Let’s compare how much you can save on local storage vs cloud storage. Just give this tool your input and see the results.
Cloud vs. Local Storage Cost Calculator
This is a simple tool that allows you to enter the total monthly cost of your cloud provider vs. the one-time investment that you make in your local storage setup. There are some obvious benefits of both. Cloud services have ease-of-use while local storage gives you peace of mind at a lesser cost.
This tool will give you the amortized cost of your local storage along with the effective mostly cost. Also, you will get a break-even point after which the local storage will become cheaper than the cloud. Let’s understand the inputs properly.
Using the calculator
Cloud Monthly Subscription Cost ($)
Recurring monthly payment for cloud storage service
Where to find:
- Provider’s pricing page (AWS S3, Google Cloud Storage, Azure Blob Storage, Dropbox, etc.)
- Current invoice/billing statement
- Quote from the sales representative
Example: $0.023/GB/month for AWS S3 Standard Storage
Number of Months
What it is: Duration you plan to use the cloud storage
Considerations:
Contract length (monthly vs annual commitment)
Project duration
Expected usage period
Typical Values: 12-36 months for comparison with hardware lifespan
Local Storage Inputs
What is the Upfront cost:
- Hardware costs (NAS, servers, HDDs/SSDs)
- Installation/setup costs
- Network infrastructure (if needed)
- Backup systems (RAID controllers, UPS)
Where to find:
- Vendor quotes (Dell, HP, Synology, etc.)
- Retail prices (Newegg, Amazon, B&H)
- IT department estimates
Expected Lifespan (Months)
How long will the hardware remain usable? The manufacturer warranty period is usually between 3 to 5 years for SSDs and Hard drives. You can also check the TBW or MTBF ratings to understand how long your SSD can last.
Understanding the Results
First of all, you’ll see a bar graph comparing the pricing. You can understand it pretty simply in this way:
- If the blue (cloud) bar is taller → Cloud is more expensive in this scenario
- If the green (local) bar is taller → Local has a higher effective cost.
The breakeven point will only appear if local becomes cheaper over time. For example, a break-even at 18 months means that the cloud will be cheaper within the first 1.5 years and then the local becomes cheaper.
How to Interpret Results?
Short-Term vs Long-Term
- Cloud Wins Short-Term: If results show lower cloud costs → Better for projects <3 years
- Local Wins Long-Term: If local amortized cost is lower → Better for > 5-year use
Note: You should also keep the hidden costs in mind like the data retrieval fees and API request charges from the cloud provider. In the local storage, some hidden costs are IT maintenance, cooling, and electricity.
Understand your scalability needs as well.