously uses 0.1 kW × 8,760 = 876 kWh a year. At the U.S. Energy Information Administration’s 2025 residential average of 17.30¢/kWh, that works out to about $151.55 annually. This is an illustrative calculation, not a measurement of a particular computer, and excludes fixed bill charges and rate-plan effects. Use your own tariff for an actual estimate. The EIA’s electricity price data reports a 2025 U.S. commercial average of 13.41¢/kWh; state all-sector averages ranged from 8.20¢/kWh in North Dakota to 35.72¢/kWh in Hawaii. Those figures describe different customer categories and locations, not a universal rate.
Include only costs that are genuinely incremental
If the streaming computer is already running for other reasons, distinguish the additional electricity attributable to streaming from the machine’s total draw. Include dedicated networking equipment only if it is part of the always-on setup and its power use is known. Treat existing hardware as a sunk cost unless you are explicitly comparing a new purchase or replacement. A time-of-use tariff can also make a simple annual-average rate less precise.
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Estimate the full annual VPS cost
Start with the monthly price of a suitable VPS and multiply by 12. Then check the plan’s resources and terms: CPU and RAM, storage, included outbound transfer, overage charges, operating-system options, backups, public IP pricing, and taxes. A low advertised price is not evidence that the instance has enough capacity for your workload.
As a published price example, AWS lists a Linux/Unix Amazon Lightsail general-purpose bundle with public IPv4 at $5 per month. The listed configuration has 0.5 GB memory, 2 vCPUs, 20 GB SSD storage, and 1 TB of transfer, equivalent to $60 over 12 months before additional charges. The pricing page also lists a $7-per-month tier with 1 GB memory and 2 TB of transfer. These are price and specification examples, not tested recommendations for streaming. Check AWS Lightsail pricing for current plan details and regional terms.
Distinguish a relay from an encoder
A VPS that forwards an already encoded feed has a different workload from one that encodes video. Encoding can require substantial CPU or GPU capacity depending on codec, resolution, and frame rate. No minimum viable instance size is established here for either job; confirm that the chosen VPS can handle your specific workflow rather than assuming the entry plan will.
Rank #2
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Check whether the VPS transfer allowance covers the stream
Continuous outbound video can consume several terabytes per month. A useful decimal estimate for constant bitrate is:
Mbps × 3,600 × 24 × 365 ÷ 8 ÷ 1,000,000 = approximate GB per year
That is about 3,942 GB per year, or 328.5 GB per month, for each 1 Mbps of continuous bitrate. YouTube Help’s current encoder guidance, accessed October 3, 2026, recommends H.264 ingest bitrates of 5 Mbps for 480p30, 8 Mbps for 720p30, and 14 Mbps for 1080p30. At those constant rates, approximate outbound transfer is:
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| H.264 example from YouTube guidance | Approximate transfer per month | Approximate transfer per year |
|---|---|---|
| 480p30 at 5 Mbps | 1.64 TB | 19.71 TB |
| 720p30 at 8 Mbps | 2.63 TB | 31.54 TB |
| 1080p30 at 14 Mbps | 4.60 TB | 55.19 TB |
These are mathematical estimates for an uninterrupted constant-rate feed, using decimal units. Real transfer can differ with bitrate variation, protocol overhead, stream interruptions, and provider counting rules. Compare the estimate with the VPS provider’s definition of included transfer and its overage pricing. For example, a 1 TB monthly allowance is below even the estimated 480p30 figure.
This is the encoder-to-YouTube ingest connection. YouTube transcodes live input into viewer formats; do not add a separate CDN viewer-delivery bill to this comparison unless your architecture actually includes one.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Compare local and VPS costs on equal assumptions
Use the same stream schedule and output settings for both options, and compare incremental annual costs rather than mixing a full electricity bill with only a VPS base price.
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| Cost or constraint | Local encoder | VPS encoder or relay |
|---|---|---|
| Recurring energy or compute | Measured average watts × annual hours × local marginal tariff | Monthly plan × 12, plus any necessary upgrades |
| Network transfer | Usually the existing internet service; include a cap or incremental fee if one applies | Included transfer, counting method, and overage price |
| Capacity | Actual CPU/GPU load and reliability for the chosen codec, resolution, and frame rate | CPU/RAM capacity; distinguish encoding from relaying an already encoded feed |
| Reliability and operations | Power, internet, heat, machine availability, and restart automation | Provider/network availability, remote access, backup and monitoring choices, and restart automation |
| Other costs | New hardware or metering only if actually needed | Storage, backups, IP, tax, operating system, and optional managed services where charged |
In the illustrative U.S. example, the 100 W device’s estimated annual variable electricity cost is about $151.55, while the cited Lightsail entry bundle totals $60 a year at its listed monthly price. But the 1 TB transfer allowance is lower than the estimated monthly transfer for even the cited 5 Mbps 480p30 example. Overages or a larger plan could materially change the VPS total. The comparison therefore does not establish that either option is cheaper for a particular channel.
Keep YouTube’s ingest and continuous-stream rules in view
YouTube’s encoder guidance accessed October 3, 2026 lists RTMP/RTMPS and H.264, H.265/HEVC, and AV1 for supported encoder settings. It recommends a two-second keyframe interval and says not to exceed four seconds; bitrate recommendations depend on codec, resolution, and frame rate. YouTube recommends RTMPS, a secure extension of RTMP. Choose settings supported by both your source and encoder rather than treating every listed codec as interchangeable. See YouTube’s encoder settings, bitrates, and resolutions guidance.
In YouTube’s encoder setup flow, enter the live server URL and stream key in the encoder, then start sending content. Treat the stream key as a credential and keep it private. YouTube’s setup guide says streams under 12 hours are automatically archived; it does not establish a guarantee about archives for longer broadcasts. A continuous-channel workflow should account for YouTube’s operation of long-running broadcasts and any need to segment streams. See YouTube’s instructions for creating a live stream with an encoder.
Or let it run in the cloud
If your goal is a YouTube channel that loops uploaded recordings without keeping a computer running at home, StreamNeo is a hosted alternative: upload a recording or build a playlist, add your YouTube stream key once, and go live. StreamNeo keeps the uploaded videos looping from the cloud; it does not go live from a camera.
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Quick Recap
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