Load an Azure VM's list prices, or enter any provider's rates.
730 hours a month, 1 year term, USD.
At 730 hours a month you are above the break-even of 451 h/month (62% of the month). Over 1 year that is $771.80.
| Pay as you go | Reservation | Reservation saves | |
|---|---|---|---|
| Per month | $167.90 | $103.58 | +$64.32 |
| Per year | $2,014.80 | $1,243.00 | +$771.80 |
| Full term (1 year) | $2,014.80 | $1,243.00 | +$771.80 |
| Runtime | Hours | Pay as you go | Reservation | Cheaper |
|---|---|---|---|---|
| Always on (yours) | 730 | $167.90 | $103.58 | Reservation |
| 75% | 548 | $126.04 | $103.58 | Reservation |
| 50% | 365 | $83.95 | $103.58 | Pay as you go |
| 10 h × 5 days | 217 | $49.91 | $103.58 | Pay as you go |
| 8 h × 5 days | 174 | $40.02 | $103.58 | Pay as you go |
Comparing Azure VMs? The Azure VM cost calculator adds savings plans, Windows and a second size, and your AI assistant can answer the same question through the MCP server.
A reservation bills its hourly rate for all 730 hours of the month, used or not. Turning the VM off at night saves nothing on the reserved part.
With a 40% discount the reservation wins above 60% of the month (about 438 hours); with 60% off it wins above 40% (292 hours).
Taxes, disks, bandwidth, software licences and negotiated discounts. Exchange and cancellation rules depend on the provider.
Yes. Azure reservations, AWS Reserved Instances and savings plans are commitments: the reserved rate is billed for every hour of the term, whether the workload runs or not. Hours you don't use are lost. Pay as you go is billed only for the hours the workload runs.
Divide the monthly cost of the reservation (reserved hourly rate × 730, plus any upfront payment spread over the term) by the pay-as-you-go hourly rate. The result is the number of hours a month the workload must run for the reservation to be cheaper. A reservation 40% cheaper than pay as you go breaks even at 60% of the month, about 438 hours.
A 3-year term usually gives a much bigger discount (on Azure VMs often around 60% versus about 40% for 1 year), but it only pays off if the workload keeps the same size and region for three years. If the workload might shrink, move or be replaced, the 1-year term is the safer commitment.
Enter the upfront amount for the whole term and the remaining hourly rate, if any. The calculator spreads the upfront payment evenly over the months of the term so it can be compared with pay as you go month by month.
Yes. A compute savings plan is also an hourly commitment billed whether you use it or not, so the same break-even logic applies: enter the savings plan hourly rate as the reserved rate.