Ready to deploy? But before you do, don't forget to explore AWS EC2 pricing

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Amazon Web Services( AWS) Elastic Compute Cloud( EC2) offers scalable computing capacity in the cloud, allowing companies and formulators to run businesses efficiently. While EC2 provides flexibility and release of use, understanding its pricing structure can be difficult due to the variety of case types, pricing models, and fresh services.


AWS EC2 allows users to rent virtual servers (instances) to run applications. Instances are accessible in nonidentical sizes, configurations, and pricing options adapted to nonidentical workload conditions. The variety of instance types is rounded off by nonidentical pricing options, allowing users to take the most cost-effective model grounded on their special requirements. On-demand instances extend flexibility with no long-term commitments, allowing them for short-tenure or changeable workloads. Reserved Instances significantly discount long-tenure operation commitments, which is ideal for steady-state operations with predictable usage patterns. 

Critical Components of AWS EC2 Pricing  

Instance Types 

Cases are optimized for different use cases, similar to general purpose, compute-optimized, memory-optimized, and storage-optimized.   

Pricing Models   

On-Demand Instances Pay for computing capacity by the hour or alternate with no long-term commitments. Reserved Instances Commit to using EC2 over a one—or three-year term to receive a significant discount compared to On-Demand pricing.  

Spot Instances 

Purchase unused EC2 capacity at a discounted rate, which can be intruded by AWS with a two-minute warning.  

Savings Plans 

The flexible pricing model offers lower prices than On-Demand pricing in exchange for a commitment to a harmonious quantum of operation over a one- or three-year term.  

AWS EC2 Pricing Table

To give a clearer perspective, let’s look at the detailed pricing table of AWS EC2.

Instance Type


Memory (GB)

Storage (GB)

On-Demand hourly rate

1-Year Reserved (No Upfront)

1-Year Reserved (All Upfront)

3-Year Reserved (No Upfront)

3-Year Reserved (All Upfront)




EBS Only









EBS Only









EBS Only









EBS Only









EBS Only









EBS Only









EBS Only









EBS Only







Comparison of AWS EC2 Pricing and Microsoft Azure VM

Instance TypevCPUMemoryOSEC2 On-Demand Pricing (per hour)Azure Pay-As-You-Go Pricing (per hour)
General Purpose     
t3a.medium28 GiBLinux$0.0336$0.0400
Compute Optimized     
c6i.large24 GiBLinux$0.0851$0.0900
Memory Optimized     
r6i.large216 GiBLinux$0.1008$0.1050

Comparison of AWS EC2 Pricing and Google Cloud

Instance TypevCPUMemoryOSEC2 On-Demand Pricing (per hour)Google Cloud Pricing (per hour)
General Purpose     
t3a.medium28 GiBLinux$0.0336$0.033
Compute Optimized     
c6i.large24 GiBLinux$0.0851$0.070
Memory Optimized     
r6i.large216 GiBLinux$0.1008$0.092

Comparison of AWS EC2 Pricing and Digital Ocean Pricing

Instance TypevCPUMemoryOSEC2 On-Demand Pricing (per hour)DigitalOcean Pricing (per hour)
General Purpose     
t3a.medium28 GiBLinux$0.0336$0.015
Compute Optimized     
c6i.large24 GiBLinux$0.0851$0.0625
Memory Optimized     
r6i.large216 GiBLinux$0.1008$0.125

Detailed Pricing for Common Instance Types  

To illustrate the costs involved, the following table presents pricing for several popular EC2 instance types in the US East(N. Virginia) region. Prices are in USD.  

On-Demand Pricing 

On-demand instances are ideal for users who want flexibility and scalability without outspoken costs. This model is particularly suitable for applications with changeable workloads or short-term requirements.   

Example Calculation  

For instance, running anm5.large instance for 10 hours would cost  10  hours  ×    per hour  =     10 hours ×$0.096 per hour = $0.96   

Reserved Instances  

Reserved Instances offer significant savings compared to On-Demand pricing. They're suitable for operations with steady-state or predictable operation. Users can choose between All Upfront, Partial Upfront, or No outspoken payment options, with All outspoken furnishing the most significant reduction.   

Example computation  

For anm5.large instance, with a 1-year Reserved( All Upfront) plan  1- year cost  =   24  hours/ day  ×  365  days/ year  ×    per hour  =     1- year cost =  24 hours/ day × 365 days/ year ×$0.062 per hour = $543.12   

Spot Instances  

Spot Instances allow users to use spare AWS capacity at reduced costs. However, AWS can terminate these instances with minimum notice, making them suitable for flexible and fault-tolerant applications.   

Example Calculation  

If the Spot price for anm5.large instance is$0.04 per hour, and it runs for 50 hours  

50  hours × per hour = 50 hours × $0.04 per hour = $2.00   

Savings Plans  

Savings Plans offer flexibility at a lower price than demand in exchange for a commitment to a harmonious amount of compute usage over 1 or 3 years. Savings Plans apply to EC2 instances of any family, size, or region.   

Example Calculation  

If committing to $100 per month usage with a 1-year Compute Savings Plan at a 25 discount,   100  per month × 12  months = 1200  per year  

One hundred per month × 12 months ×0.75 = $ 900 per year   

Additional Costs  

Data Transfer  

Data transfer costs vary based on the source and destination of the data. Transferring data between EC2 instances in the same region is generally free, but data transfer to the internet is charged.   


AWS charges for the EBS volumes attached to EC2 instances. EBS pricing depends on the volume type(e.g., SSD, provisioned IOPS).   

Elastic IPs  

Elastic IPs incur charges when they aren't associated with a running instance. The cost is generally nominal but can add up if multiple IPs are reserved without being used.   

Cost ComponentDescriptionPricing Details
Data TransferCost of data transferred in and out of EC2 instancesVaries by region and data volume
Elastic IP AddressesCharges for allocated Elastic IPs$0.005 per hour (if not associated with a running instance)
EBS (Elastic Block Store)Block storage for EC2 instances$0.10 per GB-month of provisioned storage
EBS-Optimized InstancesDedicated throughput for EBS volumesAdditional hourly fee (varies by instance type)
Amazon CloudWatchMonitoring and logging service$0.01 per 1,000 metrics, $0.50 per GB log data
Load BalancingDistributing incoming application traffic across multiple targets$0.0225 per NLB-hour, $0.008 per LCU-hour
SnapshotsBackup of EBS volumes$0.05 per GB-month of data stored
Reserved InstancesLower hourly rates in exchange for long term commitmentUp to 75% discount on On-Demand prices
Savings PlansCommitment to a consistent amount of usageUp to 72% discount compared to On-Demand rates
Dedicated HostsPhysical servers fully dedicated to your use$1.00 - $3.00 per hour depending on instance type
DNS (Route 53)Domain Name System service$0.50 per hosted zone per month, $0.40 per million queries

Tips for Managing EC2 Costs  

Reserved Instances and Savings Plans 

Use Reserved Instances or Savings Plans for predictable workloads to maximize cost savings.  Monitor Usage: AWS Cost Explorer and other monitoring tools track and optimize EC2 usage.  

Spot Instances 

Take advantage of Spot Instances for non-critical or flexible operations.  Data Transfer Optimization Minimizes data transfer costs by optimizing the architecture to reduce cross-region or internet data transfer.  


AWS EC2 offers protean and scalable computing solutions, but understanding its pricing models is pivotal to managing costs effectively. By choosing the applicable instance types and pricing plans and using fresh services wisely, users can optimize their AWS expenditure. Whether concluding for the flexibility of On-Demand, the savings of Reserved Instances, the cost-effectiveness of Spot Instances, or the versatility of Savings Plans, a strategic approach to EC2 usage can significantly profit both small and large-scale operations.

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