Single-instance throughput on modern hardware with AES-NI saturates at approximately 200 to 400 Mbps depending on CPU speed, memory bandwidth, and kernel parameters. For VPS with 1 Gbps or faster ports and multiple vCPU cores, the single-process limit is reached long before the network port is saturated. Multiple instances are warranted when a single instance's CPU usage consistently exceeds 70 to 80% while the network interface has remaining capacity.
Monitor with nyx and system tools: if nyx shows consistent high circuit counts and the relay's tor process consumes one full CPU core (100% of one vCPU in top), a second instance would double achievable throughput by utilizing a second CPU core. The threshold for adding a third instance follows the same logic: when two instances together consume close to two full vCPU cores.
Note: the Tor Project requests that operators who run many instances or contribute a large fraction of total network bandwidth be mindful of network diversity. Running 10 instances from a single operator concentrates a significant fraction of Tor capacity in one entity, which has trust implications for the network. Consider the network health impact when planning multi-instance deployments.