Cloud Forecast Calculator
Project future cloud spend with a growth model you choose.
What this calculator does
The compound model grows each period on the one before; the linear model adds the same amount each period. The two are never blended — the user picks one and the result says which.
Inputs and what they mean
- Currency
- — Amounts are shown in the currency you pick. No exchange rate is applied..
- Growth model
- — The two models are kept separate and labelled; they are never blended..
- Cost in the latest period
- — number value.
- Growth per period
- — Your own observed or planned growth rate. No industry rate is assumed..
- Periods ahead
- — number value.
- Price as of (optional)
- — The date you took these prices. It is shown with the result so the figure is never read as a current vendor price..
- Price source (optional)
- — Where the prices came from. Shown with the result..
How to use it
- Enter your own figures — the calculator never fills in a rate, price or benchmark for you.
- Press Calculate to see the result.
- Read the formula, variables, assumptions and source below the result before you rely on it.
Formula
Compound: Cost(n) = Baseline × (1 + g)^n. Linear: Cost(n) = Baseline × (1 + g × n).
Worked example
$50,000 a month growing 5% a month for a year
Compound and linear growth are separate choices, each labelled on the result.
Reading the result
The headline figure is the main answer. Any breakdown underneath shows the parts that make it up, so you can check the working and see what changes when you adjust an input.
Limitations and assumptions
Results depend entirely on the figures you enter and are rounded for display. They are for general information and education, not professional advice.
Reference: The Linux Foundation — Forecasting — FinOps Framework
Last reviewed:
Common questions
Formula, source and verification
Two named growth models, kept separate; the model used is shown with the result.
The question it answers: Are we going to end the period over budget, and what will spend look like a year from now?
The formula
Compound: Cost(n) = Baseline × (1 + g)^n. Linear: Cost(n) = Baseline × (1 + g × n).
- C0 — Baseline cost
- (currency). Cost in the latest period.
- g — Growth per period
- (%). The user's own observed or planned growth.
- n — Periods ahead
- (count). How far ahead to project.
Units: Currency; periods; percentages.
What kind of calculation this is
Estimation model. This is a published estimation model. It produces an estimate, not a measured fact, and its accuracy depends on how well your situation matches the model.
Method
The compound model grows each period on the one before; the linear model adds the same amount each period. The two are never blended — the user picks one and the result says which.
Assumptions built into the result
- Mathematical: Growth continues at the rate entered for the whole horizon.
- Mathematical: Every price is the one the user entered, in the currency they chose; no exchange rate is applied.
- Mathematical: Usage and prices cover the same period.
Figures this calculator will never guess for you
- No provider price, instance rate, storage rate or transfer rate is built in.
- No typical discount, saving or industry average is suggested.
- No growth rate is suggested or defaulted from industry data.
Limitations
- A projection of one assumed growth rate, not a prediction.
- Step changes such as a migration or a new product are not modelled.
- The result is only as current as the prices entered; a price taken months ago is not a current vendor price.
- Arithmetic over the figures entered — it cannot tell whether the usage or the rate card behind them is right.
Source and version
- Standard or reference
- FinOps Framework — forecasting — FinOps Foundation (FinOps Framework capability: forecasting — future cloud cost is projected from observed cost using an explicitly stated growth model.)
- Published source
- The Linux Foundation — FinOps Framework
- Formula version
- Version 1
- Verification
- Reviewed against the cited source on
- How much weight the source carries
- Standards or government
- Applies to
- Currency
- Amounts stay in the currency you choose; no exchange rate is applied.
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