AzureHow-ToBeginner · 4 min read

How to Set Budget in Azure: Step-by-Step Guide

To set a budget in Azure, use the Azure Cost Management service to create a budget that tracks your spending against a set amount. You define the budget scope, amount, and alerts to get notified when costs approach or exceed your limit.

📐

Syntax

Creating a budget in Azure involves specifying the following key parts:

Scope: The subscription or resource group the budget applies to.
Amount: The maximum cost you want to allow.
Time period: The duration for the budget (monthly, quarterly, yearly).
Alerts: Notifications triggered when spending reaches certain thresholds.

You can create budgets via the Azure Portal, Azure CLI, or ARM templates.

bash

az consumption budget create --amount <amount> --time-grain <Monthly|Quarterly|Annually> --name <budget-name> --scope <scope> --category Cost

# Example parameters:
# --amount 1000
# --time-grain Monthly
# --name MyBudget
# --scope /subscriptions/{subscriptionId}
# --category Cost

💻

Example

This example creates a monthly budget of $500 for a subscription and sets alerts at 80% and 100% of the budget.

bash

az consumption budget create \
  --amount 500 \
  --time-grain Monthly \
  --name MyMonthlyBudget \
  --scope /subscriptions/00000000-0000-0000-0000-000000000000 \
  --category Cost \
  --notifications '{
    "Actual_GreaterThan_80_Percent": {
      "enabled": true,
      "threshold": 80,
      "contactEmails": ["user@example.com"]
    },
    "Actual_GreaterThan_100_Percent": {
      "enabled": true,
      "threshold": 100,
      "contactEmails": ["user@example.com"]
    }
  }'

Output

{ "id": "/subscriptions/00000000-0000-0000-0000-000000000000/providers/Microsoft.Consumption/budgets/MyMonthlyBudget", "name": "MyMonthlyBudget", "type": "Microsoft.Consumption/budgets", "properties": { "category": "Cost", "amount": 500, "timeGrain": "Monthly", "timePeriod": { "startDate": "2024-06-01T00:00:00Z", "endDate": null }, "notifications": { "Actual_GreaterThan_80_Percent": { "enabled": true, "threshold": 80, "contactEmails": ["user@example.com"] }, "Actual_GreaterThan_100_Percent": { "enabled": true, "threshold": 100, "contactEmails": ["user@example.com"] } } } }

⚠️

Common Pitfalls

Wrong scope: Setting the budget on the wrong subscription or resource group will not track the intended costs.
No alerts configured: Without alerts, you won't get notified when spending nears the budget.
Incorrect time grain: Choosing a time grain that doesn't match your billing cycle can cause confusion.
Missing permissions: You need proper permissions (Cost Management Contributor or Owner) to create budgets.

bash

## Wrong way: No alerts set
az consumption budget create --amount 300 --time-grain Monthly --name BudgetNoAlerts --scope /subscriptions/00000000-0000-0000-0000-000000000000 --category Cost

## Right way: Add alerts
az consumption budget create --amount 300 --time-grain Monthly --name BudgetWithAlerts --scope /subscriptions/00000000-0000-0000-0000-000000000000 --category Cost --notifications '{"Actual_GreaterThan_90_Percent":{"enabled":true,"threshold":90,"contactEmails":["user@example.com"]}}'

📊

Quick Reference

Key tips for setting budgets in Azure:

Always verify the scope matches your billing target.
Set alerts to get notified early.
Use Azure CLI or Portal for easy setup.
Review budgets regularly to adjust for changes.

✅

Key Takeaways

Set budgets in Azure Cost Management to control cloud spending effectively.

Define the correct scope, amount, time period, and alerts for your budget.

Use Azure CLI or Portal to create and manage budgets easily.

Configure alerts to get notified before overspending occurs.

Ensure you have the right permissions to create budgets.