How to Reduce AWS Cost: Simple Steps to Save Money

To reduce AWS cost, start by right-sizing your resources and using Reserved Instances or Savings Plans for steady workloads. Also, monitor usage with AWS Cost Explorer and turn off unused resources to avoid unnecessary charges.

Syntax

Here are key AWS cost-saving features and their usage:

• Reserved Instances: Commit to a 1- or 3-year term for lower hourly rates.
• Savings Plans: Flexible pricing plans based on usage commitment.
• AWS Cost Explorer: Tool to analyze and monitor your AWS spending.
• Auto Scaling: Automatically adjust resource capacity to match demand.

bash

aws ec2 describe-reserved-instances
aws ce get-cost-and-usage --time-period Start=2024-01-01,End=2024-01-31 --granularity MONTHLY --metrics "UnblendedCost"
aws autoscaling update-auto-scaling-group --auto-scaling-group-name my-asg --min-size 1 --max-size 3

Example

This example shows how to use AWS CLI to check your reserved instances and analyze monthly costs to find savings opportunities.

bash

aws ec2 describe-reserved-instances --filters Name=state,Values=active
aws ce get-cost-and-usage --time-period Start=2024-04-01,End=2024-04-30 --granularity MONTHLY --metrics "UnblendedCost" --group-by Type=DIMENSION,Key=SERVICE

Output

{
  "ReservedInstances": [
    {
      "ReservedInstancesId": "abcd1234",
      "InstanceType": "t3.medium",
      "State": "active",
      "Start": "2023-01-01T00:00:00Z",
      "End": "2026-01-01T00:00:00Z"
    }
  ]
}
{
  "ResultsByTime": [
    {
      "TimePeriod": {
        "Start": "2024-04-01",
        "End": "2024-04-30"
      },
      "Groups": [
        {
          "Keys": ["Amazon EC2"],
          "Metrics": {"UnblendedCost": {"Amount": "120.00", "Unit": "USD"}}
        },
        {
          "Keys": ["Amazon S3"],
          "Metrics": {"UnblendedCost": {"Amount": "30.00", "Unit": "USD"}}
        }
      ]
    }
  ]
}

Common Pitfalls

Many users forget to stop or delete unused resources, which leads to ongoing charges. Another mistake is not using Reserved Instances or Savings Plans for predictable workloads, missing out on discounts. Also, ignoring cost monitoring tools can cause surprises in bills.

bash

### Wrong: Leaving instances running when not needed
aws ec2 start-instances --instance-ids i-1234567890abcdef0

### Right: Stop instances when idle
aws ec2 stop-instances --instance-ids i-1234567890abcdef0

Quick Reference

• Use Reserved Instances or Savings Plans for steady workloads.
• Right-size your instances to match actual needs.
• Turn off or delete unused resources immediately.
• Use AWS Cost Explorer to track and analyze spending.
• Enable Auto Scaling to adjust capacity automatically.

Key Takeaways

Right-size and stop unused AWS resources to avoid unnecessary charges.

Use Reserved Instances or Savings Plans for predictable workloads to save money.

Regularly monitor your AWS spending with AWS Cost Explorer.

Enable Auto Scaling to match resource use with demand automatically.

Review your AWS usage monthly to find new cost-saving opportunities.