Overview of Azure VM Pricing

Azure Virtual Machines (VMs) offer flexible, scalable computing capacity in the cloud. The pricing for Azure VMs is primarily based on the size and type of the VM, the operating system, the region, and the duration for which the VM is running. Additional costs may apply for storage, networking, and other services.

Compute Pricing: Pay-as-you-go

This is the most common pricing model. You pay for the compute time your VM is allocated. Prices vary significantly based on the VM series and size.

VM Series vCPU RAM (GiB) Estimated Monthly Cost (USD) Notes
B-series (Burstable) 1 1 $20 - $40 Good for workloads that don't need full CPU performance all the time.
D-series (General Purpose) 2 8 $60 - $100 Balanced compute and memory.
E-series (Memory Optimized) 4 32 $120 - $200 For memory-intensive applications.
F-series (Compute Optimized) 4 8 $100 - $160 High CPU-to-memory ratio.
N-series (GPU Enabled) 8 56 $500 - $1500+ For graphics or compute-intensive workloads like AI/ML.

Actual pricing varies by region and specific VM size. Refer to the official Azure pricing page for the most up-to-date information.

Reserved Virtual Machine Instances

For a commitment of 1 or 3 years, you can significantly reduce your VM costs by purchasing Reserved VM Instances (RIs). This offers a substantial discount compared to pay-as-you-go pricing.

Benefits:

  • Predictable costs for stable workloads.
  • Up to 72% savings compared to pay-as-you-go.
  • Can be combined with Azure Hybrid Benefit for Windows Server and SQL Server.

Azure Hybrid Benefit

If you have existing on-premises licenses for Windows Server or SQL Server with Software Assurance, you can use Azure Hybrid Benefit to save on costs when running those workloads on Azure VMs. This allows you to pay only for the base compute charges.

Spot Virtual Machines

Azure Spot VMs offer unused Azure compute capacity at a significant discount (up to 90%). These VMs can be evicted if Azure needs the capacity back, making them ideal for fault-tolerant, interruptible workloads like batch processing, rendering, and dev/test.

Additional Costs

Remember to factor in costs for:

  • Storage: Managed Disks (Standard HDD, Standard SSD, Premium SSD, Ultra Disk)
  • Networking: Data transfer, Load Balancers, VPN Gateway
  • Operating System Licenses: For Windows VMs, if not using Azure Hybrid Benefit.
  • Other Services: Azure Backup, Azure Site Recovery, etc.

Calculate Your Estimated Costs

Use the Azure Pricing Calculator to get a detailed estimate for your specific VM deployment.

Go to Pricing Calculator