What should a monthly AWS cost review check?
By the Keel team · Last checked · 4 min read
Short answer
A monthly AWS cost review should check what changed since last month and why, which services and resources drive the bill, what is idle or oversized, whether steady usage is covered by Savings Plans, and whether budgets and anomaly alerts are in place. It should end with a short list of actions, each with an owner, not just a report.
29%
of IaaS and PaaS spend estimated as waste
Source: Flexera, 2026
Why should a small team review AWS costs every month?
A monthly AWS cost review catches small, quiet waste, such as forgotten environments, logs without retention and unused gateways, while it is still easy to explain and remove.
AWS bills grow quietly. A test environment left running, a log group with no retention, a NAT gateway nobody needs: each is small, and together they add up. A monthly review catches them while they are still small and easy to explain. Flexera's 2026 State of the Cloud Report estimates wasted cloud spend at 29%, rising for the first time in five years.
How do you find which service drives your AWS bill?
Open AWS Cost Explorer, set the range to the last three months, group by service, and look at the top five lines.
Then group the biggest service by usage type, and by tag if your resources are tagged. This usually explains most of the bill in a few minutes.
- Group by Service to see where the money goes.
- Group the top service by Usage type to see what kind of usage, such as instance hours or data transfer.
- Group by Tag, such as environment or service, to see which part of your product it belongs to.
- Compare month on month and note anything that grew more than your traffic did.
If tags are missing, that is the first action: tag every resource with at least an environment and an owner.
What should a monthly AWS cost review checklist include?
A monthly AWS cost review should cover month-on-month change, idle compute, oversized databases, NAT and data transfer, storage, public IPs, logs, non-production hours, commitments and alerts.
| Check | Where to look | Typical action |
|---|---|---|
| Month-on-month change by service | Cost Explorer | Explain every rise above traffic growth |
| Idle compute | EC2 and ECS utilisation, Compute Optimizer | Stop, schedule or delete |
| Oversized databases | RDS CPU, memory and connections | Downsize at the next maintenance window |
| NAT gateway and data transfer | Usage types for NAT and data transfer | Add VPC endpoints, remove unused gateways |
| Unattached storage | EBS volumes and old snapshots | Delete after checking |
| Public IPv4 addresses | Public IP insights in Amazon VPC IPAM | Release unused addresses |
| Logs without retention | CloudWatch Logs groups | Set retention periods |
| Non-production running all night | Staging and preview environments | Schedule them off out of hours |
| Commitment coverage | Savings Plans coverage and utilisation | Commit only to steady usage |
| Alerts | AWS Budgets and Cost Anomaly Detection | Make sure alerts reach a person |
How do you stop a surprise AWS bill?
Set an AWS Budget for your expected monthly spend with alerts at, for example, 80% and 100% of forecast, and turn on AWS Cost Anomaly Detection so unusual daily spend triggers an alert.
Send both to a channel someone actually reads. Most surprise bills come from something that started weeks earlier and nobody was told.
How do you reduce AWS costs at a small startup?
Start with waste, then rightsizing, then commitments, in that order.
Removing idle resources saves money with no risk. Rightsizing saves more but needs care. Commitments such as Savings Plans give the biggest discount on what is left, but lock you in, so make them last.
- Delete what is idle: unused instances, volumes, snapshots, load balancers and IP addresses.
- Turn non-production off out of hours.
- Rightsize what is oversized, starting with databases and always-on compute.
- Fix architectural leaks such as NAT gateway data processing, often with VPC endpoints.
- Commit to steady usage with Savings Plans, as in Savings Plans or Reserved Instances.
If the bill is high but you have almost no users, why is our AWS bill high with almost no users lists the usual causes.
Who should own the monthly AWS cost review?
One person should own the review and the action list, usually the CTO or a lead engineer, even if a provider does the analysis.
The review only saves money if someone with authority decides what to change and makes sure it happens. Keep each month's actions in the same place so you can see whether last month's were done.
Is your AWS bill under control?
Tick each item that is true this month.
- You can explain the top five lines on the bill.
- Every resource has an environment and owner tag.
- An AWS Budget alerts a person before month end.
- Cost Anomaly Detection is on.
- Non-production environments turn off out of hours.
- Last month's cost actions were done.
Decision point: Fewer than four ticks: block an hour this week for a first full review, starting with tags and alerts.
How long should a monthly AWS cost review take?
For a small SaaS account, an hour is usually enough once tagging and budgets are in place.
The first review takes longer, because you are explaining the whole bill for the first time and fixing missing tags. After that, most of the time goes on explaining changes since last month and agreeing the action list.
What should an AWS cost review report look like?
Keep it to one page: total spend against last month and against budget, the top five services, every change above an agreed threshold with its reason, the actions agreed with an owner and a date, and the status of last month's actions.
A short, consistent format makes trends obvious and stops the review becoming a dashboard nobody reads.
Sources
- Flexera, 2026 State of the Cloud Report (2026)
- AWS docs, Analyzing your costs with AWS Cost Explorer (checked October 2026)
- AWS docs, Managing your costs with AWS Budgets (checked October 2026)
- AWS docs, Detecting unusual spend with AWS Cost Anomaly Detection (checked October 2026)
- AWS docs, Compute Savings Plans and Reserved Instances (checked October 2026)
Keep reading
Keel is an AWS release and recovery operations service for SaaS teams of 3 to 15 developers, provided by Bargainn Services Ltd, a UK company registered at Companies House (16497746). Registered office: 3rd Floor, 86-90 Paul Street, London, EC2A 4NE, United Kingdom.