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RAG System Monthly Cost Calculator

Calculate RAG Costs

Estimate monthly RAG system expenses

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Compare managed vs self-hosted RAG costs

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Formula

Total Cost = Vector DB + Embedding API + LLM API + Storage Costs

Frequently Asked Questions

What's the main cost driver in RAG systems?
Vector database (if managed like Pinecone) is often the largest fixed cost. LLM API calls scale with query volume. Embeddings are relatively cheap. For high volume (1M+ queries/mo), self-hosting becomes cheaper.
How can I reduce RAG costs?
Cache embeddings/results. Use cheaper embedding models. Batch API calls. Implement pagination/filtering before LLM. Self-host if volume justifies it. Use smaller, cheaper LLMs for retrieval scoring.
What about indexing and updates?
One-time indexing cost is minimal. Regular updates can be batched monthly. Re-embedding documents is main cost if data changes frequently. Plan update frequency carefully.

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