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Estimate an LLM’s weight memory first, then budget separately for its KV cache, activations, and other runtime allocations. To estimate inference cost, combine the current price of the deployment with throughput measured on the model and workload you actually plan to serve. A parameter-count calculation is a useful starting point—not proof that a model will fit or a prediction of its cost per token.

How to estimate the model’s GPU memory

For a first-pass estimate of weight memory on each GPU, use:

Estimated weight memory per GPU = parameter count × bytes per parameter ÷ tensor-parallel degree

Use the precision or quantization format actually used by the checkpoint and runtime. NVIDIA’s versioned NIM 2.0.13 guide, accessed in 2026, gives these bytes-per-parameter estimates:

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Weight format Estimated bytes per parameter
BF16 or FP16 2
FP8 1
INT4 or NVFP4 0.5

These are planning figures, not an exact prediction of checkpoint size or allocated VRAM. Metadata, quantization scales, unquantized layers, and packing can make the real memory use differ from simple multiplication. Sharding also depends on the actual parallelism and implementation; dividing evenly by tensor-parallel degree is an initial estimate, not a guarantee that every component will be distributed equally.

Worked weight-memory estimates

Model and format Calculation Estimated weight memory Source and qualification
Llama 3.1 8B, BF16, TP=1 8 billion × 2 bytes ÷ 1 16 GB total NVIDIA NIM 2.0.13 sizing estimate, accessed in 2026
Llama 3.3 70B, BF16, TP=4 70 billion × 2 bytes ÷ 4 35 GB per GPU NVIDIA NIM 2.0.13 sizing estimate, accessed in 2026
Llama 3.3 70B, FP8, TP=2 70 billion × 1 byte ÷ 2 35 GB per GPU NVIDIA NIM 2.0.13 sizing estimate, accessed in 2026

NVIDIA’s guide uses a 24 GB GPU, including an RTX 4090, as an example that can hold the estimated 16 GB of weights for Llama 3.1 8B in BF16, leaving capacity for cache and overhead. That is an illustrative weight estimate, not a guarantee for a particular context length, concurrency level, model revision, or runtime.

Keep units in view when matching estimates to hardware. Vendor figures may use decimal GB while tools report GiB. Do not size a GPU exactly to a rounded weights-only estimate and assume the remaining capacity will cover runtime needs.

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What else uses memory during inference?

Weights are only one part of the runtime budget. TensorRT-LLM identifies weights, activations, and I/O tensors—especially the KV cache—as major memory contributors. NVIDIA’s NIM guidance also calls out communication buffers, CUDA graphs, adapters, and multimodal reservations where applicable. The allocation order and accounting can vary by backend version and model.

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  • KV cache: Stores keys and values for prior tokens so they do not need to be recomputed. It grows with tokens in use; longer contexts and more simultaneous sequences increase its demand.
  • Activations: Intermediate tensors used during inference. Their peak memory depends on the workload and engine configuration.
  • Communication and runtime buffers: Additional allocations associated with parallel execution and the serving engine.
  • Graph capture and model-specific reservations: CUDA graphs, adapters, or multimodal state can add memory requirements when used.

There is no reliable universal KV-cache figure that can be derived from parameter count alone. Cache demand depends on architecture and attention structure, cache precision, context, concurrency, and serving-engine behavior. A model may load successfully yet fail when a request asks for a context or cache allocation the available memory cannot support.

Estimate memory for your actual workload

  1. Identify the exact model and checkpoint. Record its parameter count, architecture, revision, and checkpoint metadata. A family name alone does not establish the exact memory requirement.
  2. Confirm the deployed weight format. Apply the precision or quantization used by the checkpoint and runtime, rather than assuming the format from the model name.
  3. Map the real device topology. Use tensor-parallel degree as a first-pass divisor for weights, then check how the selected implementation distributes memory across devices.
  4. Set workload limits. Specify maximum input or context length, output length, batch size or concurrency, and latency target. In TensorRT-LLM, activation memory depends on maximum shapes and build-time limits such as batch and token counts, so configured maxima can use capacity even when typical requests are smaller.
  5. Measure the runtime allocation. Inspect startup logs and allocator measurements for the selected model, engine, version, and configuration. Include cache, peak activations, buffers, graph capture, and applicable adapters or multimodal state.
  6. Leave headroom and validate under load. Treat the engine’s memory-utilization setting as a budget control, not extra physical memory. vLLM warns that increasing its reservation can increase KV-cache capacity but can also cause an out-of-memory failure.

Compare the measured allocation with usable GPU memory under the same setup and representative request mix. An estimate helps narrow hardware choices; only validation on the intended engine and configuration can establish whether the target workload fits.

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How to estimate inference cost per token

First distinguish infrastructure billed over time from services billed by token. For a self-hosted or rented GPU, a basic measured output-token calculation is:

Cost per generated token = compute charges during the measurement interval ÷ generated output tokens during that interval

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Dollars per million generated tokens = cost per generated token × 1,000,000

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Measure the charges and output tokens over the same interval. State what the charges include—such as GPU instance, CPU, RAM, storage, network, idle time, replicas, discounts, and operational overhead—so the result is interpretable. If input processing matters to the workload, report input and output token volumes separately rather than blending them into one rate.

Choose the calculation that matches the billing model

Deployment model What to use What the result depends on
Self-hosted or rented GPU Compute charges over a measured interval divided by output tokens generated in that interval Billable instance or GPU rate, billing interval, useful throughput, utilization, and which infrastructure costs are included
Managed endpoint billed over time Provider’s published rate × duration × number of replicas, when that is the provider’s documented method Current rate, replica count, duration, region, and billing terms. Hugging Face documents this rate-times-duration-times-replicas approach and says its displayed hourly endpoint rates are billed per minute.
Dedicated inference billed by GPU-hour GPU-hours charged, combined with measured workload throughput for a cost-per-token estimate Current provider price and the output volume served during billable GPU time. DigitalOcean describes dedicated inference billing per GPU-hour.
Managed API billed by tokens Current provider rate applied to the actual billed input and output token counts Provider, model, billing unit, input/output mix, and the applicable current rate

These are examples of pricing models, not universal billing terms. Use the provider’s current published price and billing unit for the deployment under consideration.

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Benchmark before comparing deployments

An hourly GPU price does not determine cost per token by itself. Measure useful throughput on the intended model, precision, serving engine, prompt and output lengths, concurrency, and latency target. Then calculate cost using the charges and token counts from that representative run. A faster configuration may not be cheaper if it costs more per hour, and a low hourly price may not be economical if utilization or throughput is poor.

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NVIDIA’s 2024 LLM Inference Sizing presentation says, in the context it evaluated, that “The cost and the latency are usually dominated by the number of output tokens.” Treat that as context-specific rather than a universal rule: long prompts, low utilization, strict time-to-first-token or inter-token latency targets, batching, and concurrency can change the economics. Latency constraints can also lower throughput.

For a fair comparison, hold the model revision and quality level constant, and evaluate:

  • Usable VRAM against the combined weights, cache, activation, and runtime budget.
  • Weight and KV-cache precision, including any quality impact that must be evaluated for the task.
  • Maximum context and concurrent requests at the required latency.
  • Measured input and output throughput under the chosen batching and scheduling configuration.
  • Cost per request or per million input and output tokens at realistic utilization.
  • Region, availability, billing granularity, commitment or interruptibility, and additional instance charges.

Cloud pricing and availability can change. AWS says Capacity Blocks rates are updated with supply and demand. When publishing or planning a cost figure, identify the provider, region, instance configuration, GPU count, operating system, reservation, spot, or on-demand billing type, and verification date.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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