Save money by shutdown Azure VMs for the Reserved 1 year and 3 year costing

MS Techie 2,671 Reputation points

When we shutdown Azure VM during non-working hours , we can save some money .

Now , for the Azure VM , we have chosen the Reserved Pricing of 1 year or 3 years , then if we shutdown VMs during non-working hours , will we save money ?

Please help

SQL Server on Azure Virtual Machines
Azure Virtual Machines
Azure Virtual Machines
An Azure service that is used to provision Windows and Linux virtual machines.
6,807 questions
Azure Cost Management
Azure Cost Management
A Microsoft offering that enables tracking of cloud usage and expenditures for Azure and other cloud providers.
1,844 questions
0 comments No comments
{count} votes

Accepted answer
  1. kobulloc-MSFT 22,066 Reputation points Microsoft Employee

    Expanding on what @Andreas Baumgarten has said, reservation discounts assume 24 hour a day, 7 day a week use and are a "use-it-or-lose-it" approach to billing that allows you to make upfront commitments for a discount. This is why you'll see an hour field included in the price calculator for Pay as you go prices (which defaults to 730 hours in a month) but not for Reserved prices.

    Price calculator example for the same VM with 365 hours, 700 hours, and 1 year reserved (monthly):


    A common example for the reservation discount is someone that typically uses several VMs continuously, say between 300 and 400 VMs on a monthly basis. The first 300 VMs are a relatively safe bet for Reservation pricing while the remaining 0-100 VMs that fluctuate based on traffic may end up as Pay as you go pricing.

    In that scenario, turning off VMs when not in use can save you money as long as you are using over 300 VMs because it would save on Pay as you go pricing for matching resources.

    Additional Reading:

    2 people found this answer helpful.

2 additional answers

Sort by: Most helpful
  1. Andreas Baumgarten 91,921 Reputation points MVP

    Hi @MS Techie ,

    here is a good description how the reserved instances discount is applied to virtual machines:

    You won't save money if you shutdown the VMs, because the reserved instance can't be applied to a VM in the same scope (because the is no VM in the same VM series)
    You will save money if sou shutdown the VM if the reserved instance could be applied to another VM (running) within the same VM series.


    (If the reply was helpful please don't forget to upvote and/or accept as answer, thank you)

    Andreas Baumgarten

    1 person found this answer helpful.
    0 comments No comments

  2. Igor Valsichi 1 Reputation point

    Hi Guys!!

    I would like to understand my case
    I have a reservation for B2MS and want to upgrade it still using the discount, I can only go UP using family B?

    Also, if I keep that B2MS and create another one using b2ms.
    Will the second VM have the same discount?

    Eg: 100$ for 1 b2ms using reservation ... so 200$ for 2 b2ms with reservartion of only 1?

    And what if I decide to use both but for 12 hours each? would I pay the normal amount of 1 reservation like if I had just one?

    thank you so much