Build vs buy: should I build AI in-house or use an API?
Deciding whether to decide whether to build AI in-house or buy an API is a build-vs-buy and ROI question. Built for technical leaders making build-vs-buy calls, this page compares the AI approach to the alternative and shows when (or whether) it pays for itself.
Start here: Self-Hosted vs API Break-Even Calculator
Results update automatically as you type.
- API cost / request
- $0.000645
- GPU host / month
- $1,500.00
- Break-even volume
- 2,325,581 req/mo
Then: AI ROI Calculator
Results update automatically as you type.
- Monthly value
- $2,000.00
- Monthly cost
- $500.00
- Net / month
- $1,500.00
- ROI
- 300.0%
- Payback
- 2.0 mo
Why this isn't trivial
The part people underestimate: buying trades a per-use fee for speed, while building trades upfront and ops cost for control, so volume and time-to-market decide. In practice the biggest savings come from buying to start and revisiting in-house only at high, stable volume, so it is worth modelling before you commit.
How it's calculated
We estimate this by comparing API per-use cost at your volume against amortized build and operating cost. Every figure uses the current provider prices baked into the site (reviewed daily), and you can override any input to match your own assumptions.
Frequently asked questions
When should I build in-house?+
At high, stable volume where per-use API fees exceed amortized self-hosting.
What's the risk of buying?+
Price and dependency risk; mitigate with a portable design and volatility buffer.
Are these prices up to date?+
Yes. The model prices behind this calculator are refreshed and reviewed daily, so your estimate reflects current provider rates rather than a stale snapshot.
Related
Estimates for planning. Pricing data last reviewed 28 July 2026.