"LLM Cost Estimation: Simplify Your Budgeting"



LLM Cost Calculation Framework

Large Language Models (LLMs) are powerful tools for generating human-like text, answering queries, and performing other complex tasks. However, understanding and managing their costs for inference, training, and fine-tuning is critical for project optimization. This framework will help you estimate the cost of inference and training by analyzing token consumption and model usage patterns.

Cost of Inference

Inference cost depends on the number of tokens processed during input and output, as well as the underlying LLM's pricing model. Most providers, like OpenAI, charge based on tokens. Here’s how you can estimate inference costs:

Step Description Example Estimated Tokens
1 Convert the query into tokens. "What is the capital of France?" 8 tokens
2 Estimate model’s output tokens. "The capital of France is Paris." 10 tokens
3 Calculate total tokens (input + output). 8 + 10 18 tokens
4 Use the model’s pricing to calculate cost. If cost is $0.00015 per token: $0.0027 for 18 tokens

Cost of Training

Training costs are significantly higher than inference as they involve multiple passes over large datasets. The cost can be calculated by considering the number of training tokens, model size, and compute infrastructure. Here is a simplified breakdown:

Component Description Example Cost Estimate
Data Size Total number of tokens in the dataset. 500 million tokens Varies with provider
Compute Time Time required on GPUs/TPUs to process the data. 500 training steps $50,000 (example estimate)
Model Size Larger models require more compute power. 175-Billion parameters Significantly higher costs

Cost of Fine-Tuning

Fine-tuning involves adapting a pre-trained model to a specific task using a smaller dataset. The cost of fine-tuning depends on the dataset size, number of epochs, and compute resources required:

Component Description Example Cost Estimate
Dataset Tokens Number of tokens in fine-tuning dataset. 10 million tokens Depends on model pricing
Compute Requirement GPU/TPU cost for fine-tuning passes. 50 epochs $5,000
Model Complexity The larger the base model, the higher the fine-tuning cost. 13-billion parameter model Higher


Cost-calculation-for-lllm    Llm-costing    Slide1    Slide2   

Dataknobs Blog

Showcase: 10 Production Use Cases

10 Use Cases Built By Dataknobs

Dataknobs delivers real, shipped outcomes across finance, healthcare, real estate, e‑commerce, and more—powered by GenAI, Agentic workflows, and classic ML. Explore detailed walk‑throughs of projects like Earnings Call Insights, E‑commerce Analytics with GenAI, Financial Planner AI, Kreatebots, Kreate Websites, Kreate CMS, Travel Agent Website, and Real Estate Agent tools.

Data Product Approach

Why Build Data Products

Companies should build data products because they transform raw data into actionable, reusable assets that directly drive business outcomes. Instead of treating data as a byproduct of operations, a data product approach emphasizes usability, governance, and value creation. Ultimately, they turn data from a cost center into a growth engine, unlocking compounding value across every function of the enterprise.

AI Agent for Business Analysis

Analyze reports, dashboard and determine To-do

Our structured‑data analysis agent connects to CSVs, SQL, and APIs; auto‑detects schemas; and standardizes formats. It finds trends, anomalies, correlations, and revenue opportunities using statistics, heuristics, and LLM reasoning. The output is crisp: prioritized insights and an action‑ready To‑Do list for operators and analysts.

AI Agent Tutorial

Agent AI Tutorial

Dive into slides and a hands‑on guide to agentic systems—perception, planning, memory, and action. Learn how agents coordinate tools, adapt via feedback, and make decisions in dynamic environments for automation, assistants, and robotics.

Build Data Products

How Dataknobs help in building data products

GenAI and Agentic AI accelerate data‑product development: generate synthetic data, enrich datasets, summarize and reason over large corpora, and automate reporting. Use them to detect anomalies, surface drivers, and power predictive models—while keeping humans in the loop for control and safety.

KreateHub

Create New knowledge with Prompt library

KreateHub turns prompts into reusable knowledge assets—experiment, track variants, and compose chains that transform raw data into decisions. It’s your workspace for rapid iteration, governance, and measurable impact.

Build Budget Plan for GenAI

CIO Guide to create GenAI Budget for 2025

A pragmatic playbook for CIOs/CTOs: scope the stack, forecast usage, model costs, and sequence investments across infra, safety, and business use cases. Apply the framework to IT first, then scale to enterprise functions.

RAG for Unstructured & Structured Data

RAG Use Cases and Implementation

Explore practical RAG patterns: unstructured corpora, tabular/SQL retrieval, and guardrails for accuracy and compliance. Implementation notes included.

Why knobs matter

Knobs are levers using which you manage output

The Drivetrain approach frames product building in four steps; “knobs” are the controllable inputs that move outcomes. Design clear metrics, expose the right levers, and iterate—control leads to compounding impact.

Our Products

KreateBots

  • Ready-to-use front-end—configure in minutes
  • Admin dashboard for full chatbot control
  • Integrated prompt management system
  • Personalization and memory modules
  • Conversation tracking and analytics
  • Continuous feedback learning loop
  • Deploy across GCP, Azure, or AWS
  • Add Retrieval-Augmented Generation (RAG) in seconds
  • Auto-generate FAQs for user queries
  • KreateWebsites

  • Build SEO-optimized sites powered by LLMs
  • Host on Azure, GCP, or AWS
  • Intelligent AI website designer
  • Agent-assisted website generation
  • End-to-end content automation
  • Content management for AI-driven websites
  • Available as SaaS or managed solution
  • Listed on Azure Marketplace
  • Kreate CMS

  • Purpose-built CMS for AI content pipelines
  • Track provenance for AI vs human edits
  • Monitor lineage and version history
  • Identify all pages using specific content
  • Remove or update AI-generated assets safely
  • Generate Slides

  • Instant slide decks from natural language prompts
  • Convert slides into interactive webpages
  • Optimize presentation pages for SEO
  • Content Compass

  • Auto-generate articles and blogs
  • Create and embed matching visuals
  • Link related topics for SEO ranking
  • AI-driven topic and content recommendations