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How Much GPU Do You Actually Need to Self-Host an LLM?

The first question every team asks about running AI on their own hardware is some version of “what GPU do we need?” — and the honest answer is: it depends on three things you can write down before buying anything. Here’s the actual math.

The core formula

Model weights are the dominant cost. At a given precision, memory need is roughly:

VRAM ≈ parameters × bytes-per-weight + KV cache + overhead

Bytes per weight by precision:

PrecisionBytes/weightQuality
FP162.0Reference
8-bit (Q8)~1.05Near-lossless
5-bit (Q5)~0.65Very good
4-bit (Q4)~0.55Good — the sweet spot for most
3-bit and below<0.45Noticeable degradation

So a 27B parameter model at Q4 needs roughly 27 × 0.55 ≈ 15 GB just for weights.

Context isn’t free

Every token of conversation history lives in the KV cache, and its size scales with model architecture and sequence length. Practical rule of thumb: budget 1–4 GB for 32k–128k context depending on model and whether you use quantized KV cache (q8_0 KV is nearly free quality-wise and halves that).

This is where most DIY deployments go wrong: they size the GPU to the weights and then hit out-of-memory at long contexts or under concurrent users.

Concurrency multiplies everything

Worked examples (2026 hardware)

The decision shortcut

  1. Write down the biggest model class you’d accept (e.g., “27B-class is fine”).
  2. Add your max context × expected concurrent users.
  3. Pick hardware with ~20% headroom over the total.

If step 2 pushes past your budget, quantization, shorter contexts, or a hybrid setup (local for most traffic, cloud burst for peaks) usually closes the gap far cheaper than the next GPU tier.


Sizing this for a real workload — data sensitivity, user counts, latency targets — is exactly what our on-premises LLM deployment service covers. Get in touch for a requirements assessment.

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