Virtual Machines costs
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Estimate your Azure bill in three steps
Configure your resources
Select your Azure VM series (B, D, E series) or Storage Account type and region. Prices vary by location — East US is usually the baseline.
Set usage and quantity
Select hours or days of operation and instance count for your Azure workloads. Full-time production runs 730 hours per month.
Compare and decide
Compare 1-year and 3-year Azure Savings Plans against On-Demand pricing to find optimal savings for your infrastructure.
PRICING MODEL
How Azure Virtual Machines pricing works
Azure prices virtual machines per hour at a rate set by the series, the size within that series, and the region. Series target distinct workload shapes: B for burstable low-baseline work, D for general purpose, E for memory-heavy applications, F for compute-bound processing, L for local storage throughput, and N for GPU workloads. Choosing the wrong series is usually more expensive than choosing the wrong size, because the price per vCPU differs substantially between them.
Two Azure-specific factors move the bill more than size does. The first is licensing: a Windows Server VM costs materially more per hour than the identical Linux VM, and Azure Hybrid Benefit lets you apply existing Windows Server or SQL Server licences to remove much of that premium. The second is commitment, through one and three year Reserved Instances or an Azure savings plan for compute. Managed disks, public IP addresses, and outbound bandwidth are billed separately from the VM itself.
What drives your Virtual Machines bill
Series and size
B, D, E, F, L, and N series carry different rates per vCPU. A memory-optimised E series costs considerably more than a D series with the same core count.
Region
The same VM size is priced differently by region. East US and West Europe are typically among the cheaper options, while smaller and more remote regions carry a premium.
Operating system licensing
Linux VMs carry no licence charge. Windows Server adds a per-core licence on top of the compute rate, which weighs proportionally heavier on smaller VM sizes.
Reservations and savings plans
One and three year Reserved Instances discount steeply for a specific size in a region. An Azure savings plan for compute trades some of that discount for flexibility across sizes.
Disks and bandwidth
Managed disks are billed on provisioned size and performance tier whether or not the VM runs. Outbound data transfer is billed per GB and is not included in the VM rate.
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