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LLM Error Rate

Usage OptimizationAnomaly ManagementReporting & AnalyticsKPIs & BenchmarkingAI

Definition

Measures the error rate for failed LLM calls. This is a direct proxy for retry waste since tokens are still consumed. A high error rate signals an optimization opportunity for FinOps Practitioner and Engineering Personas .

Formula, as published

LLM Error Rate = Failed LLM Spans / Total LLM Spans x 100

Where:
A “span” is a granular monitoring technique that breaks down an agent’s execution into specific internal segments that can be used to track the multiple-reasoning steps used by an agent. It is the building block of a trace.

Calculate it

Example values to start with; replace them with yours.

LLM error rate
1.5%

From the FinOps Foundation

All 88 FinOps KPIs, and a scorecard for your billing file

Definition and formula: LLM Error Rate, FinOps KPI library, FinOps Foundation, licensed CC BY 4.0, read 16 Oct 2026. Changed: HTML removed, dashes and British spellings changed, formula split from its data sources and examples. The calculator and the notes are Finitizer’s.

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