Why aren't my Savings Plans applying to my AWS billing in the way that I expected?

Last updated: 2022-06-27

I purchased a Savings Plan, but it's being used in a way that I didn't expect.

Resolution

AWS Cost Explorer shows you details on the savings realized with your Savings Plans. You can also use the Savings Plans performance reports in AWS Cost Explorer to understand how well you are using your Savings Plans.

For Savings Plans to apply, the following conditions must be true:

  • The upfront cost (partial or all) for your Savings Plan must process successfully. Check the status of your payments on the Payment History page of the Billing and Cost Management console. To retry a failed Savings Plans payment, contact AWS Support. Failed Savings Plans purchases from previous billing periods can’t be retried.
  • Your Savings Plan must still be active. When you purchase a Savings Plan, you choose a one-year or three-year term. After the term expires, your usage is billed at the On-Demand Instance price. To continue receiving the savings, purchase another Savings Plan with the same specifications. To check if your Savings Plans are active, you can check the AWS Cost Management console.
    Tip: To avoid gaps in savings, set Savings Plans alerts.
  • You must have AWS compute usage in a supported service with the corresponding plan type. Amazon Elastic Compute Cloud (Amazon EC2), AWS Fargate, AWS Lambda, or Amazon SageMaker are eligible services for Savings Plans.

If the conditions listed above are met, consider the following scenarios:

  • Savings Plans commitment are hourly and will apply up to the hourly commitment for each hour as long as there is eligible usage. As Savings Plans are hourly, there could be remaining Savings Plans commitment in some hours and additional On-Demand charges in other hours. The remaining Savings Plans commitment in one hour can't be applied to On-Demand charges in another hour.
  • If you have both Reserved Instances (RI) and Savings plans, RIs will apply before Savings Plans and any uncovered On Demand usage will be covered by Savings Plans.
  • When Savings Plans apply to usage, the On Demand charges are displayed first followed by a corresponding discount for that On Demand usage. Savings Plans are applied to the qualifying usage, starting with the usage that receives the largest calculated savings. If other usage provides a larger savings, AWS will apply the Savings Plans to that usage.
  • AWS Free Tier benefits are applied before Savings Plan benefits. Any excess usage that isn't covered by free tier, will be covered by Savings Plans.
  • If you have multiple Savings Plans active at the same time, your bill will be generated by taking into account all active Savings Plans.
  • The benefit of Savings Plans is applied to usage every hour. Any unused benefits will not be carried over to the next hour.

Savings Plans are applied differently in an organization's consolidated bill, depending on whether sharing is turned on or off. For more information, see How is the pricing benefit of a Savings Plan applied across an organization's consolidated bill?