Savings Plans cost and break-even calculator

Formula

• h = 730 hours per month (365 days x 24 hours / 12 months)
• On-Demand cost per month at your usage: O = On-Demand rate x h x usage%
• Commitment cost per month: K = commitment rate x h; commitment cash paid by month m = upfront + K x m
• Over the term T (months): commitment total C = upfront + K x T; On-Demand total D = O x T
• Cost comparison: D - C (positive = the commitment costs less over the term; negative = it costs more)
• Break-even usage: u* = C / (On-Demand rate x h x T) (the usage at which D = C)
• Cash break-even month: m* = upfront / (O - K), when O > K; otherwise cumulative On-Demand spend never catches up with the cash paid

Units

• On-Demand-equivalent rate of the covered usage: $ per hour at full utilization
• Upfront payment: $ in total
• Hourly commitment: $ per hour
• Term: months
• Expected utilization of the commitment: %
• Amounts are in the currency you use; the calculator does not convert currencies.

Assumptions and limits

• Inputs are rates and amounts you enter. The calculator does not contain, fetch or assume any current price, discount rate or offer.
• Usage is flat: the same share of hours every month of the term.
• No discounting, inflation, tax, support charges, price changes, resale or exchange of the commitment, and no change in your usage pattern.
• The comparison stops at the end of the term. After the term, On-Demand rates normally apply again unless you buy a new commitment.

Cost comparison treats an upfront payment as part of the total cost of the term. Cash break-even looks at timing: the month in which the cumulative On-Demand spend you avoid has caught up with the cash you paid on the commitment. They answer different questions, and neither is advice to buy.

Source for the product facts above: AWS documentation, checked 2026-10-27 (AWS Savings Plans, AWS Savings Plans User Guide pages 'What are Savings Plans?' and 'Savings Plans types' as retrieved on the checked date).