Analyze the effectiveness of your spend-based committed use discounts

Overview

Spend-based committed use discounts (CUD) provide a discount in exchange for your commitment to spend a minimum amount for a service in a particular region. The discount applies to all of your vCPU and memory usage for the service.

Understanding your bill

Google Cloud uses a balance sheet format for your bill:

  1. You are billed a commitment fee, which is the discounted cost of your covered usage. You are billed this fee on a recurring basis, regardless of your usage.
  2. You are billed for the standard on-demand costs for resources that you consume.
  3. You receive committed use discount credits that appear in your bill as negative costs. These offset the portion of your eligible on-demand charges covered by the commitment.

The net impact of these three components is that you receive a discount on the usage covered by your commitment. The sum of your commitment fee (1) and committed use discount credits (3) equals the savings from your committed use discounts.

Example of usage equaling commitment

This example shows a Cloud Billing account where the spend-based committed use discount equals the usage for the one-hour period.

You purchase a one-year commitment for $50/hour of on-demand spend on Cloud SQL databases in the us-central-1 region. This one-year commitment gives you a 25% discount on covered usage, resulting in your net cost being $37.50/hour.

  1. You are charged a $37.50 commitment fee.
  2. You are charged $50 of on-demand costs for the one hour.
  3. You receive $50 in credit that offsets your $50 of on-demand costs.

Total costs = $37.50 + $50 - $50 = $37.50

In this example, your committed use discount covers all of your usage and there is no overage. Your final cost for the hour is $37.50 with the committed use discount. Without the discount, the total cost for the hour would have been $50.

Example of using more than commitment

This example shows a Cloud Billing account where the actual usage is more than the spend-based committed use discounts purchased. This results in an overage, where you pay the on-demand rate for the amount beyond your commitment.

You purchase a one-year commitment for $40/hour of on-demand spend on Cloud SQL databases in the us-central-1 region. This one-year commitment gives you a 25% discount on covered usage, resulting in your net cost being $30/hour.

  1. You are charged a $30 commitment fee.
  2. You are charged $50 of on-demand costs for the one hour.
  3. You receive $40 in credit that offsets your $40 of on-demand costs.

Total costs = $30 + $50 - $40 = $40

In this example, your committed use discount covers some of your usage. You paid $10 in overage at the on-demand rates and received a 25% discount on the $40 of on-demand equivalent costs covered by your commitment. Your final cost for the hour is $40 with the committed use discount. Without the discount, the total cost for the hour would have been $50.

Example of using less than commitment

This example shows a Cloud Billing account where the actual usage is less than the spend-based committed use discounts purchased. This results in an unused portion of the commitment.

You purchase a one-year commitment for $60/hour of on-demand spend on Cloud SQL databases in the us-central-1 region. This one-year commitment gives you a 25% discount on covered usage, resulting in your net cost being $45/hour.

  1. You are charged a $45 commitment fee.
  2. You are charged $50 of on-demand costs for the one hour.
  3. You receive $50 in credit that offsets your $50 of on-demand costs.

Total costs = $45 + $50 - $50 = $45

In this example, your committed use discount covers all of your usage and there was no overage. However, you committed to $60 of on-demand equivalent spend and only spent $50, failing to use the last $10 of credit paid for. Your final cost for the hour is $45 with the committed use discount. Without the discount, the total cost for the hour would have been $50.

Understanding your invoice or statement

You can view all three components of the spend-based committed use discount on your invoice or statement.

  • Commitment fee - The SKU description begins with Commitment - dollar based. For example, the commitment fee for a Cloud SQL CUD in the us-central-1 region for 3 years would appear as Commitment - dollar based v1: Cloud SQL database in us-central1 for 3 years.
  • On-demand costs - Charges for your usage at the on-demand equivalent cost. For example, Postgres DB custom CORE running in Americas.
  • Credits - These offset the portion of your on-demand equivalent costs that are covered by your committed use discount.

Use the cost table report to view and download the cost details of your invoice or statement.

Access the documents page to find a Cloud Billing document such as an invoice or statement.

Access the transactions page to view your transaction history.

Understanding your Cloud Billing reports

Cloud Billing reports let you view your Google Cloud usage costs and credits to discover and analyze trends. The Cloud Billing reports provide a variety of user-configurable options to view the costs that are important to you, including options to view your credits.

To view the individual components that comprise your committed use discounts, group your costs by SKU. The default report view (not grouped by SKU) does not break out the CUD components but instead includes the net of the three components.

To view only your ongoing commitment fees, limit the report results to the relevant commitment fee SKUs using the SKUs filter. For example, select the SKUs filter and type Commitment [YOUR COMMITMENT TYPE].

Viewing CUD fees and credits in your data exports

If you are exporting your Cloud Billing data to BigQuery, you can use queries to analyze the data.

For examples of how you might use BigQuery queries to view your commitment fees and credits in your Cloud Billing data exports, see Committed use discount queries.

Support

If you have questions regarding committed use discounts on your bill, contact Cloud Billing Support for help.