Amortization Rules for Savings Plans

Savings Plans Cost Amortization

Savings Plans costs are amortized based on the actual usage. The amortized amount is determined by the portion of the amount deducted from Savings Plans to the total amount of Savings Plans.

There are two types of costs involved: amortized costs deducted from Savings Plans and amortized costs not deducted from Savings Plans.

• Amortized costs not deducted from Savings Plans: Added the new bill type Expenditure-savings plans unused.

After savings plans costs are amortized based on the actual usage, you can allocate the costs to specific tags and enterprise projects.

Analysis of Savings Plans Cost Amortization

On the Cost Analysis page, you can analyze the amortized costs of Savings Plans by bill type. For details, see Viewing Cost Analyses.

Cost amortization rules

The amortization rules for Expenditure-savings plans used are different from those for Expenditure-savings plans unused.

• Amortized amount for the bill type Expenditure-savings plans used = Amount Deducted from Savings Plan for the bill type Expenditure-savings plans used
• Amortized amount for Expenditure-savings plans unused = Total amount of Savings Plans in the billing cycle – Amortized amount of costs deducted from Savings Plans in the billing cycle

Cost amortization example

Suppose you purchased a 1-year c3_2 savings plan with a commitment of $1 USD/hour and the total amount of $8,760 USD, within the effective period from January 01, 2025 to December 31, 2025.

Take the billing cycle of February 2025 as an example. The total amount of the savings plan is $672 USD [$1 USD/hour x (28 days x 24) hours].