Work out reserved capacity break even instantly with clear inputs, formula shown and shareable results.
A partial-upfront reservation breaks even once the accumulated hourly saving covers the upfront payment. Expressing that as a utilisation percentage of the term is the useful form: if break-even needs 45 percent utilisation and the instance runs continuously, the reservation is clearly right; if it runs eight hours a day, it is not.
Reservation break-even
hourly saving = on-demand - reserved hourly; break-even hours = upfront / hourly saving; break-even utilisation = break-even hours / term hours
Convertible reservations can be exchanged for a different family at a smaller discount, and savings plans apply across families. Standard reservations can only be sold on the marketplace where one exists.
Savings plans are more flexible and usually the default choice. Reservations still win where capacity reservation in a specific zone is needed as well as the discount.