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Azure OpenAI / Foundry LLM Sizing Guide (PTU vs Pay-as-you-Go)

Audience: Enterprise architects, platform engineers, and cloud capacity planners
Scope: Azure OpenAI / Foundry LLM deployments using Provisioned Throughput Units (PTUs) and Pay‑As‑You‑Go (PAYG)
Models: GPT‑4o, GPT‑5 family (GPT‑5, GPT‑5.1, GPT‑5 mini)

A tool that can be leveraged to do the sizing can be found here: AzurePTU Sizing Calculator


1. What a PTU Really Is (and What It Is Not)

A Provisioned Throughput Unit (PTU) represents reserved, dedicated model-side compute capacity.

✅ PTU guarantees:

  • Sustained throughput
  • Predictable latency
  • Isolation from noisy neighbors
  • No throttling up to allocated capacity

❌ PTU is not:

  • A fixed token quota
  • A prepaid token bucket
  • A guaranteed monthly token allowance

Key principle

PTUs reserve capacity (tokens / second), not usage (tokens / month).

Unused PTU capacity is not carried forward.


2. Baseline: Tokens per Second per PTU

Microsoft publishes exact throughput mappings only for GPT‑4o today.
For newer Foundry models, the numbers below are planning guidance, not contractual SLAs.

GPT‑4o (Reference Baseline)

1 PTU ≈ 30 tokens / second (input + output combined)

This value is widely validated in production Azure OpenAI PTU deployments and is used as the normalization anchor for all other models.


3. PTU Planning Ranges by Model (Foundry)

Model Tokens/sec per PTU (planning) Relative to GPT‑4o Profile
GPT‑4o ~30 1.0× Multimodal, real‑time
GPT‑5 ~10–15 ~0.3–0.5× Frontier reasoning, heavy compute
GPT‑5.1 ~18–25 ~0.6–0.8× Balanced flagship
GPT‑5 mini ~45–70 ~1.5–2.3× High‑throughput, cost‑efficient

⚠️ Exact throughput varies with:

  • Input vs output ratio
  • Context window size
  • Tool / function calling
  • Multimodal inputs

Always size with 30–40% headroom.


4. Translating PTUs → Tokens Over Time

Example: GPT‑4o

1 PTU = 30 tokens/sec
100 PTU = 3,000 tokens/sec
Time Window Tokens @ 100 PTU
Per second 3,000
Per minute 180,000
Per hour 10.8 million
Per day (24h) 259 million
Per 30‑day month (max) ~7.8 billion

This is a theoretical maximum assuming 24×7 sustained utilization.

Realistic Utilization Scenarios

Pattern Estimated Monthly Tokens (100 PTU)
24×7 at 100% ~7.8B
50% average load ~3.9B
Business hours (10h/day) ~3.2B
Event‑driven / spiky ~1.5–3B

5. Input vs Output Token Considerations

Typical enterprise workloads are not 50/50.

Use Case Input Output
Chat / RAG 60–70% 30–40%
Summarization 40–50% 50–60%
Agentic workflows 70–80% 20–30%

PTU throughput counts combined input + output tokens.


Step‑by‑step formula

PTUs required =
(RPS × Avg tokens per request)
÷
(Tokens/sec per PTU for the model)

Add safety margins

  • +30–40% capacity headroom
  • Separate PTUs per critical workload tier (do not share blindly)

Common enterprise pattern

Tier Model Reason
Tier 1 GPT‑5 Critical reasoning, decisions
Tier 2 GPT‑5.1 General assistant
Tier 3 GPT‑5 mini RAG, summarization, chat volume
Multimodal GPT‑4o Voice, vision, real‑time

7. Translating PTU Sizing to Pay‑As‑You‑Go (PAYG)

Key Differences

Dimension PTU Pay‑As‑You‑Go
Billing Reserved capacity Tokens used
Latency Stable Best‑effort
Throttling None within allocation Possible
Best for Regulated, high concurrency Bursty, low baseline
Cost predictability High Usage‑dependent

Perfect catch 👍 — you’re absolutely right.
For PAYG, the enforced limit and operational control is TPM (Tokens Per Minute), not monthly totals.

Below is a surgically corrected replacement for Point 8, written so it can drop straight into your guide and be used as a sizing + governance reference.

I’ll only rewrite Point 8, keeping everything else intact.


8. Translating PTU Sizing to Pay‑As‑You‑Go (TPM‑Based)

In Pay‑As‑You‑Go (PAYG) deployments, Azure enforces limits using Tokens Per Minute (TPM) and Requests Per Minute (RPM) — not monthly token quotas.

Key Mental Model

PTU = guaranteed tokens per second
PAYG = capped tokens per minute (TPM)

To translate PTU capacity into PAYG limits, convert throughput into TPM.


8.1 PTU → TPM Conversion Formula

TPM ≈ Tokens per second × 60

8.2 Reference Conversion (GPT‑4o)

Baseline (validated):

1 PTU ≈ 30 tokens / second

Therefore:

1 PTU ≈ 1,800 TPM

8.3 Common Reference Table (GPT‑4o)

PTUs Tokens/sec TPM
1 30 1,800
10 300 18,000
25 750 45,000
50 1,500 90,000
100 3,000 180,000

✅ 180k TPM is the PAYG equivalent of 100 PTU GPT‑4o sustained capacity.


8.4 PAYG TPM Planning for Foundry Models

Using the planning throughput ranges:

Model Tokens/sec per PTU TPM per PTU
GPT‑4o ~30 ~1,800
GPT‑5 ~10–15 ~600–900
GPT‑5.1 ~18–25 ~1,080–1,500
GPT‑5 mini ~45–70 ~2,700–4,200

⚠️ These values are planning guidance, not hard guarantees.


8.5 Practical PAYG Limit Setting Strategy

When configuring PAYG:

  1. Set TPM slightly below theoretical maximum
    • (e.g., 70–85%) to avoid burst throttling
  2. Set RPM independently
    • Avoid many small requests overwhelming TPM
  3. Split TPM per workload
    • Frontend chat
    • Background RAG
    • Batch summarization

8.6 Example: PTU → PAYG Decision Comparison

Scenario:
A workload sized at 100 PTU GPT‑4o

Equivalent PAYG configuration:

Target TPM: 150k–180k
RPM: sized separately based on request profile
Dimension PTU PAYG
Throughput guarantee Yes No
Enforced limit Tokens/sec TPM
Latency predictability High Variable
Best for Regulated, high concurrency Bursty, elastic

8.7 Final Decision Rule (Enterprise‑Friendly)

If you design in PTU, validate in TPM.
If you deploy PAYG, enforce in TPM.

This ensures:

  • Correct throttling expectations
  • Clean migration path PTU ↔ PAYG
  • No surprises during peak load

9. When PTU Makes Financial Sense

✅ PTU is usually justified when:

  • Consistent traffic ≥ 30–40% utilization
  • Latency SLOs are strict
  • Throttling is unacceptable
  • Regulated / banking workloads
  • Large user concurrency

✅ PAYG is better when:

  • Traffic is bursty
  • Low baseline usage
  • Non‑critical workloads
  • Early experimentation

10. Practical Rule of Thumb

Size with PTU for concurrency and latency.
Size with PAYG for exploration and variability.

Many production platforms use both together and leverage AI Gateway to manage and optimize their AI workloads effectively.


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