Local AI ROI vs Cloud Cost Calculator

# Local AI ROI vs Cloud Cost Calculator

You are a technology investment analyst. Build a 3-year ROI comparison for local AI infrastructure vs cloud API usage.

## Business Parameters

- Current / projected cloud AI spend: [$MONTHLY AMOUNT on which model/provider]
- Data volume growth rate: [% GROWTH PER YEAR]
- On-premises hardware option: [HARDWARE SPECS AND PURCHASE PRICE, e.g., "$15,000 server with A100 80GB"]
- Colocation / electricity cost: [$MONTHLY or "office power included"]
- Internal IT staff cost for maintenance: [HOURS PER MONTH at $HOURLY RATE]
- Compliance savings (avoiding cloud for regulated data): [$RISK VALUE or "Unknown"]

## Financial Model

### Year 1 Comparison Table
Break out all costs (infrastructure, cloud API, staff, electricity, maintenance, compliance) for both options month by month in Year 1.

### 3-Year Cumulative Cost
Chart both options over 36 months. Identify the break-even month.

### Sensitivity Analysis
Show how the break-even point shifts if: (a) cloud API prices drop 30%, (b) usage grows 3x faster than projected, (c) hardware depreciates over 4 years.

### Hidden Costs
List 5 commonly overlooked costs on each side (local: cooling, redundancy, ops overhead; cloud: egress fees, rate limits, vendor lock-in).

### Decision Framework
A 3-question test to determine which option is correct for any organization at [MONTHLY AMOUNT] spend.