Savings Plans
User Guide (Version 1.0)

Understanding How Savings Plans are Applied to Your Usage

If you have active Savings Plans, those will apply automatically to your eligible usage to reduce your bill.

Calculating Bills with Savings Plans

Savings Plans apply to your usage after the EC2 Reserved Instances (RI) are applied.

Because Compute Savings Plans have broader applicability, EC2 Instance Savings Plans apply before Compute Savings Plans. Within each type of Savings Plan, all applicable plans, regardless of purchase options (for example, term length, payment), are applied together to usage.

First, Savings Plans apply to the account that owns them, starting with products that receive the highest savings percentage, compared to On-Demand. Then, Savings Plans are applied to the broader organization. If multiple products provide the same savings percentage, then the product with the lower rate will receive the benefit first. Savings Plans benefits continue to apply until there are no more remaining usage, or you've exhausted your commitment.

Savings Plans Example

The prices in this example are illustrative only. In this example, you have the following usage:

  • 1x c5.9xlarge Linux, shared tenancy instance in us-east-1

  • 1x c5.24xlarge Windows, dedicated tenancy instance in us-east-1

  • 10 vCPU and 5 GB per hour of Fargate usage in us-west-1

Pricing example

On-Demand Compute Savings Plans rate Savings percentage (over On-Demand) EC2 Instance Savings Plans rate Savings percentage (over On-Demand)
C5.9xlarge Linux $4.00 $2.00 50% $1.00 75%
C5.24xlarge Windows $10.00 $8.00 20% $6.00 40%
Fargate vCPU $1.50 $1.00 33.3% N/A N/A
Fargate GB per hour $2.00 $1.00 50% N/A N/A

Scenario 1: Savings Plans Applies to All Usage

You purchase a one year Compute Savings Plan with a $25.00/hour commitment.

Since you have a Savings Plan commitment of $25.00/hour, all of your usage will be covered by Savings Plans, and the Savings Plans rate will be applied to them. You will pay $25.00 in that hour towards your Savings Plan. Without Savings Plans, you would have been charged at On-Demand prices of $39.00.

Scenario 2: Savings Plans Applies to Some Usage

You purchase a one year Compute Savings Plan with a $2.00/hour commitment.

In any hour your Savings Plans will apply to your usage starting with the highest discount percentage until you've exhausted your commitment for that hour. Therefore, Savings Plans rate is applied to the C5.9xlarge instance since it offers the highest savings percentage. Since you've now exhausted your commitment, all other usage is charged at On-Demand rates and you'll pay $35.00 on On-Demand charges.

Scenario 3: Savings Plans and Reserved Instances Applies to the Usage

You purchase Compute Savings Plans with a commitment of $5.00/hour. You also have a 1x c5.9xlarge Linux shared tenancy instance in us-east-1 RI.

First, the RI covers the c5.9xlarge instance. Then, the Savings Plans rate is applied to the Fargate memory resources, since that provides the highest savings percentage. You pay $5.00 towards Savings Plans and $25.00 of on On-Demand charges, with applicable RI fees.

Scenario 4: Multiple Savings Plans Applied to the Usage

You purchase $10.00 of Compute Savings Plans. You also have $1.00 of EC2 Instance family Savings Plans for the c5 family in us-east-1.

First, The EC2 instance family Savings Plan is applied to the c5.9xlarge instance. Then the Compute Savings Plans is applied to the Fargate memory usage, and then to 5 units of Fargate vCPU usage. All other usages are charged On-Demand rates. You pay $11.00 of Savings Plans and $17.50 of On-Demand charges.

For more information, see Understanding Consolidated Bills.