AWS Pricing Guide 2026: EC2, S3 & Costs
Table of Contents
EC2 Pricing Explained (On-Demand)
Amazon EC2 (Elastic Compute Cloud) allows you to rent virtual servers. With On-Demand pricing, you pay for compute capacity by the second, with no long-term commitment. This is the most flexible but most expensive option.
Price is determined by:
- Instance Type: The CPU, RAM, and Storage capacity.
- Region: Where the server is physically located.
- OS: Linux is cheaper than Windows (due to licensing).
Instance Types: T3 vs M5 vs C5
Choosing the right family is crucial for performance and cost.
- General Purpose (T3, M5, M6g): Balanced resources. T3 instances are "burstable" (cheapest), ideal for websites that aren't constantly busy. M5 instances provide consistent performance.
- Compute Optimized (C5, C6g): High performance processors. Ideal for batch processing, media transcoding, and scientific modeling.
- Memory Optimized (R5, R6g, X1): High RAM. Ideal for databases (MySQL, PostgreSQL) and in-memory caches (Redis).
S3 Storage & Data Transfer
S3 costs are often underestimated because they consist of three parts:
- Storage: What you pay to keep the files there (e.g., $0.023 per GB).
- Requests: You pay a tiny amount for every PUT, COPY, POST, and GET request.
- Data Transfer Out: The hidden killer. Transferring data into AWS is free. Transferring data out to the internet costs money (approx $0.09 per GB after the first 100GB).
Why Regions Matter
Costs vary significantly by region due to local taxes, electricity, and real estate costs.
- Cheapest Regions: typically US East (N. Virginia), US East (Ohio), and US West (Oregon).
- Premium Regions: South America (São Paulo) and parts of Asia can be 50%+ more expensive.
Always host your resources in the region closest to your users for speed, but consider cost if latency isn't critical.
How to Save (Spot & Savings Plans)
Never run workloads 24/7 on On-Demand pricing if you can avoid it.
- Savings Plans (Compute): Commit to a specific $ / hour usage for 1 or 3 years. Saves up to 66%.
- Spot Instances: Bid on unused AWS capacity. Can save up to 90%, but AWS can terminate your instance with 2 minutes' notice. Great for fault-tolerant background tasks.