Hyperscaler Savings Plan Buyout Evaluator

Stack the net present value of honoring a cloud savings plan against a negotiated buyout. Provide the remaining commitment, term, utilization gap, and discount to see PV, unused exposure, and how steep the buyout must be to break even.

Outstanding savings plan obligation before applying any buyout discount.
Full months until the savings plan commitment naturally expires.
Percentage of the commitment that goes unused each month (the underutilized share).
Discount the provider offers off the remaining commitment for an early exit.
Defaults to 8.00% annual (converted to monthly) to discount future cash flows.

Validate with your provider agreements and accounting policies before executing a buyout.

Examples

  • $480,000 remaining, 14 months, 22.00% gap, 18.00% buyout, 8.00% discount rate → PV $456,829.72, buyout $393,600.00, NPV savings $63,229.72, unused PV $100,503.54.
  • $220,000 remaining, 9 months, 12.00% gap, 0.00% buyout discount, 6.00% discount rate → PV $214,599.34, buyout $220,000.00, NPV savings −$5,400.66 (stay in the plan), unused PV $25,751.92.

FAQ

What discount rate should I use?

Many FinOps teams use their corporate cost of capital or an internal hurdle rate. If unknown, keep the default 8% as a reasonable midpoint.

Does the calculator assume linear usage?

Yes. It assumes underutilization remains constant through the remaining term. For rapidly changing workloads, rerun scenarios with updated gaps.

Can I compare reselling commitments instead?

Set the buyout discount to the effective discount you would achieve via a resale marketplace to benchmark which path provides more savings.

How do true-ups or flex credits factor in?

Incorporate them by reducing the remaining commitment input to the net amount you expect after applying any provider-issued credits or true-ups.

Additional Information

  • PV calculation assumes the remaining commitment is consumed in equal monthly blocks discounted by the monthly financing rate provided.
  • Coverage gap captures the unused share of the commitment today; simple discount target reveals what discount would neutralize the gap without any time value adjustments.
  • PV coverage gap break-even shows the unused percentage at which the buyout equals the NPV of staying the course.
  • Add savings outputs into your FinOps dashboards to illustrate how utilization improvements or deeper discounts change the recommendation.

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