☁️

Cloud Spend Optimizer

Analyse and optimise your cloud infrastructure costs across AWS, Azure, and GCP. Identify savings from reserved instances, rightsizing, and unused resources.

Last updated: March 2026

A cloud spend calculator estimates your monthly and annual cloud infrastructure costs across compute, storage, and networking. Most startups overpay for cloud by 30 to 50%. Use this free tool to right size your infrastructure and find savings.

Monthly Cloud Bill ($)

Estimated Unused Resources %

Number of Engineers

Monthly Revenue ($)

Annual Cloud Spend

$60,000

Wasted Per Month

$1,500

Annual Savings Potential

$18,000

Cloud as % of Revenue

2.5%

📊

How You Compare

Your cloud spend as % of revenue is in the bottom 74% of SaaS companies.

Industry typical: 5-15%

Source: Flexera State of the Cloud Report 2025

💡 What This Means

✅ 2.5% of revenue on cloud is efficient. Your infrastructure costs are well-managed.
💰 You could save $18,000/year by eliminating wasted resources. Start with unused instances, oversized databases, and unattached storage.
📊 Cloud spend per engineer: $500/month. The industry average is $400-$800/engineer. Use this to benchmark as you scale.

Create a free account to save calculations, track trends, and download PDF reports.

Create Free Account Sign In

Embed this calculator on your website

Add the Cloud Spend Optimizer to your site. Capture leads, customise branding, and track engagement.

Get Embed Code

What is Cloud Spend Efficiency?

Cloud spend efficiency measures how effectively a company uses its cloud infrastructure budget (AWS, Azure, GCP) relative to revenue and team size. With cloud costs as the second-largest expense for many tech companies (after payroll), optimisation can significantly improve margins. Track overall burn with the Burn Rate Calculator and audit your full SaaS stack with the Software Stack Calculator.

The Formula

Cloud as % of Revenue = (Annual Cloud Spend ÷ Annual Revenue) × 100
Per Engineer Cost = Annual Cloud Spend ÷ Number of Engineers

Worked Example

A SaaS company spends $180,000/year on cloud infrastructure, generates $3M in revenue, and has 12 engineers.

Cloud as % of revenue = ($180,000 ÷ $3,000,000) × 100 = 6%
Per engineer cost = $180,000 ÷ 12 = $15,000/year
Monthly cloud spend = $180,000 ÷ 12 = $15,000/month

📌 Cloud spend at 6% of revenue and $15,000 per engineer is within healthy range for a growth-stage SaaS company, though there's room for optimisation.

Why This Matters

Margin impact

For a SaaS company targeting 75% gross margins, cloud costs are the main lever. Reducing cloud spend from 15% to 8% of revenue directly adds 7 percentage points to gross margin — a material improvement for fundraising and valuation multiples.

Scaling efficiency

Cloud costs should grow slower than revenue. If both grow at the same rate, your unit economics aren't improving. Track the ratio monthly and investigate any increase above the trend line.

Common Mistakes

❌ Not using reserved instances

On-demand pricing is 40-60% more expensive than 1-year reserved instances for predictable workloads. If a server has run continuously for 3+ months, it should be reserved. This single change typically saves 30% of the cloud bill.

❌ Ignoring idle resources

Development environments, unused storage volumes, and over-provisioned databases waste 20-30% of typical cloud budgets. Schedule dev environments to shut down at nights and weekends for immediate savings.