Azure ยท Free tool
Azure Reservation ROI calculator
Plug in your pay-as-you-go spend on the targeted VM family, pick the term and payment option, and see what an Azure Reservation returns. Defaults reflect typical 2026 Azure list prices. Override any field if you have an EA or CSP quote.
Result
Adjust the inputs on the left to see your projected savings.
Monthly savings
$0
Effective discount applied
0%
Total commitment
$0
Up Front payment
$0
Net savings over term
$0
Break-even month
Month 1
How the math works
Eligible monthly spend is the PAYG spend on the targeted VM family times coverage. The discount applies to that eligible portion. Uncovered spend stays at PAYG rates and is excluded from savings.
Total commitment is eligible monthly spend times the discounted rate, multiplied by 12 for 1-year or 36 for 3-year. Azure Up Front pays the full commitment immediately. Monthly spreads the same amount evenly across the term at no extra cost.
VM Reservations lock you to a specific VM size, region, and OS for the higher discount. Compute Savings Plans allow flexibility across families and regions in exchange for a lower discount. Defaults reflect Azure list prices for Linux VMs in West Europe as of 2026.
Math looks right. Now check your account for unused Reservations, expired Reservations that auto-converted to PAYG, VMs running outside the reserved size, and Hybrid Benefit attribution. Cloud Horizon scans for all of it inside the free 14-day audit, read-only access, no card.
Frequently asked
Reservations vs Compute Savings Plans?
Reservations lock a specific VM size, region, and OS for 1 or 3 years and save up to ~72%. Savings Plans for compute apply across VM sizes inside a chosen scope, saving roughly 11 to 65% in exchange for the flexibility. Stable workloads (databases, AVD session hosts) win with Reservations. Variable compute fleets win with Savings Plans.
Up Front or Monthly?
Azure quotes the same total either way. Pick Monthly for cash flow, Up Front when finance prefers a single line item or your CSP has a small prepay incentive.
Does Hybrid Benefit stack?
Yes. Azure Hybrid Benefit (AHB) for Windows Server and SQL Server reduces the per-VM rate further. The calculator does not factor AHB in by default. Override the discount field with the AHB-adjusted rate from the Azure pricing calculator if it applies.
What if my MCA discount is higher?
Microsoft Customer Agreement and Enterprise Agreement customers often see additional negotiated discounts. Override the discount field with the figure the Azure portal shows for your tenant.
If a calculator does its job
It tells you the answer. Then it gets out of the way.
Calculators model Reservations in isolation. The next question is what your real subscription looks like: unused Reservations, drift between SKUs, AHB attribution gaps. Cloud Horizon scans for all of it.