AWS Cost Optimization for Startups: Save 40% on Your Bill
Practical AWS cost optimization strategies for startups. Learn to cut cloud costs by 30-50% without sacrificing performance or reliability.
Quick Wins (Do These Today)
Most AWS accounts have hundreds of dollars in obvious waste. Here's where to look:
Unattached EBS volumes
Go to EC2 → Volumes → filter by "available." These are disks attached to nothing, charging you money for storing air. Delete them.
Typical savings: €50-200/month
Old snapshots
EC2 → Snapshots → sort by date. Anything older than 90 days that isn't part of a backup strategy can probably go.
Typical savings: €20-100/month
Unused Elastic IPs
You pay for unattached elastic IPs. If you're not using it, release it.
Savings: €3.60/month each (adds up fast)
Stopped instances still costing money
A stopped instance doesn't charge for compute, but its EBS storage still costs money. If you're not using it, terminate it.
Right-Sizing Your Infrastructure
This is where real money lives.
Check CloudWatch metrics for your EC2 instances. If average CPU utilization is under 20% over two weeks, you're probably overprovisioned.
| Current | Right-sized | Monthly savings |
|---|---|---|
| t3.large | t3.medium | ~€25 |
| t3.xlarge | t3.large | ~€50 |
| m5.xlarge | m5.large | ~€75 |
| r5.large | r5.medium | ~€60 |
Multiply by the number of instances. A 50-server fleet that's 2x overprovisioned is throwing away thousands monthly.
Same applies to RDS. Database instances are often oversized "just in case." Check CloudWatch—if your database isn't breaking a sweat, it's too big.
Reserved vs On-Demand
If you've been running the same instances for 3+ months and plan to continue, you're wasting money on on-demand pricing.
| Commitment | Discount | Best for |
|---|---|---|
| No commitment | 0% | Experiments, short projects |
| 1-year reserved | 30-40% | Established workloads |
| 3-year reserved | 50-60% | Core infrastructure |
| Savings Plans | 20-30% | Variable workloads |
Start conservative. Reserve your most stable workloads for 1 year. Don't lock into 3-year commitments until you're confident your architecture is stable.
Savings Plans are more flexible than Reserved Instances—they apply across instance families. Good if your exact instance types might change.
Database Costs
RDS is often 40-50% of the AWS bill. Here's how to cut it:
Aurora Serverless v2 scales automatically. Great for variable traffic—you're not paying for peak capacity during quiet hours.
Read replicas for read-heavy workloads. One large instance handling reads and writes costs more than a medium primary with a medium replica.
Single-AZ for dev/staging. Multi-AZ doubles your cost. Only use it for production.
| Scenario | Multi-AZ? | Why |
|---|---|---|
| Production database | Yes | Worth the cost for uptime |
| Staging environment | No | Acceptable downtime risk |
| Dev databases | No | Nobody cares if it goes down |
Consider managed alternatives. Sometimes RDS is overkill. PlanetScale, Supabase, or even managed MongoDB can be cheaper for specific use cases.
Ongoing Habits
Cost optimization isn't a one-time project. Build these habits:
Monthly bill review
15 minutes, first week of each month. Look at Cost Explorer, identify anything unexpected, dig into spikes.
Budget alerts
Set alerts at 50%, 80%, and 100% of expected spending. AWS Budgets makes this easy.
Tagging everything
Tags let you see which project or team is spending what. Without tags, cost allocation is guesswork.
Rightsizing reports
AWS Cost Explorer has built-in rightsizing recommendations. Check them quarterly.
What we typically find
When we audit a startup's AWS account, we usually find 25-40% savings available. Common culprits:
| Issue | Frequency | Typical savings |
|---|---|---|
| Oversized instances | Very common | 20-30% of compute |
| No reserved capacity | Very common | 30-40% of stable workloads |
| Old/unused resources | Common | €100-500/month |
| Wrong database tier | Common | 30-50% of database costs |
| Overprovisioned dev/staging | Very common | 40-60% of non-prod |
If your AWS bill feels too high, it probably is. Happy to take a look.
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