Volume discounts - AWS Billing

# Volume discounts

For billing purposes, AWS treats all of the accounts in the organization as if they were one account. Some services, such as AWS Data Transfer and Amazon S3, have volume pricing tiers across certain usage dimensions that give you lower prices the more you use the service. With consolidated billing, AWS combines the usage from all accounts to determine which volume pricing tiers to apply, giving you a lower overall price whenever possible. AWS then allocates each member account a portion of the overall volume discount based on the account's usage.

For example, let's say that Bob's consolidated bill includes both Bob's own account and Susan's account. Bob's account is the management account, so he pays the charges for both himself and Susan.

Bob transfers 8 TB of data during the month and Susan transfers 4 TB.

For the purposes of this example, AWS charges \$0.17 per GB for the first 10 TB of data transferred and \$0.13 for the next 40 TB. This translates into \$174.08 per TB (= .17*1024) for the first 10 TB, and \$133.12 per TB (= .13*1024) for the next 40 TB. Remember that 1 TB = 1024 GB.

For the 12 TB that Bob and Susan used, Bob's management account is charged (\$174.08 * 10 TB) + (\$133.12 * 2 TB) = \$1740.80 + \$266.24 = \$2,007.04.

Without the benefit of tiering across the consolidated bill, AWS would have charged Bob and Susan each \$174.08 per TB for their usage, for a total of \$2,088.96.