Percent of Compute Spend Covered by Commitment Discounts
Definition
Measures the percentage of compute effective cost (excluding Spot) covered by commitment discount for the previous month.
Formula, as published
Compute Cost after Commitment Discount / On-Demand Compute Cost
- Data sources:
- CSP Billing Data
Calculate it
Example values to start with; replace them with yours.
Where this calculator differs: The library publishes the formula as compute cost after commitment discount divided by on-demand compute cost, which measures the discount rather than the coverage its name and definition describe. This calculator follows the name, as the FOCUS coverage use case does: covered usage over all eligible usage, both at on-demand rates.
How to measure it
Coverage answers how much of the usage that could run under a commitment actually did. Measure both sides at on-demand rates: covered usage counted at its discounted price understates coverage by exactly the size of the discount.
Leave unused commitment out of both sides. It is a utilization problem, and counting it here makes an over-bought portfolio look well covered.
FOCUS columns: CommitmentDiscountId, ContractedCost, PricingCategory, CommitmentProgramEligibilityDetails
Coverage, utilization, effective savings rate and what expires next, from your own bill.
More Rate Optimization KPIs
Definition and formula: Percent of Compute Spend Covered by Commitment Discounts, 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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