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Understanding Cost Reports: Amortized, Blended, and Unblended Costs
Understanding Cost Reports: Amortized, Blended, and Unblended Costs

This guide provides a clear understanding of the different types of costs - Amortized, Blended, and Unblended - available in cost reports.

Cyril avatar
Written by Cyril
Updated over a week ago

Tailwarden's cost report feature offers a comprehensive view of your cloud spending, allowing you to select between three distinct cost types: Amortized Cost, Blended Cost, and Unblended Cost.

Understanding these cost types is crucial for accurate financial management and budgeting. This guide explains the differences between these costs and how you can switch between them in Tailwarden.

Unblended Cost

  • TL;DR: The raw sushi of costs – unprocessed and served as is.

  • Definition: Unblended cost shows the direct costs associated with each service, without any averaging or distribution. It reflects the raw, unadjusted expenses.

  • Use Case: Best for detailed analysis and tracking specific usage costs.

Amortized Cost

  • TL;DR: It's like spreading the cost of a fancy dinner over several dates. You pay upfront, but it feels cheaper over time.

  • Definition: Amortized cost distributes the upfront costs of reserved instances over the reservation period. This cost type provides a more accurate reflection of the actual cost of your usage.

  • Use Case: Ideal for long-term budgeting and cost allocation.

Blended Cost

  • TL;DR: Think of it as a smoothie – a mix of all your costs, blended into one average flavor.

  • Definition: Blended cost averages the costs of reserved and on-demand instances across your organization. This method provides a simplified view of your overall expenses.

  • Use Case: Useful for organizations with a mix of reserved and on-demand instances, offering a holistic view of costs.

Switching Between Cost Types in Tailwarden

Switching between these cost types in Tailwarden is straightforward as you can see below.
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