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A local LLM is not free; it trades a per-token API bill for a mostly fixed monthly cost. This reproducible break-even model loads both columns (hardware, electricity, and token volume) and shows exactly where local stops costing more than the API.
The credential test fails because n8n looks inside its container, not at Ollama on your host. This guide shows the exact Base URL for every setup: native, Docker Desktop, and Linux server.
Running a local LLM cuts your AI API bill to $0 and keeps client data off third-party servers. This breakdown of Ollama, LM Studio, and Jan tells you exactly which tool fits a solo operator's workflow.
