Cloud Spend Percentage of Recurring Revenue
Definition
Leadership and Finance can use this KPI to measure actual cloud expenses vs. company revenue, on a monthly and/or annual basis - formula options for both are provided below.
Formula, as published
(Monthly total cloud invoice amount / Monthly Recurring Revenue) and/or (Annual total cloud invoice amount / Annual Recurring Revenue)
- Data sources:
- CSP Billing data, CSP FOCUS files
Calculate it
Example values to start with; replace them with yours.
How to measure it
The board-level unit cost: what the cloud takes out of every dollar of recurring revenue. Use the invoiced amount, as the library does, so it reconciles to finance.
Track the trend more than the level: what a healthy share is depends on the business model, and the library publishes no benchmark.
FOCUS columns: BilledCost, BillingPeriodStart
More Reporting & Analytics KPIs
Definition and formula: Cloud Spend Percentage of Recurring Revenue, FinOps KPI library, FinOps Foundation, licensed CC BY 4.0, read 16 Oct 2026. Changed: HTML removed, dashes and British spellings changed, formula split from its data sources and examples. The calculator and the notes are Finitizer’s.
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