Cloud Reserved Instance Payback

See how quickly a reserved instance or savings plan pays back its upfront fee versus on-demand pricing. Enter the upfront commitment and on-demand rate, then optionally adjust the reserved rate, expected hours, and term to reveal monthly savings, payback timing, and total term savings.

Total upfront payment for the reserved instance or savings plan term.
Current on-demand hourly price for the instance family or service you run.
Leave blank to apply a 35% discount to the on-demand rate.
Defaults to 730 hours (full utilization). Adjust for expected coverage.
Length of the commitment term. Defaults to 12 months when blank.

Optimization aid only; confirm pricing and utilization with your cloud provider before committing.

Examples

  • $1,500.00 upfront, $0.12 on-demand, default 35% discount, 730 hours ⇒ Monthly savings: $30.66 USD | 48.94 months to pay back upfront | Net savings over 12 months: −$1,132.08 USD | Reserved hourly rate used: $0.08 USD.
  • $3,000.00 upfront, $0.28 on-demand, $0.18 reserved, 600 hours, 24-month term ⇒ Monthly savings: $60.00 USD | 50.00 months to pay back upfront | Net savings over 24 months: −$600.00 USD | Reserved hourly rate used: $0.18 USD.

FAQ

Can I model partial coverage of my fleet?

Yes. Lower the monthly hours to the portion of usage you plan to cover with the commitment so the savings reflect only that slice.

What term should I enter for savings plans?

Use the months in your commitment (12, 24, or 36) so the net savings compares accurately with the upfront charge.

How do I include convertible RIs?

Enter the negotiated reserved rate you expect after conversions; the calculator treats that as a fixed hourly price for the scenario.

Additional Information

  • The calculator defaults to a 35% discount if you leave the reserved rate blank, mirroring common 1-year standard reserved instance savings.
  • Monthly savings multiply the hourly rate delta by your expected covered hours, so partial utilization will lengthen payback time.
  • Net savings subtract the upfront fee from total savings over the selected term to show whether the commitment clears its hurdle.
  • If the reserved rate is not cheaper than on-demand, the calculator reports that no payback is available.

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