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Cover Image for Budgeting & Cost Management on AWS

Budgeting & Cost Management on AWS

AWS Pricing Model, Free Tier, Billing & Cost Management Dashboard, AWS Pricing Calculator, Cost Allocation Tag, Cost Explorer, Budgets & Alerts, AWS Support Plan

Hitesh Sahu
Written by Hitesh Sahu, a passionate developer and blogger.

Mon Feb 16 2026

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Introduction to AWS

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AWS Global Infrastructure And Management

Pricing

AWS Plans

  • On Demand: Pay as you go
  • Saving Plan: Consistent Usage cost per year for long time
    • EC2 : 72% discount
    • Compute Saving plan: uses machine learning to recommend optimal AWS resources and therefore reduces costs. 66% Saving Plan:
  • Reserved Instances: Billing discount to on demand instance. Long time commitment but give big discount
  • Spot Instances: Make available computation power for temporary on demand usage with 2 minute warning with up to 90% discount.
  • Dedicated Host: for license compliance allow per core or per cpu

AWS pricing Model

  • Pay as you go
  • Pay less when you reserve
  • Pay less for large Volume(cost per GB)
  • Pay less as AWS grow (Economy of scale)

Consolidated Pricing

  • Pay price by combining bill of all AWS Account
  • Easier to pay bill because we need to pay bill at single location
  • Bulk Pricing Discount on aggregate amount
  • Free of cost

AWS Free Tier

  • Always Free: AWS Lambda free 1 Million Requests per month
  • 12 Months Free: S3 5 GB
  • Trials: Light sail for 1 month trail

Free Services

  • IAM,
  • VPC,
  • Consolidated Billing

Free Service with cost for feature created

  • Elastic Bean Stalk,
  • Cloud Formation
  • Auto Scaling group

AWS Billing & Cost Management Dashboard:

pay bills, monitor usage to analyze & control cost

  • Billing Dashboard is disabled for IAM users by default and need to be enabled from Account setting in root user

AWS System Manager

AWS Billing & Cost Management dashboard

AWS Pricing Calculator

1. Estimate Cost

AWS Pricing Calculator(Deprecated)

allows calculating cost of using AWS feature in any region. - Estimate Actual Cost for Architecture Solution

  • Estimate net monthly or Yearly expense if we use a different DB or service
  • Simple Monthly Calculator is deprecated in favour of AWS Pricing Calculator by June 2020

Total Cost Ownership(TCO)

Create report of cost of owning & running Server

  • Compare cost of running Server, Storage, network & Labour in Private Server vs AWS
  • Good for presentation to show cost saving on moving to AWS

2. Track Cost

Billing Dashboard

High level overview of expenses on AWS Console

Cost allocation Tag

Create a detail report of cost by category

  • Use Tag to organize resources & help with creating a detail report of cost
    • aws: createdBy: autogenerated tag by AWS on resource
    • user: : custom tag defined by user to tag resource eg. name, environment, team
  • Resource Group: collection of tags to organize resources.

Cost & Usage Report

Give most detail about all usage in csv format

  • Dive deeper into cost
  • Most granular report by AWS console

Cost Explorer

Visualize and Analyze cost & usage using Graphs

  • Analyze data high levels as well as hourly, monthly, resource level
  • Forecast up to 12 month based on usage
  • create Saving Plan to save cost based on usage

3. Monitor cost

Billing alarm in Cloudwatch

  • store in us east 1
  • Billing data for all over the world
  • Actual cost not projected cost
  • Integrated simple alarm to create notification

Budgets

Track Cost & usage on AWS to create Alert when usage cost exceed budget set.

  • Create alarm when cost exceeds budget
  • Budget on usage, cost & reservation
  • Track usage of Reserve instances
  • Send 5 SNS notifications per budget
  • Allow Filter instead of whole cost
  • 2 budget are free after that it cost 2 cent/day/budget

https://console.aws.amazon.com/billing/home?#/budgets/overview

AWS Budgets


AWS Support Plan Tier

Higher tier has all features of lower tiers

1. Basic

  • Free for all
  • Customer service & Forum access
  • Limited AWS Trusted Advisor checks
  • Include 7 Core Checks
  • Personal Health View

2. Developer

  • Basic + Business Hour Email Customer Support
  • 1 Primary Contact on account
  • 24 hour Response Support Time
  • 12 hour in case of high severity
  • Client side diagnostic tools
  • Include 7 Core Checks

3. Business

  • Unlimited cases
  • Direct phone access
  • 1-4 hour SLA
  • Full Check Trusted Advisor ChecksF
  • All AWS Trusted Advisor checks

4. Enterprise

  • Dedicated Technical Account Manager(TAM)
  • 15 Minute SLA
  • Well Architected & operation review
  • Full Check Trusted Advisor Checks
  • Provides access to online training with self-paced labs?

AWS Marketplace

  • Listings from independent software vendors.
  • Software for AWS

Reference

  • Pricing
  • MarketPlace
  • AWS SUpport
AWS/10-Pricing
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