Azure VM Price Change

Handian Sudianto 7,471 Reputation points
2026-10-05T00:37:46.26+00:00

Price change below will be affected if we have valid Azure VM Reservation or the new price will be applied when reservation was expired?

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Cost Management
Cost Management

A Microsoft offering that enables tracking of cloud usage and expenditures for Azure and other cloud providers.

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TP 163.9K Reputation points Volunteer Moderator
2026-10-05T01:24:20.01+00:00

Hi,

Existing VM Reserved Instances (RIs) will not be affected by the price increase. Reserved Instances are a pre-purchase of the base VM costs (even if you choose monthly), which is why the price is locked in for the entire 1 or 3 year term. Please see below screenshot from portal:

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If you purchase or renew an RI after the price increase takes effect then the purchase price will be higher than it is now for the listed regions and affected VM sizes. Also, if you allow reservation to expire and don't renew/purchase new then the new full Pay-As-You-Go price that is in effect for that region/VM size will apply.

Please let me know if you have any questions.

Thanks.

-TP

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  1. AI answer

    2026-10-05T00:37:58.3666667+00:00

    For Azure VM reservations, the reservation discount continues through the committed term. Existing reservations remain valid through their term and continue providing discounts for eligible usage.

    When the reservation expires, usage moves to pay-as-you-go rates unless another commitment option is selected. For reservations with autorenew turned on, a replacement reservation is purchased automatically when the reservation expires. If autorenew is off, the billing discount expires and resources are billed at the pay-as-you-go price.

    So, a VM price increase does not change the discount on an active reservation during its valid term. The new pricing matters when the reservation expires and the workload falls back to pay-as-you-go, or when a new reservation or renewal is purchased under the then-current pricing.

    AI-generated content may be incorrect. Read our transparency notes for more information.

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