diff --git a/cmd/jobs/entitlement/recalculatesnapshots.go b/cmd/jobs/entitlement/recalculatesnapshots.go
index 09e4705d7..f243b8edc 100644
--- a/cmd/jobs/entitlement/recalculatesnapshots.go
+++ b/cmd/jobs/entitlement/recalculatesnapshots.go
@@ -26,11 +26,13 @@ func NewRecalculateBalanceSnapshotsCommand() *cobra.Command {
 
 			logger := slog.Default()
 
+			metricMeter := otel.GetMeterProvider().Meter(otelNameRecalculateBalanceSnapshot)
+
 			entitlementConnectors, err := initEntitlements(
 				cmd.Context(),
 				conf,
 				logger,
-				otel.GetMeterProvider().Meter(otelNameRecalculateBalanceSnapshot),
+				metricMeter,
 				otelNameRecalculateBalanceSnapshot,
 			)
 			if err != nil {
@@ -43,6 +45,7 @@ func NewRecalculateBalanceSnapshotsCommand() *cobra.Command {
 				Entitlement: entitlementConnectors.Registry,
 				Namespace:   "default",
 				EventBus:    entitlementConnectors.EventBus,
+				MetricMeter: metricMeter,
 			})
 			if err != nil {
 				return err
diff --git a/openmeter/entitlement/balanceworker/recalculate.go b/openmeter/entitlement/balanceworker/recalculate.go
index 3d9cd7ab9..acfc77437 100644
--- a/openmeter/entitlement/balanceworker/recalculate.go
+++ b/openmeter/entitlement/balanceworker/recalculate.go
@@ -7,6 +7,8 @@ import (
 	"time"
 
 	lru "github.com/hashicorp/golang-lru/v2"
+	"go.opentelemetry.io/otel/attribute"
+	"go.opentelemetry.io/otel/metric"
 
 	"github.com/openmeterio/openmeter/openmeter/entitlement"
 	entitlementdriver "github.com/openmeterio/openmeter/openmeter/entitlement/driver"
@@ -26,6 +28,17 @@ const (
 	DefaultIncludeDeletedDuration = 24 * time.Hour
 
 	defaultLRUCacheSize = 10_000
+
+	metricNameRecalculationTime = "balance_worker_entitlement_recalculation_time"
+)
+
+var (
+	// metricRecalculationBuckets are the default buckets for the recalculation time histogram. It is geared towards
+	// representing smaller values.
+	metricRecalculationBuckets = []float64{0.001, 0.005, 0.01, 0.02, 0.05, 0.075, 0.1, 0.2, 0.5, 1, 5, 10, 30, 60}
+
+	recalculationTimeUpdateAttribute = attribute.String("operation", "update")
+	recalculationTimeDeleteAttribute = attribute.String("operation", "delete")
 )
 
 type RecalculatorOptions struct {
@@ -33,6 +46,27 @@ type RecalculatorOptions struct {
 	Namespace       string
 	SubjectResolver SubjectResolver
 	EventBus        eventbus.Publisher
+	MetricMeter     metric.Meter
+}
+
+func (o RecalculatorOptions) Validate() error {
+	if o.Entitlement == nil {
+		return errors.New("missing entitlement registry")
+	}
+
+	if o.Namespace == "" {
+		return errors.New("missing namespace")
+	}
+
+	if o.EventBus == nil {
+		return errors.New("missing event bus")
+	}
+
+	if o.MetricMeter == nil {
+		return errors.New("missing metric meter")
+	}
+
+	return nil
 }
 
 type Recalculator struct {
@@ -40,9 +74,15 @@ type Recalculator struct {
 
 	featureCache *lru.Cache[string, productcatalog.Feature]
 	subjectCache *lru.Cache[string, models.Subject]
+
+	metricRecalculationTime metric.Float64Histogram
 }
 
 func NewRecalculator(opts RecalculatorOptions) (*Recalculator, error) {
+	if err := opts.Validate(); err != nil {
+		return nil, fmt.Errorf("invalid options: %w", err)
+	}
+
 	featureCache, err := lru.New[string, productcatalog.Feature](defaultLRUCacheSize)
 	if err != nil {
 		return nil, fmt.Errorf("failed to create feature cache: %w", err)
@@ -53,10 +93,20 @@ func NewRecalculator(opts RecalculatorOptions) (*Recalculator, error) {
 		return nil, fmt.Errorf("failed to create subject ID cache: %w", err)
 	}
 
+	metricRecalculationTime, err := opts.MetricMeter.Float64Histogram(
+		metricNameRecalculationTime,
+		metric.WithDescription("Entitlement recalculation time"),
+		metric.WithExplicitBucketBoundaries(metricRecalculationBuckets...),
+	)
+	if err != nil {
+		return nil, fmt.Errorf("failed to create recalculation time histogram: %w", err)
+	}
+
 	return &Recalculator{
-		opts:         opts,
-		featureCache: featureCache,
-		subjectCache: subjectCache,
+		opts:                    opts,
+		featureCache:            featureCache,
+		subjectCache:            subjectCache,
+		metricRecalculationTime: metricRecalculationTime,
 	}, nil
 }
 
@@ -78,16 +128,25 @@ func (r *Recalculator) Recalculate(ctx context.Context) error {
 func (r *Recalculator) processEntitlements(ctx context.Context, entitlements []entitlement.Entitlement) error {
 	var errs error
 	for _, ent := range entitlements {
+		start := time.Now()
 		if ent.DeletedAt != nil {
 			err := r.sendEntitlementDeletedEvent(ctx, ent)
 			if err != nil {
 				errs = errors.Join(errs, err)
 			}
+
+			r.metricRecalculationTime.Record(ctx,
+				time.Since(start).Seconds(),
+				metric.WithAttributes(recalculationTimeDeleteAttribute))
 		} else {
 			err := r.sendEntitlementUpdatedEvent(ctx, ent)
 			if err != nil {
 				errs = errors.Join(errs, err)
 			}
+
+			r.metricRecalculationTime.Record(ctx,
+				time.Since(start).Seconds(),
+				metric.WithAttributes(recalculationTimeUpdateAttribute))
 		}
 	}