GCP free tier and credits - Step-by-Step Execution

Process Flow - GCP free tier and credits

Start: New GCP User

↓

Sign up for GCP Account

↓

Receive Free Tier Access

↓

Get $300 Credits for 90 Days

↓

Use Free Tier Services + Credits

↓

Credits Deplete or 90 Days End?

No→Continue Using Free Tier

Yes↓

Billing Starts for Paid Usage

↓

End or Upgrade Plan

This flow shows how a new GCP user signs up, gets free tier access and credits, uses them, and then either continues free or starts paying.

Execution Sample

GCP

User signs up -> Gets $300 credits -> Uses Compute Engine -> Credits reduce -> Credits end -> Billing starts

This sequence shows how credits are consumed and billing begins after credits or time run out.

Process Table

Step	Action	Credits Remaining	Free Tier Usage Allowed	Billing Status
1	User signs up	$300	Yes	No
2	User launches VM instance	$280	Yes	No
3	User uses storage service	$260	Yes	No
4	User runs data processing	$150	Yes	No
5	User uses services, credits reduce	$10	Yes	No
6	Credits reach $0 or 90 days end	$0	No	Yes
7	Billing starts for usage beyond free tier	$0	No	Yes

💡 Credits depleted or 90 days expired, billing starts for paid usage

Status Tracker

Variable	Start	After Step 2	After Step 4	After Step 6	Final
Credits Remaining	$300	$280	$150	$0	$0
Billing Status	No	No	No	Yes	Yes
Free Tier Usage Allowed	Yes	Yes	Yes	No	No

Key Moments - 2 Insights

Why does billing start even though free tier usage is still allowed?

Billing starts after credits run out or 90 days expire, but free tier usage continues with limits. See execution_table rows 6 and 7.

Do free tier services cost money after credits end?

No, free tier services remain free within their usage limits even after credits end, but usage beyond limits is billed. Refer to variable_tracker for free tier usage.

Visual Quiz - 3 Questions

Look at the execution table, what is the credits remaining after step 4?

A $260

B $150

C $10

D $0

💡 Hint

Check the 'Credits Remaining' column at step 4 in the execution_table.

At which step does billing start according to the execution table?

A Step 6

B Step 5

C Step 7

D Step 3

💡 Hint

Look for when 'Billing Status' changes to 'Yes' in the execution_table.

If the user never uses any services, what happens to the credits after 90 days?

A Credits double automatically

B Credits remain and billing never starts

C Credits expire and billing starts if usage occurs

D User is charged immediately

💡 Hint

Credits last 90 days; after that, they expire even if unused, see concept_flow.

Concept Snapshot

GCP Free Tier and Credits:
- New users get $300 credits valid for 90 days.
- Free tier services have usage limits always free.
- Credits reduce as you use paid services.
- After credits or 90 days end, billing starts for usage beyond free tier.
- Free tier usage continues within limits even after credits end.

Full Transcript

When you sign up for Google Cloud Platform, you get $300 in credits valid for 90 days. You can use these credits to try many services. As you use services like virtual machines or storage, your credits reduce. You can also use free tier services which have limits and remain free even after credits end. When your credits run out or 90 days pass, billing starts for any usage beyond free tier limits. This flow helps you understand how free tier and credits work together to let you try GCP safely.

Practice

1. What is the main difference between GCP's free tier and free credits?

easy

A. Free tier requires payment after 30 days; free credits never expire.

B. Free credits provide always-free resources; free tier is a one-time spending amount.

C. Both free tier and free credits are unlimited and always available.

D. Free tier provides always-free resources; free credits are one-time spending amounts.

Solution

1. Step 1: Understand GCP free tier

   The free tier offers limited resources that are always free, such as small VM instances or storage, available indefinitely.

2. Step 2: Understand GCP free credits

   Free credits are a one-time amount of money given to spend on any GCP service, usually for new users to try services without paying upfront.

3. Final Answer:

   Free tier provides always-free resources; free credits are one-time spending amounts. -> Option D

4. Quick Check:

   Free tier = always free, credits = one-time [OK]

Hint: Free tier is always free; credits are one-time money [OK]

Common Mistakes:

• Confusing free credits as always free
• Thinking free tier expires after 30 days
• Believing free credits are unlimited

2. Which of the following is a valid GCP free tier resource?

easy

A. A 1 vCPU, 0.6 GB RAM VM instance running 720 hours per month

B. A 1 vCPU, 3.75 GB RAM VM instance running 24/7

C. A 4 vCPU, 15 GB RAM VM instance running 100 hours per month

D. A 2 vCPU, 8 GB RAM VM instance running 1000 hours per month

Solution

1. Step 1: Recall GCP free tier VM limits

   The free tier includes an f1-micro VM instance with 0.6 GB RAM and 1 vCPU, available up to 720 hours per month (full month).

2. Step 2: Compare options to free tier specs

   A 1 vCPU, 0.6 GB RAM VM instance running 720 hours per month matches the free tier VM specs exactly; others exceed CPU, RAM, or hours limits.

3. Final Answer:

   A 1 vCPU, 0.6 GB RAM VM instance running 720 hours per month -> Option A

4. Quick Check:

   Free tier VM = f1-micro 0.6GB, 720 hrs [OK]

Hint: Free tier VM is small: 0.6GB RAM, 1 vCPU, 720 hrs/month [OK]

Common Mistakes:

• Choosing larger VM sizes thinking they are free
• Ignoring the 720 hours monthly limit
• Confusing vCPU counts

3. A new GCP user has $300 free credits valid for 90 days. They create a VM costing $0.05 per hour. How many hours can they run the VM before credits run out?

medium

A. 1500 hours

B. 3000 hours

C. 6000 hours

D. 9000 hours

Solution

1. Step 1: Calculate total hours from credits and cost

   Divide total credits ($300) by hourly cost ($0.05): 300 / 0.05 = 6000 hours.

2. Step 2: Check if hours fit within 90 days

   90 days x 24 hours = 2160 hours max usage in 90 days, so credits allow more hours than time limit.

3. Final Answer:

   6000 hours -> Option C

4. Quick Check:

   Credits ÷ cost/hr = hours [OK]

Hint: Divide credits by hourly cost for max hours [OK]

Common Mistakes:

• Ignoring the hourly cost and dividing incorrectly
• Confusing days with hours
• Not considering credit expiration

4. A user tries to apply free credits after the 90-day expiration period. What will happen?

medium

A. The credits will still apply without any issue.

B. The credits will be rejected and cannot be used.

C. The credits will apply but only partially.

D. The credits will convert to free tier resources.

Solution

1. Step 1: Understand credit expiration rules

   GCP free credits expire after the set period (usually 90 days) and cannot be used afterward.

2. Step 2: Determine system behavior on expired credits

   Once expired, credits are rejected and cannot be applied to any service usage.

3. Final Answer:

   The credits will be rejected and cannot be used. -> Option B

4. Quick Check:

   Expired credits = rejected [OK]

Hint: Expired credits cannot be used [OK]

Common Mistakes:

• Assuming credits auto-extend or convert
• Thinking partial credit use is allowed after expiry
• Confusing free tier with credits

5. A startup wants to use GCP free credits and free tier to run a small app continuously for 3 months. Which strategy best uses both to avoid charges?

hard

A. Run a free tier VM 24/7 and use free credits for extra storage and network usage.

B. Use free credits only for VM and ignore free tier resources.

C. Run multiple large VMs using free credits and free tier simultaneously.

D. Use free tier for all resources and save free credits for after 3 months.

Solution

1. Step 1: Understand free tier and credits usage

   Free tier provides always-free small VM and limited resources; free credits can pay for extra usage beyond free tier limits.

2. Step 2: Plan resource allocation

   Run the small app on free tier VM continuously to avoid charges, and use free credits for additional storage, network, or bigger VMs temporarily.

3. Final Answer:

   Run a free tier VM 24/7 and use free credits for extra storage and network usage. -> Option A

4. Quick Check:

   Combine free tier + credits smartly [OK]

Hint: Use free tier first, credits for extras [OK]

Common Mistakes:

• Ignoring free tier and using credits only
• Running large VMs exceeding free tier limits
• Saving credits without using them effectively