AWS billing guide for the UK (2025)

If keeping your AWS costs under control feels like a constant battle, you're in good company. Reportedly, cutting down on cloud waste is a top priority for most cloud users this year. For UK businesses and self-employed professionals just getting started, AWS Billing and Cost Management provides a clear path forward. Plus, a Wise Business account can help your team stay in control of international spending. Read on to learn more in this AWS billing guide.

💡 Learn more about Wise Business

Table of contents

What is AWS Billing? Tracking what you use and when How AWS charges for services How and when you get billed AWS pricing overview On-Demand – Pay for what you use, when you use it Free Tier – Start small, risk-free Reserved Instances – Commit and save more Savings Plans – More flexibility, similar savings Spot Instances – Big savings with some trade-offs Dedicated Hosts – Full control over physical servers AWS Cost Management tools AWS Cost Explorer AWS Budgets AWS Cost Anomaly Detection AWS Cost Optimisation hub AWS Billing Conductor Amazon Q Developer Best practices for optimising AWS billing Common billing issues and solutions Control your AWS costs with smart choices and Wise Business FAQs - AWS Billing How can I view and understand my AWS charges? Can I set alerts to avoid overspending? What happens if my bill shows unexpected spikes? Can I share my AWS bill across multiple departments or clients? Is there a way to forecast future AWS costs?

What is AWS Billing?

AWS Billing is the system Amazon Web Services uses to track and charge¹ for everything you use across its platform. AWS tracks your usage in real time and charges you based on that, no matter if you're running a small app or a large cloud system. At its core, it brings together three main components – usage, pricing, and payment².

Tracking what you use and when

Every AWS service you use (it can be EC2, S3, Lambda, or anything else) is metered. That means AWS tracks how much you use, how long you use it, and in which region. For example, if you spin up a virtual server for 5 hours, you're billed only for those 5 hours.

How AWS charges for services

Most services work on a pay‑as‑you‑go model, so you only pay for what you use without having to sign any long‑term contracts. There are also saving options like Reserved Instances and Savings Plans³. For data storage and transfer, pricing often uses tiered or volume-based rates.

How and when you get billed

At the end of each billing cycle, AWS issues an invoice (PDF) and charges your default payment method. You can pay manually, use automatic payments, or consolidate charges across multiple accounts via AWS Organisations⁴.

AWS pricing overview

AWS offers a flexible approach to pricing, which is great news – until you're faced with figuring out which model actually suits your business. You might just be getting started, or you want a way for your business to grow efficiently. Either way, choosing the right one among the different AWS pricing models can help you save money without sacrificing performance.

On-Demand – Pay for what you use, when you use it

This model works a lot like your electricity bill. You're charged by the second or hour, depending on the service, and there's no need to commit long term⁵. It's perfect for short-term projects or unpredictable workloads where flexibility matters.

Free Tier – Start small, risk-free

The AWS Free Tier⁶ gives new users a chance to try out services without paying a penny. Some services are free for 12 months, while others have limited free usage every month. It's a good way to explore AWS without worrying about surprise charges.

Reserved Instances – Commit and save more

If you know you'll need certain resources for a while – say, a year or more – Reserved Instances can save you up to 72% compared to On-Demand⁷. You pay upfront, monthly, or a mix of both, and in return, you get a lower hourly rate.

Savings Plans – More flexibility, similar savings

Savings Plans⁸ are AWS's answer to businesses that want discounts like Reserved Instances but with more room to move around. You commit to a set spend per hour, and in exchange, you get up to 66% off⁹. The big win? You're not tied to specific instance types.

Spot Instances – Big savings with some trade-offs

Need to run flexible, non-essential tasks like data analysis or batch processing? Spot Instances lets you use AWS's spare capacity at up to 90% off¹⁰. Just know they can be interrupted at any time, so they're not ideal for critical workloads.

Dedicated Hosts – Full control over physical servers

For businesses with strict compliance or licensing needs, Dedicated Hosts offer physical servers¹¹ reserved just for you. They're more expensive but give you hardware-level visibility and control.

💡 Read more: AWS Pricing Model and Plan Guide

AWS Cost Management tools

Keeping cloud costs under control is a team effort, but luckily, AWS gives you some solid tools to make it a lot easier. It's the same for those working as a self-employed professional in the UK or those managing a growing business – cloud expenses can easily creep up unnoticed.

AWS Cost Explorer

This intuitive dashboard shows your cost and usage data, organised by service, account, tag, or region. It lets you explore trends, forecast future spending, and even get recommendations for Reserved Instances and Savings Plans.

AWS Budgets

Set budgets based on total costs, usage levels, or specific resource tags. As soon as you hit your threshold, AWS will ping you so you can act before you overspend⁴.

AWS Cost Anomaly Detection

This machine-learning service keeps an eye on unusual spending patterns and fires alerts via email or Amazon SNS (or even your Slack). It's great for catching unexpected costs early.

AWS Cost Optimisation hub

This hub collects recommendations from across AWS. It includes rightsizing instances, cleaning up unused resources, and using discount options such as Savings Plans or Reserved Instances.

AWS Billing Conductor

Ideal for organisations that need to allocate costs to teams or clients. Billing Conductor¹² lets you create customised billing views. You can also apply different rate models while keeping your actual AWS bill unchanged.

Amazon Q Developer

This conversational tool¹³ combines Cost Explorer, Cost Optimization Hub, and more. Just ask, "Which service cost me the most last month?" and it gives you answers, complete with data source links.

Best practices for optimising AWS billing

If you need to keep your AWS costs down, you won't have to cut corners. With a few smart habits, you can get more value from the cloud without overspending. The key is to review your usage regularly, match the right services to your needs, and take advantage of cost-saving options like Savings Plans or Reserved Instances.

If you need more ways to stay in control, you can easily keep your payment methods organised. If you're paying for AWS or other international tools, using a Wise Business account can help you reduce currency conversion fees and simplify cross-border payments. It lets you hold and manage 40+ currencies, so it helps avoid hidden fees.

Here are some practical ways to optimise your AWS billing:

• Use cost allocation tags to track spending by team, project, or client.
• Regularly review idle resources. Things like unattached EBS volumes or old snapshots can add up quickly.
• Choose the right pricing model. Mix and match On-Demand, Reserved, and Spot Instances where it makes sense.
• Set budgets and alerts with AWS Budgets to avoid nasty surprises.
• Monitor trends in usage with Cost Explorer or Amazon Q Developer to spot patterns early.

Common billing issues and solutions

Even experienced AWS users run into billing headaches now and then. The good news is that most of them are fixable if you know what to look for. If you have any unexpected charges, it usually comes down to forgotten resources running in the background. Head to your billing dashboard and check for old EC2 instances, unattached storage, or unused load balancers.

Spending more than forecasted? Forecasts are only as good as your tagging and reporting. Make sure all your services are properly tagged so you can track costs accurately by team or project.

If you're confused by your invoice, you're not alone – AWS invoices can be long and technical. Try using the Billing Conductor to generate clearer views by business unit, or use Amazon Q Developer to get plain-language summaries.

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Control your AWS costs with smart choices and Wise Business

AWS offers unmatched flexibility, but that flexibility can come with complex bills if you're not keeping an eye on things. However, if you understand how AWS billing works, explore the right pricing models, and use the built-in cost management tools, you can avoid waste, stay on budget, and get more value from every pound spent.

Optimising your cloud spend is always about making smarter decisions. And with a Wise Business account, you can hold and exchange 40+ currencies all in one place. You can send payments to 140+ countries and get local account details to get paid in 8+ currencies like a local.

Whenever you need to send, spend or exchange foreign currencies, you’ll benefit from the mid-market exchange rate, with low, transparent fees.

When you open a Wise Business account, you’ll benefit from all of these useful features:

• No monthly fees or minimum balance requirements
• Debit and expense cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 people at once with the Wise Batch Payments feature
• Integrate with your favourite cloud accounting solutions, and use the Wise API for automation and streamlining workflow
• Use the Wise Interest feature to make your money work harder when you’re not using it.

It’s quick and easy to open a Wise Business account, with a fully digital application, verification and on-boarding process. Check out the requirements here.

Get started with Wise Business 🚀

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FAQs - AWS Billing

Here are some of the top questions:

How can I view and understand my AWS charges?

Head to the Bills page in the Billing Console to see your charges broken down by service, region, or account. You can download detailed PDFs or CSVs and compare "cash" (actual paid) vs "amortised" views for upfront discounts like Savings Plans. It's a clear snapshot of what you're paying for and where.

Can I set alerts to avoid overspending?

AWS Budgets lets you set cost or usage thresholds and alerts you when you're near or over budget. You can base alerts on total spend or specific services, accounts, or tags. It's a simple, effective safety net against bill shock.

What happens if my bill shows unexpected spikes?

Unexpected spikes are often caused by idle resources or auto-scaling events. Try to use Cost Explorer to spot where the spike came from and check for untagged, unused services like idle EC2 instances or unattached storage. The best thing to do is to set up Cost Anomaly Detection to get alerts next time AWS spots unusual usage.

Can I share my AWS bill across multiple departments or clients?

You can use AWS Cost Allocation Tags and Billing Conductor¹² to break down costs by team, project, or customer. It's especially useful for agencies or businesses running multiple accounts. You'll get clearer insights into who's spending what without needing to guess.

Is there a way to forecast future AWS costs?

AWS Cost Explorer includes a forecasting feature that estimates future spending based on your current usage patterns. It's not perfect, but it gives you a ballpark idea that helps plan monthly budgets or anticipate growth.

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Sources used in this article:

1. https://aws.amazon.com/aws-cost-management/aws-billing/
2. https://www.nops.io/glossary/what-is-aws-billing-and-cost-management/
3. https://aws.amazon.com/getting-started/cost-optimization-essentials/
4. https://docs.aws.amazon.com/awsaccountbilling/latest/aboutv2/billing-what-is.html
5. https://aws.amazon.com/ec2/pricing/on-demand/
6. https://aws.amazon.com/free/?all-free-tier.sort-by=item.additionalFields.SortRank&all-free-tier.sort-order=asc&awsf.Free%20Tier%20Types=*all&awsf.Free%20Tier%20Categories=*all
7. aws.amazon.com/ec2/pricing/reserved-instances/
8. https://aws.amazon.com/savingsplans/
9. https://spot.io/resources/aws-ec2-pricing/what-are-aws-savings-plans/
10. https://aws.amazon.com/ec2/spot/
11. https://aws.amazon.com/ec2/dedicated-hosts/
12. https://aws.amazon.com/aws-cost-management/aws-billing-conductor/
13. https://aws.amazon.com/q/developer/

Sources last checked on date: 30-Jun-2025