AWS Savings Plan Calculator
Total Estimated Savings
Hourly Commitment
Total Cost w/ Savings Plan
Total On-Demand Cost
What is an AWS Savings Plan?
An AWS Savings Plan is a flexible pricing model that offers significant savings over standard On-Demand pricing in exchange for a commitment to a consistent amount of compute usage (measured in $/hour) for a 1 or 3-year term. This model is ideal for users with steady-state workloads. Unlike Reserved Instances, Savings Plans are more flexible; they automatically apply to your usage across different instance families, sizes, regions, and services like AWS Fargate and AWS Lambda, not just EC2. Our aws savings plan calculator helps you quantify these potential benefits before you commit.
The core idea is simple: you tell AWS you will spend at least a certain amount of money per hour on compute services. In return, AWS gives you a discounted rate on that usage. Any usage beyond your commitment is billed at the regular On-Demand rate. The key is to commit to an amount you are confident you will consistently use.
AWS Savings Plan Formula and Explanation
The calculation for determining your savings is straightforward. Our aws savings plan calculator uses the following logic to estimate your final cost and total savings:
Total Savings = Total On-Demand Cost – Total Savings Plan Cost
Where:
- Total On-Demand Cost = Hourly On-Demand Spend × Hours in Term
- Total Savings Plan Cost = (Hourly Commitment × Hours in Term) × (1 – Average Discount Rate)
The “Average Discount Rate” is a crucial variable. It is influenced by the plan type (Compute vs. EC2 Instance), term length (1 or 3 years), and payment option (No, Partial, or All Upfront). This aws savings plan calculator uses an estimated average, but for precise figures, you should consult the AWS Cost Management Console.
| Variable | Meaning | Unit | Typical Range |
|---|---|---|---|
| Hourly On-Demand Spend | Your current compute expenditure per hour at On-Demand rates. | USD ($) | $0.01 – $1,000+ |
| Term Length | The duration of your commitment. | Years | 1 or 3 |
| Average Discount Rate | The percentage discount applied to your committed spend. | Percent (%) | 15% – 65% |
| Total Savings | The total dollar amount saved over the entire term. | USD ($) | Dependent on inputs |
Practical Examples
Let’s explore two common scenarios to see how the aws savings plan calculator works in practice.
Example 1: Small Business with Steady Workloads
A small e-commerce site uses AWS Fargate and EC2 for its application, with a consistent On-Demand spend of around $2.50 per hour.
- Inputs:
- Hourly On-Demand Spend: $2.50
- Term: 1 Year
- Payment: No Upfront
- Estimated Discount: 17%
- Results:
- Hourly Commitment: $2.50/hr
- Total 1-Year On-Demand Cost: $21,900
- Total 1-Year Savings Plan Cost: $18,177
- Total Estimated Savings: $3,723
Example 2: Enterprise with Large-Scale Compute
A large data analytics company has a significant footprint of EC2 instances, spending an average of $85 per hour. They are confident in their usage for the next three years and opt for an upfront payment to maximize savings.
- Inputs:
- Hourly On-Demand Spend: $85
- Term: 3 Years
- Payment: All Upfront (Illustrative discount applied)
- Estimated Discount: 55%
- Results:
- Hourly Commitment: $85/hr
- Total 3-Year On-Demand Cost: $2,233,800
- Total 3-Year Savings Plan Cost: $1,005,210
- Total Estimated Savings: $1,228,590
For more detailed cost analysis, check out our guide on AWS cost optimization strategies.
How to Use This AWS Savings Plan Calculator
Using our tool is simple. Follow these steps to get a clear estimate of your potential savings:
- Enter Hourly Spend: Input your current average hourly spend on compute services. You can find this in your AWS Cost Explorer by filtering for EC2, Fargate, and Lambda usage and changing the granularity to “Hourly”.
- Select Term Length: Choose between a 1-year or 3-year commitment. A 3-year term offers substantially better discounts.
- Choose Payment Option: Select No Upfront, Partial Upfront, or All Upfront. Paying more upfront increases your discount percentage.
- Input Discount Rate: Enter the average discount percentage AWS offers for your chosen configuration. This calculator provides a common default, but you can adjust it for a more accurate estimate.
- Review Results: The calculator will instantly display your total estimated savings, your new effective cost with the plan, and the original on-demand cost. The bar chart provides a powerful visual comparison.
Key Factors That Affect AWS Savings
Several factors influence the effectiveness of an AWS Savings Plan. Understanding them is crucial for making an informed decision. For a deep dive, you might want to compare with our AWS EC2 instance calculator.
- Term Commitment (1 vs. 3 years): This is the biggest factor. A 3-year commitment can often double the discount rate of a 1-year plan.
- Payment Option (Upfront vs. Not): Paying all or a portion of the commitment upfront reduces risk for AWS, and they pass those savings on to you as a higher discount.
- Plan Type (Compute vs. EC2 Instance): Compute Savings Plans are more flexible and apply across services, but EC2 Instance Savings Plans can offer slightly higher discounts if you commit to a specific instance family in a specific region.
- Usage Consistency: Savings Plans are most effective for steady-state workloads. If your usage is highly variable and unpredictable, you may not fully utilize your commitment.
- Service Choice: The discount rates apply differently to various services. The savings on an m5.large instance might differ from savings on AWS Fargate usage.
- AWS Region: Discount rates can vary slightly between different AWS regions.
Frequently Asked Questions (FAQ)
What happens if my usage is higher than my commitment?
Any usage above your hourly commitment is simply billed at the standard On-Demand rates. You still receive the discount on the portion of usage covered by your plan.
What happens if my usage is lower than my commitment?
You are obligated to pay for your hourly commitment for the full term, regardless of your usage. This is why it’s critical to analyze your historical usage and commit to an amount you are confident you will exceed. Using an aws savings plan calculator helps model this risk.
What’s the difference between Savings Plans and Reserved Instances (RIs)?
Savings Plans are more flexible. They automatically apply savings to different instance sizes and families, and even across services like Fargate. Standard RIs require a commitment to a specific instance type and region. Think of Savings Plans as the more modern, flexible successor to RIs.
Can I have multiple Savings Plans at once?
Yes. You can purchase multiple Savings Plans, and they will all apply concurrently to your bill. This is a common strategy for layering commitments as your usage grows. For another perspective, see how this compares to our AWS TCO calculator.
Which services are covered by Compute Savings Plans?
They cover usage for Amazon EC2 instances, AWS Fargate, and AWS Lambda.
How do I find the exact discount rate for my account?
In the AWS Cost Management console, navigate to “Savings Plans” and then “Purchase Savings Plans.” AWS will show you recommendations and the precise discount rates for 1-year and 3-year terms based on your historical usage.
Can I modify or cancel a Savings Plan?
No, once purchased, a Savings Plan cannot be modified or canceled. You are locked into the hourly commitment for the entire 1 or 3-year term.
Is the “Hourly Spend” unit before or after taxes?
You should use your pre-tax hourly spend for the calculation. The tool calculates savings based on the list prices for AWS services.