| Tool | Local Use | Paid Tiers | Best For |
|---|---|---|---|
| Ollama | Free, unlimited, no subscription required | Pro $20/mo, Max $100/mo, Team $500/mo (early access), Enterprise custom — all for optional cloud/hosted model access | Developers who want a scriptable local-model runtime with an optional cloud tier |
| LM Studio | Free, includes local models via llama.cpp/MLX and the Bionic agent | Bionic+ $20/mo, Pro $100/mo, Teams custom — for hosted models and expanded web search | Users who want a polished GUI plus an agent that can also reach hosted models |
| Jan | Free and open source, full stop | None required — can optionally connect your own API keys for ChatGPT, Claude, or Gemini | Users who want a fully open-source app with no paid tier at all |
Short Verdict
Running an open model on your own machine is free with all three tools — that part of the pitch holds up. Where they diverge is what you get if you want more than your laptop’s GPU can deliver. Ollama is the developer-first, CLI-and-API-driven runtime with optional paid cloud tiers layered on top for access to larger hosted models. LM Studio wraps the same core idea (llama.cpp and MLX under the hood) in a more consumer-facing GUI and its own Bionic agent, with its own paid cloud add-ons. Jan is the purist’s choice: free and open source with no subscription tier published at all, though it can optionally call out to paid hosted APIs (ChatGPT, Claude, Gemini) if you bring your own key.
What Each Tool Actually Is
Ollama
Ollama is a command-line-first tool (with a GitHub repo carrying over 186,000 stars) for pulling and running open models locally on macOS, Windows, and Linux, with a simple REST API that’s become a de facto standard other tools build against. Running models locally has no subscription cost and is, per Ollama’s own pricing page, “always unlimited.” On top of that free local runtime, Ollama sells optional cloud tiers: Pay-as-you-go ($0 base, pay per token for cloud-hosted models), Pro ($20/month, $60 in monthly usage credits, access to larger Pro models), Max ($100/month, $300 in credits), and Team ($500/month early-access price, unlimited users, $1,000 in shared credits), plus a custom Enterprise tier.
LM Studio
LM Studio packages local-model running behind a desktop GUI, built on llama.cpp and MLX runtimes, and now centers its pitch on “Bionic,” its agent for working with open models on agentic tasks. The Free tier ($0) includes the Bionic agent, local models, offline voice transcription, and device linking across up to five devices, with limited web search. Bionic+ ($20/month) adds US-hosted open-source models, discounted bulk tokens, and full web search with page extraction. Pro ($100/month) adds five-times the usage limits and early feature access. A Teams tier offers centralized, pooled or seat-based billing with no published price.
Jan
Jan describes itself as “Free & open source” and positions itself as an open alternative to ChatGPT: a desktop app that runs open models locally or, if you supply your own API key, connects out to hosted models from OpenAI, Anthropic, or Google. There’s no subscription tier on Jan’s own side — any cost you incur comes from the API keys you bring, not from Jan itself.
Trade-offs
- Ollama is the closest thing to an industry-standard local-model API, which matters if you’re wiring it into other tools, but its cloud tiers (Pro/Max/Team) exist specifically to get you off your own hardware for bigger models — read the fine print before assuming “local” and “free” always go together once you touch those tiers.
- LM Studio has arguably the most polished GUI of the three and bundles an agent experience, but its free tier’s web search is explicitly “limited,” with full search gated behind the $20/month Bionic+ tier.
- Jan has no paid tier to evaluate at all, which simplifies the decision, but also means less corporate backing behind features like a managed cloud-hosting option — you’re more on your own for infrastructure beyond your local machine.
Who It’s a Good Fit For
Ollama fits developers who want a scriptable, API-first local runtime they can build other tools on top of, with an optional paid cloud escape hatch for bigger models. LM Studio fits users who want a friendlier GUI and an agent experience out of the box, and who don’t mind paying for expanded web search and hosted models. Jan fits anyone who wants a fully open-source app with zero subscription pressure, especially if they’re comfortable bringing their own API keys for occasional hosted-model use.
Bottom Line
All three are free to start and genuinely useful for running open models on your own hardware. Pick Ollama if you’re building on top of it programmatically, LM Studio if you want the most polished all-in-one GUI and agent, and Jan if you want to stay entirely within open-source tooling with no paid tier in the picture.
FAQ
Do I need to pay to run models locally with any of these?
No. Local model execution is free with Ollama, LM Studio, and Jan. Paid tiers on Ollama and LM Studio apply only to optional cloud-hosted models and expanded features, not to running open models on your own hardware.
Is Ollama open source?
Ollama’s client is distributed via a public GitHub repository (github.com/ollama/ollama) with over 186,000 stars; check that repository directly for its current license terms before relying on a specific license for commercial use.
Can Jan connect to Claude or ChatGPT instead of a local model?
Yes. Jan can connect to hosted models including ChatGPT, Claude, and Gemini if you provide your own API key for those services; Jan itself charges nothing for this.
Sources
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