---
title: "How do savings plans affect the scheduler savings"
slug: "how-do-savings-plans-affect-the-scheduler-savings"
updated: 2026-09-03T11:07:01Z
published: 2026-09-03T11:07:01Z
canonical: "docs.turbo360.com/how-do-savings-plans-affect-the-scheduler-savings"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://docs.turbo360.com/llms.txt
> Use this file to discover all available pages before exploring further.

# How do savings plans affect the scheduler savings

## 🧩 **Key concept: Savings Plans discount *spend*, not VMs**

A Savings Plan is a commitment to spend a fixed amount per hour, for example:

### ✅ You commit to: **$5/hour for 1 year**

Azure will then discount any compute costs up to $5/hour.

But here's the important bit:

#### 🚨 **Turning off a VM does NOT automatically save you money**

It *only* saves money if the VM was causing you to exceed the Savings Plan commitment.

## Scenarios

---

### 1️⃣ **Scenario 1: You are ABOVE the Savings Plan commitment before turning off the VM**

Example:

- Savings Plan commitment: **$5/hr**
- Total compute before turning off the VM: **$6/hr**
- The VM costs **$0.77/hr**

#### After turning off the VM:

- New total compute = **$5.23/hr**

You are still above your commitment.

#### ✔️ Realized savings = **full $0.77/hr**

Because the VM's usage was not covered by the Savings Plan; it was billed at PAYG.

### 2️⃣ **Scenario 2: You are AT the Savings Plan commitment before turning off the VM**

Example:

- SP commitment: **$5/hr**
- Total compute = **$5/hr**
- VM uses **$0.77/hr** of that

When you turn it off:

- Compute drops to **$4.23/hr**

#### ❌ Realized savings = **0**

Because you still pay the full $5/hr commitment regardless of consumption.

The VM was being *discounted* under the Savings Plan. Turning it off does not reduce the bill.

### 3️⃣ **Scenario 3: You are BELOW the Savings Plan commitment before turning off the VM**

Example:

- SP commitment: **$5/hr**
- Total compute = **$4/hr**

Turn off VM (saving $0.77/hr):

- New compute = **$3.23/hr**

#### ❌ Realized savings = **0**

You were already under-consuming your commitment.

## 🎯 Summary

---

| Situation | Real Savings? | Why |
| --- | --- | --- |
| You are ABOVE your SP commitment | ✔ Yes | VM is billed at PAYG, so reducing usage reduces cost |
| You are AT your commitment | ❌ No | VM was discounted under SP; commitment charge doesn't change |
| You are BELOW your commitment | ❌ No | You are already paying full commitment amount |

## 🔥 **The golden rule of Savings Plans**

---

> **Turning off a VM only saves money if doing so reduces your PAYG (non-discounted) consumption.**

If the VM is inside the discounted portion of spend → no savings If it is outside (above the commitment) → full savings