Azure Serverless – Cost Management

Overview
Pricing Model
Tools & Reports
FAQ

Understanding Cost Management for Serverless

Serverless services such as Azure Functions, Logic Apps, and Event Grid are billed based on execution counts, duration, and resource consumption. Proper cost management ensures you maximize value while staying within budget.

Key Metrics

  • Execution Count – Number of times a function is triggered.
  • Memory & CPU – Allocated resources per execution.
  • Duration – Execution time measured in milliseconds.
  • Data Transfer – Inbound/outbound network usage.

Serverless Pricing Model

Azure provides a consumption-based pricing model with a free grant each month.

Service Free Tier Pay-As-You-Go
Azure Functions 1M executions, 400,000 GB‑s, 5 GB outbound data $0.20 per million executions + $0.000016 per GB‑s
Logic Apps (Standard) 200 runs per month $0.000025 per action + connector costs
Event Grid 100,000 operations $0.60 per million operations

Tools & Reports

Leverage Azure native tools to monitor, analyze, and optimize costs.

  • Azure Cost Management + Billing – Centralized view of spend across subscriptions.
  • Azure Advisor – Recommendations for cost optimization.
  • Metrics Explorer – Real‑time function execution metrics.
  • Pricing Calculator – Estimate future costs.

Sample Cost Report (last 30 days)

Frequently Asked Questions

How can I avoid unexpected spikes? +

Implement throttling, set maximum concurrency, and use Azure Functions Premium Plan for predictable workloads.

What is the best way to monitor serverless spend? +

Set up cost alerts in Azure Cost Management, and enable Application Insights for detailed per‑function usage.

Can I reserve capacity for serverless? +

For Azure Functions you can use the Premium or Dedicated (App Service) plans which allow you to reserve capacity and gain predictable pricing.