Understanding what a RAG pipeline costs
Related: LLM API price comparison · Self-host vs cloud calculator · Local LLM VRAM calculator · Token counter
The three buckets: build, store, query
Retrieval cost splits cleanly. Build is the one-time job of embedding your entire corpus — it scales with total tokens and happens once (or again whenever you re-index). Store is the recurring vector-database bill for keeping those embeddings searchable. Query is the per-search cost of embedding each incoming question. This calculator shows all three, plus the raw size of the vectors so you can sanity-check any managed quote against what you're actually storing.
Why embedding is usually the cheap part
Embedding rates are a fraction of chat-completion rates, so for most corpora the one-time build lands in the single or double digits of dollars. The recurring spend is dominated by two things this tool deliberately keeps separate: the vector database (which rarely bills as pure per-GB storage) and the generation model that writes each answer. If your RAG bill feels high, it's almost always the hosting tier or the generation LLM — not the embeddings.
When self-hosting the retrieval layer wins
An open embedding model on a GPU you own has no per-token charge, and a self-hosted vector store (FAISS, pgvector, Qdrant, Chroma) has no per-GB charge — the marginal cost of both is electricity. Above a modest scale, owning the retrieval layer beats renting it, and the savings compound as your corpus and traffic grow. ABUZ8 OS runs this locally by default and only reaches for a paid API when a hosted model clearly beats your local one.
Is my data sent anywhere?
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