Savings Plans Billing

Billing Method

A savings plan is billed based on its hourly commitment. The total fee of a savings plan is as follows:

Total fee of a savings plan = Hourly commitment x Hours in a day (24) x Days in a year (365) x Commitment term

If the commitment term covers a leap year, the formula is as follows:

Total fee of a savings plan = Hourly commitment x Hours in a day (24) x Days in a year (365) x Commitment term + Hourly commitment x Hours in a day (24)

Payment Options

You have three payment options when buying a savings plan:

All upfront: You pay the entire price in a single upfront payment. During the commitment term you specified, you are not billed any additional fees for the savings plan.
No upfront: You do not need to pay anything at the time of purchase. You are billed for the commitment by the hour.

The total price of a savings plan is calculated based on the hourly commitment and commitment term, not the payment option, but you do get the best discount with the all upfront option.

Example: If you purchased a 1-year savings plan with an hourly commitment of $1 USD, the total price would be $8,760 USD (1 x 24 x 365). The payments with different options are as follows:

Full upfront: Pay the full $8,760 USD at the time of purchase.
No upfront: You do not make any upfront payment and will be, instead, billed at $1 USD/hour throughout the commitment term.

Pricing Rules

The sequence of applying discounts is as follows: Resource Packages > Reserved Instances > Savings Plans > Cash coupons
If the discount for pay-per-use resources is better than that provided by the savings plan, the better discount is used first, and the money owed (after applying the discount) can be covered by the savings plan.

Example

Assume you have 30 ECS.C7.large.2 instances in LA-Sao Paulo1 at a $0.428 USD/hour price. The hourly fee for these instances would be $12.84 USD (30*0.428=12.84).

Savings plan 1: Purchase a 1-year all upfront ECS.C7 savings plan with a $6 USD/hour commitment in LA-Sao Paulo1. With the savings plan, the price of the C7.large. 2 instances would be 55.6% of the original pay-per-use price. It would be $0.238 USD/hour (0.428 x 55.6%).

Savings plan 2: Purchase a 1-year all upfront ECS.C7 savings plan with a $7.14 USD/hour commitment in LA-Sao Paulo1. With the savings plan, the price of the C7.large. 2 instances would be 55.6% of the original pay-per-use price. It would be $0.238 USD/hour (0.428 x 55.6%).

Item	Savings Plan 1	Savings Plan 2
Price of the usage that the savings plan covers	6/55.6% = $10.79 USD	7.14/55.6% = $12.84 USD
Price of the remaining usage billed at pay-per-use price (Price for all usage charged at pay-per-use price – Price for the usage that the savings plan covers)	12.84 - 10.79 = $2.05 USD	12.84 - 12.84 = 0
Actual price when the savings plan applies (Commitment of the savings plan + Price of the remaining usage charged at pay-per-use price)	6 + 2.05 = $8.05 USD	7.14 + 0 = $7.14 USD
Savings (Price for all usage charged at pay-per-use price – Actual price when the savings plan applies)/Price for all usage charged at pay-per-use price	(12.84 - 8.05)/12.84 = 37.3%	(12.84 - 7.14)/12.84 = 44.4%