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Freedom251 › Blog › AI

How to Estimate the Cost and Power Use of Running AI Models

By Freedom251 Team · · 5 min read

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There is no universal cost or electricity figure for an AI prompt. Estimate API charges and energy separately: API prices depend on the provider’s billable categories and current rates, while energy depends on the model, workload, hardware, utilization and what parts of the serving system you count.

Estimate hosted API charges from the provider’s current rates

For a hosted API, the provider’s bill is not a direct measurement of electricity. Calculate each billable category using the applicable published rate:

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API cost = (input tokens ÷ billing unit × input rate) + (output tokens ÷ billing unit × output rate) + other applicable charges.

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Check the selected model or service tier’s official pricing page on the day you estimate. Include any distinct prices for cached input, reasoning tokens, tools, images, audio or batch processing when they apply. Record the provider, model or tier, currency, billing unit, relevant region and rate-check date. Rates can change; a remembered price is not a current quote. The calculation needs the chosen provider’s current rate schedule, so no single price can be supplied here.

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Turn a workload into an estimate

Estimate the number of input and output tokens for the workload, then apply the matching rates to each category. For a workload of many requests, calculate the expected totals across all requests. Agentic or reasoning workflows can use substantially more tokens than a short answer, so estimate the whole workflow rather than counting only the user’s prompt.

Estimate self-hosted compute cost using throughput

For self-hosting, an hourly accelerator price alone does not tell you the cost per token. A practical compute-cost approximation is:

Compute cost per million tokens = effective infrastructure cost per hour ÷ delivered tokens per hour × 1,000,000.

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Use delivered throughput measured or benchmarked with the same model, precision, prompt and output lengths, batch size or concurrency, serving stack, and latency target you expect to use. Include the host and other infrastructure costs relevant to your estimate. For a fuller total cost of ownership, account for hardware purchase amortization or lease, host CPU and memory, networking, storage, software, facility and power costs, and operations.

Account for utilization and task size

Include utilization in the calculation: paid-for capacity that sits idle lowers delivered tokens per hour and raises cost per token. Compare cost per completed task as well as cost per token when tasks use different numbers of tokens; the cheaper token may not produce the cheaper completed task if one workflow needs more tokens.

NVIDIA’s token-economics guide recommends looking at both throughput per megawatt and cost per token. Its H100/B200 example assumes $3.50 per H100-hour and $6.00 per B200-hour, then compares illustrative workloads. Those are assumptions used to demonstrate the calculation, not current universal prices or an independent cross-vendor benchmark. Read NVIDIA’s token economics guide.

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The same NVIDIA page reports a vendor-published GB300 NVL72/Hopper comparison of $4.20 versus $0.12 per million tokens and 54,000 versus 2.8 million tokens per second per megawatt. It also cites a SemiAnalysis InferenceX result of $0.123 per million tokens at 116 tokens per second per user interactivity, as of April 2026. These are benchmark- and workload-specific claims, not a typical cost a reader should expect to pay.

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Calculate electricity use and cost from power

If you have average power for the system being measured and runtime, calculate energy in kilowatt-hours:

Energy (kWh) = average power (W) × runtime (hours) ÷ 1,000.

Then apply the electricity tariff for the relevant location and billing period:

Electricity cost = energy (kWh) × applicable tariff ($/kWh).

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Use your actual tariff rather than a generic price. If estimating from inference throughput instead of metered runtime, first estimate energy per token from measured power and delivered token rate, or use an explicit hardware-and-workload model. Keep prompt processing (prefill) separate from text generation (decode) where possible; they place different demands on the hardware.

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Be explicit about the system boundary

Say what the power measurement or model includes. A GPU-only figure is not the same as total serving energy: a broader estimate may include idle provisioned machines, host CPU and RAM, and data-center power distribution and cooling. Google Cloud’s serving methodology accounts for achieved accelerator utilization, idle machines, host CPU and RAM, and data-center overhead. Google’s post explains why a chip-only estimate leaves out operational load: Google Cloud: Measuring the environmental impact of AI inference.

One way to model GPU-level inference energy is to account for model parameters and memory traffic, separating computation, parameter access, KV-cache writes and attention reads. The authors of this analytical approach describe it as an approximation, not a replacement for physical power measurement. Read the GPU-level energy analysis.

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Why published per-query energy estimates differ

Published estimates can use different models, workloads and system boundaries, so they should not be treated as direct comparisons unless those conditions match.

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Estimate What it covers How to interpret it
0.24 Wh per median Gemini Apps text prompt; 0.03 gCO2e and 0.26 mL water, reported by Google in 2025 Google’s broader serving methodology, including production utilization, idle machines, host CPU and RAM, and data-center overhead Google’s own estimate for Gemini Apps text prompts; it does not establish energy use for other models or providers. Google Cloud, August 21, 2025
0.10 Wh per median Gemini Apps text prompt, reported by Google in 2025 Google’s active-TPU/GPU-only calculation A narrower chip-energy boundary than Google’s 0.24 Wh figure; not a general estimate for other systems. Google Cloud, August 21, 2025
0.34 Wh median per query, with an interquartile range of 0.18–0.67 Wh, reported by Oviedo et al. in 2025 Modeled realistic workload assumptions for frontier-scale models over 200 billion parameters on an H100 node A modeled estimate, not a direct comparison with Google’s Gemini disclosure. The populations, serving systems and boundaries differ. Oviedo et al., 2025
4.32 Wh per query, reported by Oviedo et al. in 2025 A test-time-scaling scenario using 15 times more tokens per typical query A scenario estimate under the paper’s assumptions, not a typical per-prompt figure. Oviedo et al., 2025

These examples show why a per-prompt energy number needs its workload and boundary beside it. Google Cloud’s August 21, 2025 post, co-authored by Amin Vahdat and Jeff Dean, states: “Measuring the footprint of AI serving workloads isn’t simple.”

Identify the inputs that can change your estimate

When comparing estimates or services, match the conditions that materially affect cost and energy:

  • Model and workload: model size and architecture, quantization or precision, prompt length, generated-token count, and whether the work is prefill or decode.
  • Serving pattern: batch size, concurrency, context length and KV-cache behavior, serving software, utilization, and latency target.
  • System boundary: accelerator power alone versus a system or facility estimate that includes host equipment, idle capacity, cooling and power delivery.
  • Local costs: the applicable electricity tariff and, for self-hosting, infrastructure and operational costs.

For a meaningful comparison, align cost per million input and output tokens or cost per task, energy per request or token, throughput per watt or megawatt, latency at your intended concurrency, model quality, and included infrastructure. An hourly compute price by itself cannot establish which option is cheapest.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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