๐Ÿ“‰Cost Optimization

How Much Does OpenClaw Cost to Run?

Beginner15 minutesUpdated 2025-03-01

OpenClaw itself is free and open source, but running it has real costs: infrastructure to host it, and API fees every time it calls an LLM provider like Anthropic or OpenAI. Many teams are surprised when their first month's bill arrives โ€” especially if they haven't tracked variable usage patterns or hidden API costs. This guide breaks down every component so you can budget accurately.

Why This Is Hard to Do Yourself

These are the common pitfalls that trip people up.

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Hidden API costs

You budget for hosting but forget that every conversation costs tokens. Heavy users can rack up hundreds of dollars per month in API fees.

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Variable usage patterns

Usage fluctuates wildly. One automation project can 10x your API spend in a week, blowing your budget.

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Hosting costs vary wildly

Running OpenClaw on your laptop is free. Running it on a cloud server with GPU access for local models costs $500+/month.

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No single pricing page

OpenClaw has no pricing. LLM providers have complex tiered pricing. Hosting providers charge by the hour. You have to piece it together yourself.

Step-by-Step Guide

Step 1

Understand OpenClaw is free (open source)

No license fees, ever.

# OpenClaw is MIT-licensed open source software:
# https://github.com/openclaw/openclaw

# Cost breakdown:
โœ… OpenClaw software: $0
โœ… Installation: $0
โœ… Updates and patches: $0
โœ… No per-user fees: $0
โœ… No subscription: $0

# You pay for:
โŒ Hosting (if cloud-based)
โŒ API provider fees (Anthropic, OpenAI, etc.)
โŒ Your time to set up and maintain it

Warning: OpenClaw is free, but running it is not. Budget for hosting and API costs before deploying.

Step 2

Estimate hosting costs (local vs cloud)

Where you run OpenClaw affects monthly costs.

# Option 1: Local (your machine)
# Cost: $0/month (electricity negligible)
# Pros: Free, full control, no data leaves your network
# Cons: Only available when your machine is on, no remote access

# Option 2: Cloud VPS (DigitalOcean, AWS EC2, etc.)
# Cost: $12-50/month for basic setup
# - DigitalOcean Droplet (2 vCPU, 4GB RAM): ~$24/month
# - AWS t3.medium (2 vCPU, 4GB RAM): ~$30/month
# - Hetzner CX21 (2 vCPU, 4GB RAM): ~$6/month
# Pros: Always on, remote access, scalable
# Cons: Ongoing monthly fee

# Option 3: GPU-enabled for local models (optional)
# Cost: $300-1000/month if you want to run local LLMs
# - AWS p3.2xlarge (1 V100 GPU): ~$3/hour (~$2200/month if always on)
# - RunPod H100 GPU instance: ~$2.50/hour (~$1800/month)
# Pros: Run models locally, no per-token API fees
# Cons: Very expensive, complex setup, often slower than APIs

# Recommendation for most teams:
# Start local for testing ($0), move to cloud VPS for production ($20-30/month).
Step 3

Estimate API provider costs

LLM API fees are your biggest variable cost.

# API pricing (as of early 2025):
# Anthropic Claude 3.5 Sonnet:
# - Input: $3 per 1M tokens
# - Output: $15 per 1M tokens

# OpenAI GPT-4o:
# - Input: $2.50 per 1M tokens
# - Output: $10 per 1M tokens

# Example cost per conversation:
# - Typical conversation: 5,000 input tokens, 1,500 output tokens
# - Claude Sonnet cost: (5000 ร— $3/1M) + (1500 ร— $15/1M) = $0.015 + $0.0225 = $0.0375 per conversation
# - ~27 conversations per $1
# - 1,000 conversations/month = ~$37.50/month

# Heavy usage example (power user):
# - 100 conversations/day ร— 30 days = 3,000 conversations/month
# - 3,000 ร— $0.0375 = $112.50/month per power user

# Team of 10 with mixed usage:
# - 5 light users (100 conversations/month each): $18.75
# - 3 medium users (500 conversations/month each): $56.25
# - 2 power users (3,000 conversations/month each): $225
# Total: ~$300/month in API costs

Warning: API costs scale with usage. Monitor token consumption weekly to avoid surprise bills.

Step 4

Calculate per-conversation cost

Know what each interaction costs you.

# Simple per-conversation cost formula:
per_conversation_cost = (avg_input_tokens ร— input_price_per_token) + (avg_output_tokens ร— output_price_per_token)

# Example with Claude Sonnet:
# - Average input: 5,000 tokens
# - Average output: 1,500 tokens
# - Input price: $3 per 1M tokens = $0.000003 per token
# - Output price: $15 per 1M tokens = $0.000015 per token

# Calculation:
(5000 ร— 0.000003) + (1500 ร— 0.000015) = $0.015 + $0.0225 = $0.0375 per conversation

# To find your actual average:
# 1. Run OpenClaw for a week
# 2. Check provider dashboard for total tokens used
# 3. Divide by number of conversations
# 4. Use that average for future budgeting

Warning: Track your first month's usage without limits to establish baseline costs, then set budgets at 120% of observed usage.

Step 5

Set up spending alerts

Get notified before costs spiral.

# Anthropic Console (console.anthropic.com):
# Settings โ†’ Billing โ†’ Usage Alerts
# - Set alert at $50, $100, $200, etc.
# - Email notifications when threshold crossed

# OpenAI Dashboard (platform.openai.com):
# Settings โ†’ Limits โ†’ Usage Limits
# - Set hard limit (stops API calls when reached)
# - Set soft limit (sends email warning)

# CloudWatch (if using AWS):
# Create billing alarm:
aws cloudwatch put-metric-alarm \
  --alarm-name "OpenClaw-API-Cost-Alert" \
  --alarm-description "Alert when API costs exceed $100" \
  --metric-name EstimatedCharges \
  --namespace AWS/Billing \
  --statistic Maximum \
  --period 21600 \
  --evaluation-periods 1 \
  --threshold 100 \
  --comparison-operator GreaterThanThreshold

Warning: Set multiple alert thresholds (e.g., 50%, 75%, 90% of budget) to catch runaway costs early.

Step 6

Optimize for your budget

Adjust usage to fit your spend limit.

# Budget optimization strategies:

# 1. Use cheaper models for simple tasks:
# - Route simple queries to Claude Haiku ($0.25/$1.25 per 1M tokens)
# - Reserve Sonnet/Opus for complex reasoning

# 2. Set per-user token budgets:
# - Daily limit: 50,000 tokens per user
# - Monthly limit: 1M tokens per user
# - Prevents one power user from burning entire budget

# 3. Cache repeated content:
# - Use Anthropic's prompt caching (90% cost reduction for cached tokens)
# - Cache system prompts, context documents, etc.

# 4. Compress context:
# - Summarize long documents before feeding to LLM
# - Remove redundant information from prompts

# 5. Monitor and adjust:
# - Review usage weekly
# - Identify expensive queries
# - Optimize or restrict them

# Example monthly budget allocation (team of 10, $200/month total):
# - Hosting (cloud VPS): $30
# - API costs: $170
# - Per-user limit: $17/month (170 / 10 users)
# - Daily per-user: ~450 conversations at $0.0375 each

Need a Cost Estimate for Your Use Case?

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