1. What is AWS Savings Plan?

AWS Savings Plans is a flexible pricing model that offers lower prices compared to On-Demand pricing, in exchange for a specific usage commitment (measured in $/hour) for a 1 or 3-year term.

2. How Does the Calculator Work?

The calculator uses the Savings Plan formula:

Where:

• \( Commitment \) — Hourly spend commitment (USD/hour)
• \( Discount Rate \) — Savings rate as decimal (e.g., 0.30 for 30%)

Explanation: The equation calculates your potential savings based on your committed hourly spend and the discount rate offered by AWS.

3. Importance of Savings Calculation

Details: Calculating potential savings helps organizations plan their cloud budgets and determine the optimal commitment level for their AWS usage patterns.

4. Using the Calculator

Tips: Enter your planned hourly commitment in USD and the discount rate as a decimal (e.g., 0.30 for 30% discount). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What types of Savings Plans does AWS offer?
A: AWS offers Compute Savings Plans (most flexible) and EC2 Instance Savings Plans (specific to instance families).

Q2: How is this different from Reserved Instances?
A: Savings Plans offer more flexibility as they apply to usage regardless of instance family, size, OS, tenancy, or AWS Region.

Q3: What discount rates can I expect?
A: Discounts typically range from 30-72% depending on commitment term (1 or 3 years) and payment option (All Upfront, Partial Upfront, No Upfront).

Q4: Can I change my Savings Plan later?
A: You can modify or exchange your Savings Plan within certain limits, but you cannot cancel it before the term ends.

Q5: How does AWS apply the Savings Plan to my usage?
A: AWS automatically applies the Savings Plan discount to your eligible usage, starting with the highest discount opportunities first.