Cost per TB Calculator
Divide a cost you already know by the volume it covered.
In short
Formula: Cost per TB = Total cost / Volume in TB
What this calculator does
The FinOps unit-economics definition applied with the terabyte as the unit. Cost per GB is the same figure divided by 1,000.
Use it to turn Currency, Total cost for the period, Volume stored or processed, Price as of (optional), and the other shown inputs into a checked result you can compare, copy, or rerun with different assumptions.
The page shows the formula, a numeric worked example, and the assumptions that affect this professional & industry calculation.
Inputs and what they mean
- Currency
- — Amounts are shown in the currency you pick. No exchange rate is applied..
- Total cost for the period
- — The whole cost you are spreading over the volume..
- Volume stored or processed
- — Volume the cost covers, in the same period..
- 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
Cost per TB = Total cost / Volume in TB.
Inputs used: Currency, Total cost for the period, Volume stored or processed, Price as of (optional), Price source (optional).
Edge handling: Total cost for the period is required.; Total cost for the period cannot be negative.; Total cost for the period must be no more than 1000000000000.; Volume stored or processed is required.; Volume stored or processed cannot be negative..
Worked example
$18,400 across 220 TB
- Start with Currency: USD, Total cost for the period: 18400, Volume stored or processed: 220.
- Apply the method: Cost per TB = Total cost / Volume in TB.
- Both figures are your own, for the same period.
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
- Inputs outside the supported range are rejected rather than forced into a result.
- The result depends on the values you enter for this cost per tb calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.
Reference: The Linux Foundation — Unit economics — FinOps Framework
Last reviewed:
Common questions
Where does this formula come from?
FinOps Framework capability: unit economics — cost per business unit is total cost for a period divided by the units delivered in the same period; a workload's cost is the sum of its metered components at the rates the organisation is charged. See the source link on this page.
What kind of calculation is this?
A unit cost: total cost for a period over the volume stored or processed in the same period. Check the formula, example, and limitations on this page before using the result for a real professional & industry decision.
What are its limits?
Arithmetic over the figures entered — it cannot tell whether the underlying metering, logs or job records are complete. A figure from one run or one period is a weak description of ongoing behaviour. The result is only as current as the rates entered; a rate taken months ago is not a current cost. Tiered, committed-use and minimum-spend pricing are not modelled unless the user has already reduced them to the rates entered. A unit cost hides the mix of components behind it; a change in the mix moves the figure without any price changing.
How do I use the Cost per TB Calculator?
Enter the required values for Currency, Total cost for the period, Volume stored or processed, Price as of (optional), Price source (optional). The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.
What formula does the Cost per TB Calculator use?
Cost per TB = Total cost / Volume in TB The visible formula section above lists the calculation path and the edge cases the page handles, so the result can be checked without relying on the form alone. Check the formula, example, and limitations on this page before using the result for a real professional & industry decision.
Can the Cost per TB Calculator be used for exact decisions?
Use it as a calculation aid, not as a substitute for checking the underlying rule, contract, policy, or professional advice that applies to your situation. When a result depends on local rules, personal details, prices, or dates, enter those values yourself and confirm them before acting.
Formula, source and verification
A unit cost: total cost for a period over the volume stored or processed in the same period.
The question it answers: How large will this data store get, how much does compression save, and what does the retention policy cost?
The formula
Cost per TB = Total cost / Volume in TB
- C — Total cost
- (currency). The whole cost being spread.
- V — Volume
- (TB). Volume the cost covers, in the same period.
Units: Currency and terabytes in, currency per terabyte out.
What kind of calculation this is
Business input model. The answer depends on business figures only you can supply, such as your own costs, rates or volumes. No market or benchmark values are assumed for you.
Method
The FinOps unit-economics definition applied with the terabyte as the unit. Cost per GB is the same figure divided by 1,000.
Assumptions built into the result
- Mathematical: All the figures entered cover the same measurement period.
- Mathematical: Volumes, records and runs are counted consistently with the definitions the team has written down.
- Mathematical: The cost and the volume cover the same period and the same scope.
Figures this calculator will never guess for you
- No target, benchmark, industry average or typical figure is supplied for any value.
- A definition is never presented as a goal: the freshness formula is not a freshness target, and the growth formula is not a forecast of what growth should be.
- No provider price, rate card or list price is built in; every amount is entered by the user.
- No currency conversion is applied; amounts stay in the currency selected.
Limitations
- Arithmetic over the figures entered — it cannot tell whether the underlying metering, logs or job records are complete.
- A figure from one run or one period is a weak description of ongoing behaviour.
- The result is only as current as the rates entered; a rate taken months ago is not a current cost.
- Tiered, committed-use and minimum-spend pricing are not modelled unless the user has already reduced them to the rates entered.
- A unit cost hides the mix of components behind it; a change in the mix moves the figure without any price changing.
Source and version
- Standard or reference
- FinOps Framework — unit economics — FinOps Foundation (FinOps Framework capability: unit economics — cost per business unit is total cost for a period divided by the units delivered in the same period; a workload's cost is the sum of its metered components at the rates the organisation is charged.)
- 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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