GPU Cloud Unit-Economics Calculator
Utilization and realized price usually dominate the model. Hardware cost alone does not capture networking, facilities, financing, software, failures, or refresh risk.
What it calculates
A quoted GPU-hour price is not the same as realized revenue or return on hardware. This model combines GPU count, acquisition cost, utilization, rental price, power draw, electricity price, and other annual costs to estimate revenue, contribution, and simple hardware payback.
How this gpu cloud unit-economics calculator works
The model multiplies installed GPUs by billable hours and realized price. It subtracts modeled electricity and other annual operating costs, then divides hardware acquisition cost by annual contribution.
Formula
Annual revenue = GPUs × 8,760 × utilization × realized price per GPU-hour
Networking, CPUs, storage, buildings, software, support, customer concentration, debt service, and hardware failure can materially change economics.
Primary specifications
Before you use the result
Assumptions
- • Utilization represents billable, not merely powered-on, hours.
- • Power draw includes an explicit allocation for system and facility overhead.
- • Simple payback ignores financing, taxes, residual value, and the time value of money.
Quick start
- 1. Use realizable contracted pricing rather than an advertised on-demand rate.
- 2. Stress utilization, power, downtime, and non-power operating costs.
- 3. Compare payback with hardware life and the risk of price-performance obsolescence.
Inputs and units
| Input | Unit | Default |
|---|---|---|
| GPU count | number | 64 |
| Acquisition cost per GPU | US dollars | $30,000 |
| Billable utilization | percent | 65% |
| Realized price per GPU-hour | US dollars | $2.50 |
| Power draw per GPU | kilowatts, including overhead | 1 kW incl. overhead |
| Electricity price | US$ per kilowatt-hour | $0.08 per kWh |
| Other annual costs | US dollars | $300,000 |
Worked example (hypothetical)
GPU Cloud Unit-Economics Calculator: worked example
Hypothetical example using the calculator's default inputs. The numbers are illustrative, not a forecast or a quote.
| GPU count | 64 |
|---|---|
| Acquisition cost per GPU | $30,000 |
| Billable utilization | 65% |
| Realized price per GPU-hour | $2.50 |
| Power draw per GPU | 1 kW incl. overhead |
| Electricity price | $0.08 per kWh |
| Other annual costs | $300,000 |
| Annual contribution | $581,887 |
|---|---|
| Annual revenue | $911,040 |
| Simple hardware payback | 3.3 years |
With these inputs, the annual contribution is $581,887.
Frequently asked questions
What is billable GPU utilization?
It is the share of total installed GPU-hours that produces customer revenue, after idle time, maintenance, and internal use.
Does payback equal investment return?
No. Simple payback ignores timing, financing, taxes, residual value, and cash flows after the payback date.
Why include other annual costs?
GPU operators also incur networking, facilities, staffing, software, maintenance, support, insurance, and financing costs.
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Learn the concept
The math is easy. The macro is hard.
GPU Cloud Unit-Economics Calculator shows the arithmetic. Members get the monthly call that decides which inputs matter, plus written breakpoints when the facts move. $39/month or $249/year.
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