AWS News Blog

The New AWS TCO (Total Cost of Ownership) Calculator

Our customers often find multiple benefits from moving to the cloud, including agility, cost savings, and flexibility. Whether you run on AWS or own and operate your own infrastructure, there are many contributors to the overall cost. Weighing the financial considerations of owning and operating a data center (or renting a colocation facility) versus using a cloud infrastructure requires detailed and careful analysis.

Customers tell us that it can be challenging for them to perform accurate apples-to-apples cost comparisons between on-premises infrastructure and cloud. In reality, it is not as simple as just comparing on-premises hardware costs to the pay-as-you-go pricing model of compute, storage, and bandwidth in the cloud. The problem is further complicated by the fact that calculating the true, complete cost of owning and operating your own on-premises infrastructure is not trivial.

To make it easier for you to compare these costs, we are announcing the new AWS TCO calculator. This tool should help customers with a base level of familiarity with infrastructure to generate a fact-based apples-to-apples TCO comparison between on-premises infrastructure and AWS.

The calculator is simple to use and provides reasonable estimate of costs for on-premises/colocation infrastructure and equivalent AWS services based on the information you provide. It also provides a comprehensive & detailed cost breakdown report (which you can download or store in Amazon S3 for sharing with others) and an FAQ that explains the assumptions and the methodology behind the calculations.

The tool automates the task of selecting the right AWS instance type based on the information you provide. As you can see below, you can describe your physical or virtual infrastructure in detail and the tool will provide the equivalent AWS instance types that meet your requirements. This will eliminate much of the guesswork associated with choosing the right AWS instance types.

For customers interested in drilling-down into individual cost items, the tool provides a detailed line by line comparison, backed by data points from third-party analyst and industry research, and analysis of data from hundreds of AWS customers.

As always, we are looking for feedback, suggestions and comments and hope to roll out more use cases and improve it over time. Try out the new AWS TCO Calculator today and let us know what you think. You can contact the team behind the tool via email at


Jeff Barr

Jeff Barr

Jeff Barr is Chief Evangelist for AWS. He started this blog in 2004 and has been writing posts just about non-stop ever since.