AWS Lambda Pricing: An Estimated Cost To Run a Serverless App

By AppsDevPro | Saturday, November 25th, 2023

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Quick Summary Blog:
Are you also struggling with your heavy load apps on multiple servers? Does your cost of managing the projects on various servers go beyond your budget limits? If yes, then AWS Lambda enables you to build serverless applications without exceeding your budget! With the ability to write your code in popular programming languages and run it in response to various events, AWS Lambda can be a game-changer for developers. But what’s the AWS Lambda pricing and is there any simple AWS Lambda pricing calculator? Here’s a complete blog for you.

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Is AWS Lambda Pricing model seems complex to you? 

No worries, here we have covered everything you need to understand about AWS Lambda Pricing and best practices to optimize the cost of running a serverless application… 

So are you looking for a cost-effective way to run your applications in the cloud, but not sure how much it cost you? If so, you’re not alone. 

AWS Lambda cloud services enables you build a serverless application at the lowest cost..

In fact, according to a recent report, the global serverless architecture market is expected to grow to $21.1 billion by end of 2026 with an impressive CAGR of 22.7%. And one of the most popular serverless computing services out there is AWS Lambda.

AWS Lambda Pricing

Image Source: marketsandmarkets

Though these statistics are quite influential, and however, great power comes with great responsibility and cost. 

The best part about AWS Lambda, you pay only for what you use in AWS Lambda, which makes it a great option for startups and small businesses. But, understanding the different pricing models and optimizing your costs can be a complex and daunting task.

In this blog, we’ll dive into the nitty-gritty of AWS Lambda pricing and give you an estimated cost to run a serverless application. 

We’ll explore the different pricing models and factors that affect the cost, and provide you with tips and best practices for optimizing your costs. 

So, buckle up and get ready to unleash the full potential of AWS Lambda while keeping your costs in check!

Let’s start with the basics of this blog…

What Exactly is AWS Lambda?

In today’s fast-paced computing world, startups are constantly seeking potential ways to build and deploy applications more efficiently and cost-effectively. That’s where AWS Lambda comes into the role!

It’s an event-driven, serverless computing platform offered by Amazon Web Services. Here is a quick video for your reference…

AWS Lambda is a computing service that allows you to run code without the need for provisioning or managing servers. Instead of spinning up a virtual machine or container, Lambda lets you upload your code and run it on a highly scalable and fault-tolerant infrastructure.

At its core, Lambda is all about functions. You write your code as a function, upload it to AWS Lambda, and then AWS takes care of running and scaling your function in response to events. These events could be anything from an HTTP request to a new file being uploaded to S3 or even a message arriving in an SQS queue.

One of the most compelling aspects of Lambda is that you only pay for what you use. AWS Lambda charges based on the number of requests, the duration of your function’s execution, and the amount of memory your function uses. 

This makes it an incredibly cost-effective option for startups who are in need to run small snippets of code or who want to build highly scalable applications without incurring high infrastructure costs. 

So if you are planning to create a serverless application for your business, then you can choose to hire a mobile app developer in India. But before that let’s understand how much it cost you…

Understanding the Structure of AWS Lambda Pricing

AWS Lambda is a serverless computing service offered by Amazon Web Services (AWS). It allows developers to run code in response to events, without the need to manage servers or infrastructure. Though using AWS Lambda is a highly attractive option before you hire software developers in India, businesses are always concerned about AWS Lambda Pricing. 

AWS Lambda pricing is based on the number of requests and the duration of the code execution. Here is an overview of AWS Lambda pricing:

Request Pricing

AWS Lambda charges per request for each function you run. The first 1 million requests are free every month, after which you will be charged $0.20 per million requests.

Duration Pricing

AWS Lambda charges based on the amount of time your code executes, rounded up to the nearest 100ms. 

You will be charged based on the memory size of your function, which determines the amount of CPU and network resources allocated to your function. The cost per GB-second varies by region and starts at $0.00001667 per GB-second.

AWS Lambda Pricing

Image Source: Google

Free Tier

AWS Lambda offers a free tier that includes 1 million free requests and 400,000 GB-seconds of compute time per month. This is a great way to get started with AWS Lambda and test your functions without incurring any costs.

Additional Charges

There may be additional charges for data transfer, storage, and other AWS services used by your function. You can use the AWS Simple Monthly Calculator to estimate your monthly AWS Lambda costs based on your expected usage.

In summary, AWS Lambda pricing is based on the number of requests and the duration of the code execution. There is a free tier available for new users, and additional charges may apply for data transfer, storage, and other AWS services used by your function.

Before you jump on the section to know what factors actually affect the AWS Lambda pricing, it is worth understanding what exactly Lambda AWS do…

What Does AWS Lambda Do?

AWS Lambda, an Amazon service, empowers you to execute code seamlessly for various applications and backend systems, all without the complexity of provisioning or overseeing servers. You simply upload your code, and AWS Lambda handles the intricate orchestration required for your code’s execution and scalability, ensuring high availability.

Functioning on an event-driven model, AWS Lambda relies on the concept of Functions – distinct pieces of Python code (with no explicit naming) designed for specific tasks. These functions, or lambdas, evaluate expressions based on input arguments. You input a value (argument) and define an operation (expression), which the lambda promptly executes.

This execution takes place in response to specific events occurring within associated AWS services. For instance, AWS Lambda reacts when an object is added to an Amazon S3 bucket.

Often referred to as Function-as-a-Service (FaaS) or embraced as serverless computing, AWS Lambda isolates each function in its self-contained environment, complete with an exclusive file system view and dedicated resources.

Use cases for Lambda encompass a broad spectrum of functions, including

  • Managing sporadic workloads with extended intervals between executions throughout the day.
  • Real-time data processing.
  • Enabling social media streaming in conjunction with Amazon Kinesis.
  • Hosting serverless websites.
  • Rapidly converting frequently changing documents into various formats.
  • For tailored recommendations on optimal serverless compute resources based on criteria like AWS service, resource type, instance type, region, pricing, and more, explore CloudZero Advisor.

Read More: Top Mobile App Ideas in 2024

What Factors Overall Impact The Lambda AWS Pricing?

It is true that AWS Lambda is a cost-effective solution for running your code because you only pay for the computing time that your code consumes. However, there are several factors that can impact the AWS Lambda costs. In this answer, I will explain those factors in detail with points:

Let’s dive into each factor that impacts the cost of AWS Lambda and explore some examples.

Factor #1 Function Execution Time:

The cost of AWS Lambda is based on the time it takes for your function to execute, rounded up to the nearest 100 milliseconds. For example, if your function takes 500 milliseconds to execute, you will be charged for 600 milliseconds of compute time. Therefore, the longer your function takes to execute, the more you will be charged.

Let’s take an example!

Suppose you have a function that processes images uploaded to AWS. If the processing time for each image takes 2 seconds, and you expect 10,000 images per month, the total compute time for the month would be 20,000 seconds (2 seconds x 10,000 images). With a memory allocation of 256MB, the cost of executing this function would be $2.67 per month.

Factor # 2 Memory Allocation:

AWS Lambda Pricing is also based on the amount of memory that your function uses, and the number of gigabytes per second (GB-s) of memory allocated to your function. Therefore, the more memory your function uses, the more you will be charged.

Let’s say your function requires 1GB of memory to execute and runs for 2 seconds, you will be charged for 2GB-s of memory usage. If the cost per GB-s is $0.00001667, then the cost of running this function would be $0.00003334.

Factor # 3 Invocation Rate:

Another factor that impacts the AWS Lambda pricing is the number of times your function is invoked. Each time your function is invoked, you will be charged for the processing time used to execute the function. Therefore, if your function is invoked frequently, you will be charged more.

To make this work, many times, startups cut down the risk and simply hire an app developer in India. But still, to make it clear how this factor could affect the AWS Lambda Pricing, here we will explain your simple calculation.

Assume that your function is invoked 100,000 times per month, and each invocation takes 500 milliseconds to execute. With a memory allocation of 256MB, the cost of executing this function would be $133.33 per month.

Read More: How Much It Costs To Hire Software Developer in India.

Factor # 4 Concurrent Executions

Your function’s overall performance may be improved by using Amazon Lambda to run many instances of your function concurrently. The performance of your function may be impacted and your costs may go up if you have too many concurrent executions due to resource contention.

There can be 100 concurrent executions using AWS Lambda. If you go over this limit, your function’s performance could suffer, and you might have to pay more for the extra resources needed to handle the extra concurrent executions.

These are the few most important factors that may affect AWS Lambda pricing. So in case, if you are hiring an Indian app developer but are not sure how much do they cost you to run a serverless application using Amazon Lambda, then you can evaluate these factors. 

But what if we compare Amazon Lambda Pricing with other Amazon services?

Evaluate the Difference Between the AWS Lambda Pricing Model Vs EC2 

When it comes to running a serverless application, AWS Lambda and EC2, are the two popular services offered by Amazon Web Services (AWS) that are used for different purposes. 

AWS Lambda Pricing

Image Source: whizlabs

 Here’s a comparison of the pricing models for each of these services:

AWS Lambda Pricing Model:

You may run code without managing servers by using AWS Lambda, a serverless computing service. The number of calls made to your function and the amount of computing time required to handle those calls determine how much Amazon Lambda costs. Before you step out to hire an Indian software developer, it is worth knowing the Amazon Lambda pricing model.

The following are the key aspects of AWS Lambda’s pricing model:

  • Free Tier: You are permitted to process 400,000 GB seconds of compute time and up to 1 million requests per month.
  • Pay-Per-Request: After the free tier cap, you will be charged based on how many requests are made of your function. For every million queries, the price is $0.20.
  • Compute Time: The cost to you will depend on how much time was required to process your requests in terms of compute time. Every GB-second consumed costs $0.00001667.

EC2 Pricing Model:

Amazon Elastic Compute Cloud (EC2) is a web service that provides resizable compute capacity in the cloud. EC2 allows you to rent virtual machines (instances) on which you can run your applications. The pricing model for EC2 is based on the instance type, operating system, and region.

The following are the key aspects of EC2’s pricing model:

  • On-Demand Instances: With On-Demand instances, you pay for computing capacity by the hour or second with no long-term commitments. The cost of On-Demand instances varies depending on the instance type, operating system, and region.
  • Reserved Instances: Reserved Instances offer a significant discount (up to 75%) compared to On-Demand instances. You make a one-time upfront payment for a term of 1 or 3 years and then pay a lower hourly rate for the instance. The cost of Reserved Instances varies depending on the instance type, operating system, and region.
  • Spot Instances: Spot Instances allow you to bid on unused EC2 capacity and can provide significant savings (up to 90%) compared to On-Demand instances. However, the price of Spot Instances fluctuates based on supply and demand.

So what will you choose for your serverless application? Whether Amazon Lambda suits you or EC2 will be a good choice?

In conclusion, the pricing models for AWS Lambda and EC2 differ significantly in terms of how they charge for computing resources. While EC2 charges are based on the instance type and usage, Lambda charges are based on the number of function invocations and the duration of their execution. 

This means that Lambda can be a cost-effective option for applications with sporadic or unpredictable traffic, while EC2 is better suited for applications with steady traffic and requires more control over the underlying infrastructure. 

However, there is no winner or loser. The choice between Lambda and EC2 depends on the specific needs and requirements of the application in question.

Best Practices To Optimize The AWS Lambda Pricing

 Are you tired of overpaying for AWS Lambda usage? Don’t let skyrocketing costs eat into your profits! Follow these best practices to optimize your AWS Lambda pricing and start saving money today:

Right-size your Lambda functions: Avoid paying for unused resources by accurately sizing your Lambda functions. Analyze your workload and select the appropriate amount of memory and CPU resources needed to execute your code. This will ensure that you only pay for the resources you actually use, and nothing more.

Use Efficient Code: Write efficient code that executes quickly and consumes fewer resources. Though in case if you are developing a platform-specific app like Android, then it is best to hire an Android app developer in India. The professional assistance will not only improve the performance of your Lambda functions but also reduce the amount of time they run and the resources they consume, ultimately lowering your AWS bill.

Implement Caching: Reduce the number of calls to external resources by implementing caching. This will help you avoid redundant requests and reduce your AWS bill by decreasing the amount of time your Lambda functions spend executing.

Track Your App Usage: Keep a watch on your Lambda usage to spot any patterns or peaks in activity. By doing this, you may make the most of your resources and cut costs when possible.

Use AWS Tools: Amazon provides a number of tools, such as AWS Cost Explorer, AWS Budgets, and AWS Trusted Adviser, to assist you in optimizing your Lambda cost. You may optimize your AWS bill and find cost-saving opportunities with the aid of these tools.

So these are the few best practices that you can follow to save more on your budget and optimize the cost of running the serverless application. But the central question is how much exactly it cost you to run a serverless app…

How To Calculate The Cost To Run a Serverless Application?

Have you finally decided to move your application to a serverless architecture but are not sure exactly how much it cost you? Do you also want to know about AWS Lambda Pricing Calculator?

Don’t worry you are not alone!

When it comes to determining the cost to develop or deploy an app, things becomes easily fishy!

Before you hire software developer in India, it’s important to understand how to calculate the cost of running a serverless application. By accurately estimating your costs, you can optimize your usage and ensure that you’re getting the most value for your investment.

Here’s how to calculate the cost of running a serverless application:

1. Compute Resources:

The compute resources you use directly impact the cost of running your serverless application. This includes the amount of memory and CPU resources your application requires, as well as the duration of your function executions.

AWS charges are based on the amount of memory allocated to a function and the duration of the function’s execution. For example, running a function with 512 MB of memory for 1 million requests per month with an average duration of 1 second will cost approximately $0.21 per month.

2. Data Storage:

If your application stores data, you will need to factor in the cost of data storage. AWS offers a variety of data storage options, including Amazon S3 and Amazon DynamoDB. The cost of data storage depends on the amount of data stored, the frequency of data access, and the type of data storage used. For example, storing 1 GB of data in Amazon S3 for a month will cost approximately $0.023 per month.

3. Data Transfer:

Data transfer refers to the amount of data that is transferred between your serverless application and other AWS services or external sources. The cost of data transfer depends on the amount of data transferred and the geographic location of the data transfer. 

AWS charges based on the amount of data transferred in and out of its services. For example, transferring 1 GB of data from an AWS Lambda function in the US to an Amazon S3 bucket in the EU will cost approximately $0.12 per GB.

4. Additional Services:

Your serverless application may require additional AWS services, such as API Gateway or Amazon SQS. The cost of these additional services depends on the specific service used, the amount of usage, and the pricing model. AWS Lambda pricing is based on the number of API requests, message requests, or other usage-based metrics. For example, using Amazon API Gateway to handle 1 million API requests per month will cost approximately $3.50 per month.

Though calculating the cost to run a serverless application is a complex task especially when you don’t know the app requirements. But, by simply evaluating these factors, you can accurately estimate the cost of running your serverless application. 

For small-scale applications with moderate usage, the monthly cost to run an app on the cloud can be as low as $5-$10. 

However, for larger-scale applications with high usage and storage needs, the cost can be significantly higher and may be ranging between $40 to $100 per month. 

By monitoring and optimizing your usage, you can keep your serverless application costs under control and ensure that you’re getting the most value for your investment.

Conclusion: How Can AppsDevPro Help You Run A Serverless App On the Clouds Without Breaking a Bank?

Hopefully, with this blog, you have got an idea about the Amazon Lambda pricing model and best practices to optimize its cost. But when it comes to running your app on the cloud, what exactly do you need, and how to budget and optimize the serverless application? 

Since AppsDevPro is one of the leading platforms to provide app development services in India,  therefore we understand the challenges faced by businesses when it comes to running serverless applications on the cloud. You can hire a mobile app developer in India, with extensive knowledge of cloud computing and serverless technologies, we can help you design, deploy, and manage your serverless app on any cloud platform, ensuring maximum scalability and cost efficiency.

No matter how complex your app development and deployment needs are, we are here to help you achieve your serverless app goals without spending a fortune. 

For any query, you can contact our experts and allow us to take your business to the next level!

FAQs

What is AWS Lambda Pricing?

AWS Lambda pricing is a pay-as-you-go model, which means you only pay for the computing time you consume, without the need to provision or maintain servers. The pricing is based on the number of requests, duration of the code execution, and memory used by your application.

How Much Does It Cost To Run A Serverless Application On AWS Lambda?

The cost of running a serverless application on AWS Lambda depends on several factors, such as the number of requests, duration of the code execution, and memory used by your application. However, the pricing starts at $0.20 per 1 million requests and $0.0000166667 for every GB-second used.

Are There Any Additional Costs For Using AWS Lambda?

Yes, there may be additional costs associated with using AWS Lambda, such as data transfer fees, storage fees, and other AWS services used in conjunction with Lambda.

How Much Does AWS Lambda Cost?

AWS Lambda pricing is based on the number of requests and the duration of the function execution. The first one million requests per month are free, and after that, you are charged $0.20 per million requests. The duration of the function execution is rounded up to the nearest 100ms and billed at $0.00001667 for every GB-second used.

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