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Is RAG or fine-tuning cheaper for my use case?

Fine-tuning is paid once; retrieval is paid on every request. That difference in shape, not the headline prices, is what decides which is cheaper for you.

5 inputs4 questions answeredUpdated for 2026 hardware
RAG vs Fine-Tune Cost — Is RAG or fine-tuning cheaper for my use case?
Answer first

The short answer

Computed from this tool’s default settings — requests per day and the rest as most people start. Change them below for your own case.

Fine-tune pays back after0.6 days

At 1,000 requests a day, the retrieved context costs more than the fine-tune within 0.6 days. Fine-tuning is the cheaper shape here — but only if the knowledge is stable enough not to need redoing.

The calculator

RAG vs Fine-Tune Cost

A one-off training cost against the per-request cost of retrieval.

Your setup

RAG pays this on every single request. Fine-tuning pays once.

Fine-tune pays back after0.6 days

At 1,000 requests a day, the retrieved context costs more than the fine-tune within 0.6 days. Fine-tuning is the cheaper shape here — but only if the knowledge is stable enough not to need redoing.

Fine-tune once$5.52
RAG per request$0.00900
RAG per month$273.60
Break-even613 requests
Inputs

What each setting changes

Every input moves the result for a reason. This is what each one does and where to find the value for your own machine.

SettingDefaultWhat it changes
Requests per day1000Your own figure, starting from 1,000. Change it to match what you actually run.
Retrieved context per request3000 tokensRAG pays this on every single request. Fine-tuning pays once.
Input price3 per 1MYour own figure in per 1M, starting from 3. Change it to match what you actually run.
Fine-tune GPU hours8 hoursYour own figure in hours, starting from 8. Change it to match what you actually run.
GPU hourly rate0.69 per hourYour own figure in per hour, starting from 0.69. Change it to match what you actually run.
Method

How this is calculated

No lookup tables and no invented constants. Here is the arithmetic, so you can check it against your own numbers.

The two cost shapes are different in kind: fine-tuning is a fixed cost paid once, RAG is a recurring cost paid on every request as extra input tokens. So the answer is a break-even in requests, not a verdict.

Cost is not the only axis, and often not the deciding one. RAG updates the moment your documents change and can cite them; a fine-tune bakes knowledge in and has to be redone. Size the money here, then decide on freshness.

These are well-founded engineering estimates, not benchmark results. Your quantisation, runtime and context length all move the real number, and usable memory is an assumption rather than a specification. See the full methodology for every assumption behind these figures.

Use cases

Who this is for

The three situations that bring people to this calculation.

Use case 01

Choosing an approach

Find the request volume where fine-tuning wins.

Use case 02

High traffic

See what retrieved context costs at scale.

Use case 03

Planning

Weigh a one-off training cost against a recurring one.

Walkthrough

How to use this calculator

Four steps, no account, nothing leaves your browser.

  1. Set requests per day

    Start at the top of the panel. Every figure recalculates as you change it — there is no submit button, because watching the number move is the point.

  2. Adjust the rest to match your setup

    4 further settings: retrieved context per request, input price, fine-tune gpu hours, gpu hourly rate. Defaults are the common case, so change only what differs for you.

  3. Read the headline, then the table

    The large figure answers the question. The table underneath shows how the answer changes across nearby settings, which is usually where the decision actually gets made.

  4. Check it against the method

    The arithmetic is written out above. If a number looks wrong for your hardware, the assumptions are the first place to look — usable memory and quantisation are the two that vary most.

Questions

Is RAG or fine-tuning cheaper for my use case: common questions

The questions people ask about this, answered without hedging.

Is RAG or fine-tuning cheaper?

At low volume, RAG — a fine-tune has to be paid for before it saves anything. At high volume the per-request context cost overtakes it, sometimes within days.

Which should I choose if cost is close?

RAG, in most cases. It updates the moment your documents change, it can cite sources, and it does not need redoing when the base model is replaced.

When is fine-tuning clearly right?

For behaviour rather than knowledge — tone, format, following a house style, or a task the base model does badly. Facts belong in retrieval; behaviour belongs in weights.

Can I use both?

Frequently the best answer: fine-tune for the format and behaviour you want, retrieve for the facts. They solve different problems.

The rest of the set

All 50 run on the same arithmetic, so answers across them agree.

Coverage

Searches this page answers

Different ways of asking the same question, all resolved above.

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Next step

Now find the models that fit

Sizing is only half the problem. Model Radar takes your hardware and shows which models actually run on it, ranked by what they are good at — the same arithmetic as this page, applied to every model worth running.