Function pricing (consumption vs premium) in Azure - CLI Comparison

Introduction

Azure Functions lets you run small pieces of code without managing servers. You can choose how you pay: pay only when your code runs (consumption) or pay for reserved resources with extra features (premium). This helps control costs and performance.

When you want to pay only for the exact time your code runs to save money on small or infrequent tasks.

When your function needs to start instantly without delay, even after being idle for a while.

When your function requires more memory or CPU than the basic plan offers.

When you want to connect your function to a virtual network for security.

When you need to run your function continuously without scaling down to zero.

Commands

Create a Premium plan named myPremiumPlan in the eastus region with one worker. This plan reserves resources and supports premium features.

Terminal

az functionapp plan create --name myPremiumPlan --resource-group exampleResourceGroup --location eastus --number-of-workers 1 --sku EP1

Expected Output

{

  "id": "/subscriptions/xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx/resourceGroups/exampleResourceGroup/providers/Microsoft.Web/serverfarms/myPremiumPlan",

  "location": "eastus",

  "name": "myPremiumPlan",

  "sku": {

    "capacity": 1,

    "family": "EP",

    "name": "EP1",

    "size": "EP1",

    "tier": "Premium"

  },

  "type": "Microsoft.Web/serverfarms"

}

→

--sku EP1 - Specifies the Premium plan SKU

→

--number-of-workers 1 - Sets the number of reserved workers

Create a function app named myPremiumFunction using the Premium plan and a storage account. This deploys your function with premium pricing.

Terminal

az functionapp create --name myPremiumFunction --storage-account mystorageaccount --plan myPremiumPlan --resource-group exampleResourceGroup --runtime dotnet

Expected Output

{

  "id": "/subscriptions/xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx/resourceGroups/exampleResourceGroup/providers/Microsoft.Web/sites/myPremiumFunction",

  "name": "myPremiumFunction",

  "resourceGroup": "exampleResourceGroup",

  "type": "Microsoft.Web/sites"

}

→

--plan myPremiumPlan - Associates the function app with the Premium plan

→

--runtime dotnet - Sets the runtime stack for the function app

Create a function app named myConsumptionFunction without specifying a plan. This uses the Consumption plan, which bills only when functions run.

Terminal

az functionapp create --name myConsumptionFunction --storage-account mystorageaccount --resource-group exampleResourceGroup --runtime dotnet

Expected Output

{

  "id": "/subscriptions/xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx/resourceGroups/exampleResourceGroup/providers/Microsoft.Web/sites/myConsumptionFunction",

  "name": "myConsumptionFunction",

  "resourceGroup": "exampleResourceGroup",

  "type": "Microsoft.Web/sites"

}

→

--runtime dotnet - Sets the runtime stack for the function app

Check which plan the myPremiumFunction app is using to confirm it is on the Premium plan.

Terminal

az functionapp show --name myPremiumFunction --resource-group exampleResourceGroup --query serverFarmId

Expected Output

"/subscriptions/xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx/resourceGroups/exampleResourceGroup/providers/Microsoft.Web/serverfarms/myPremiumPlan"

→

--query serverFarmId - Filters output to show only the plan ID

Check which plan the myConsumptionFunction app is using to confirm it is on the Consumption plan (usually a dynamic plan).

Terminal

az functionapp show --name myConsumptionFunction --resource-group exampleResourceGroup --query serverFarmId

Expected Output

"/subscriptions/xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx/resourceGroups/exampleResourceGroup/providers/Microsoft.Web/serverfarms/ConsumptionPlan"

→

--query serverFarmId - Filters output to show only the plan ID

Key Concept

If you remember nothing else from this pattern, remember: Consumption plan charges only when your code runs, while Premium plan reserves resources for faster and more powerful execution.

Common Mistakes

Creating a function app without specifying a plan when premium features are needed.

The function app defaults to Consumption plan and misses premium features like VNET integration or always-on.

Always create or assign a Premium plan before creating the function app if premium features are required.

Using the Premium plan but setting number-of-workers to zero or not specifying it.

This can cause deployment failure or no reserved resources, defeating the purpose of the Premium plan.

Specify at least one worker when creating the Premium plan to reserve resources.

Summary

Create a Premium plan with reserved workers for advanced features and performance.

Create function apps either on Premium plan for reserved resources or without a plan for Consumption pricing.

Verify the plan assignment using az functionapp show to confirm pricing and features.

Practice

1. Which Azure Function pricing plan charges you only when your function runs, making it ideal for infrequent tasks?

easy

A. Dedicated App Service plan

B. Consumption plan

C. Premium plan

D. Enterprise plan

Solution

1. Step 1: Understand pricing models

   The Consumption plan charges based on actual function executions, so you pay only when your code runs.

2. Step 2: Compare with other plans

   The Premium plan and Dedicated plans have fixed costs regardless of usage, making them less ideal for infrequent tasks.

3. Final Answer:

   Consumption plan -> Option B

4. Quick Check:

   Pay per use = Consumption plan [OK]

Hint: Pay only when running = Consumption plan [OK]

Common Mistakes:

• Confusing Premium plan with Consumption plan
• Thinking Dedicated plan charges per use
• Assuming Enterprise plan is standard for functions

2. Which of the following is the correct way to describe the Premium plan pricing for Azure Functions?

easy

A. Fixed cost plus charges based on usage

B. You pay only when the function runs, no fixed cost

C. Free for all usage levels

D. Charges based on number of users

Solution

1. Step 1: Identify Premium plan pricing

   The Premium plan has a fixed monthly cost plus additional charges based on how much you use it.

2. Step 2: Eliminate incorrect options

   Consumption plan is pay-per-use only, so You pay only when the function runs, no fixed cost is wrong. There is no free unlimited usage or user-based pricing.

3. Final Answer:

   Fixed cost plus charges based on usage -> Option A

4. Quick Check:

   Premium = fixed + usage cost [OK]

Hint: Premium = fixed cost plus usage charges [OK]

Common Mistakes:

• Confusing Premium with Consumption plan pricing
• Thinking Premium plan is free
• Assuming pricing depends on users

3. You have an Azure Function running on the Consumption plan that executes 1 million times a month. Which statement best describes your billing?

medium

A. You pay a fixed fee plus a small charge per execution.

B. You pay a fixed monthly fee regardless of executions.

C. You pay only for the 1 million executions plus resource usage.

D. You pay nothing because Consumption plan is free.

Solution

1. Step 1: Understand Consumption plan billing

   Consumption plan charges based on the number of executions and resource consumption, no fixed fee.

2. Step 2: Analyze options

   You pay a fixed monthly fee regardless of executions. and C mention fixed fees which do not apply to Consumption plan. You pay nothing because Consumption plan is free. is incorrect because Consumption plan is not free.

3. Final Answer:

   You pay only for the 1 million executions plus resource usage. -> Option C

4. Quick Check:

   Consumption = pay per execution [OK]

Hint: Consumption plan charges per execution only [OK]

Common Mistakes:

• Assuming fixed monthly fee on Consumption plan
• Thinking Consumption plan is free
• Mixing Premium plan billing with Consumption

4. You deployed an Azure Function on the Premium plan but noticed unexpectedly high costs. What is a likely cause?

medium

A. Premium plan has a fixed cost plus usage, so fixed cost adds even if usage is low.

B. Premium plan is free for the first 1 million executions, so costs should be zero.

C. You forgot to enable the Consumption plan, so you are charged double.

D. You are charged only when the function runs, so high usage caused high cost.

Solution

1. Step 1: Understand Premium plan cost structure

   Premium plan includes a fixed monthly cost plus charges based on usage.

2. Step 2: Identify cause of high costs

   Even if usage is low, the fixed cost applies, which can cause unexpectedly high bills.

3. Final Answer:

   Premium plan has a fixed cost plus usage, so fixed cost adds even if usage is low. -> Option A

4. Quick Check:

   Premium fixed cost causes base charges [OK]

Hint: Premium plan always has fixed cost component [OK]

Common Mistakes:

• Thinking Premium charges only on usage
• Confusing Consumption plan with Premium
• Assuming Premium plan is free for some executions

5. You expect your Azure Function to have steady, high traffic with occasional spikes. Which plan should you choose to optimize cost and performance?

hard

A. Free tier, because it handles high traffic without cost

B. Consumption plan, because it charges only when functions run

C. Dedicated App Service plan, because it has no scaling limits

D. Premium plan, because it offers pre-warmed instances and scales smoothly

Solution

1. Step 1: Analyze workload pattern

   Steady high traffic with spikes needs consistent performance and quick scaling.

2. Step 2: Match plan features

   Premium plan provides pre-warmed instances to avoid cold starts and scales smoothly, fitting this pattern well.

3. Step 3: Eliminate other options

   Consumption plan may have cold starts causing delays. Dedicated plan is costly and less flexible. Free tier cannot handle high traffic.

4. Final Answer:

   Premium plan, because it offers pre-warmed instances and scales smoothly -> Option D

5. Quick Check:

   Steady high traffic = Premium plan [OK]

Hint: Steady high traffic? Choose Premium for performance [OK]

Common Mistakes:

• Choosing Consumption plan despite cold start delays
• Assuming Dedicated plan is best for all cases
• Thinking Free tier supports high traffic