Last updated: May 2026
Azure DatabasesBeginnerAZ-104⏱ 12 min read

Azure Database Pricing

Azure database services span a huge price range — from a few hundred rupees per month for a small MySQL Flexible Server to millions for a large Cosmos DB globally distributed deployment. Understanding all the cost components, knowing which levers to pull, and planning before you deploy can save enormous amounts. This page covers pricing for every major Azure database service.

What you'll learn Cost components for each database service · Real-world price estimates (Central India) · Azure Hybrid Benefit for SQL Server · Reserved capacity discounts · Serverless and auto-pause savings · Elastic pool savings · Top 10 database cost-saving tips · Using the Pricing Calculator

Azure SQL Database Pricing

SQL Database billing has three components — compute, storage, and backup storage:

ComponentBilling UnitApprox. Cost (Central India)
Compute (vCore)Per vCore per hourGeneral Purpose: ~₹6–8/vCore/hour
StoragePer GB per month~₹10–12/GB/month
Backup storagePer GB per month above freeFirst 100% of DB size free; LRS ~₹1/GB beyond

Real Example — General Purpose, 4 vCores, 100 GB

ComponentMonthly Cost
4 vCores × ~₹7 × 730 hours~₹20,440
100 GB storage × ₹11~₹1,100
Backup (within free tier)₹0
Total~₹21,540/month
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Serverless Saves on Dev/Test Serverless SQL Database auto-pauses after inactivity. A dev database that's used 8 hours/day instead of 24 saves ~67% on compute. Configure auto-pause to 1 hour for maximum savings.

SQL Managed Instance Pricing

SQL MI is significantly more expensive than SQL Database — it provides a full SQL Server instance:

TiervCoresApprox. Monthly Cost
General Purpose4 vCores~₹50,000–60,000/month
General Purpose8 vCores~₹100,000–120,000/month
Business Critical4 vCores~₹160,000–180,000/month
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Azure Hybrid Benefit Saves ~40% If you have existing SQL Server licences with Software Assurance, Azure Hybrid Benefit lets you use them for SQL MI — reducing the licence portion of the cost by ~40%. Always check if AHB applies before deploying SQL MI.

Cosmos DB Pricing

Cosmos DB bills on RU/s (throughput) and storage:

ComponentCost
Provisioned throughput (manual)~₹6 per 100 RU/s per hour
Autoscale throughput~₹7.5 per 100 RU/s per hour (billed at current scale)
Serverless~₹0.024 per 10,000 RUs consumed
Storage (transactional)~₹21/GB/month
Additional write regionsEach additional region multiplies RU/s cost
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Multi-Region Writes Multiply Costs Adding write regions to Cosmos DB multiplies your RU/s cost by the number of regions. A 1,000 RU/s database in 3 write regions costs 3× the single-region price. Read-only replicas are cheaper — plan your topology carefully.

MySQL & PostgreSQL Pricing

Both MySQL and PostgreSQL Flexible Server share a similar pricing model:

TiervCoresApprox. Monthly Cost (Central India)
Burstable1 vCore~₹1,200–1,800/month
Burstable2 vCores~₹2,500–3,500/month
General Purpose2 vCores~₹8,000–10,000/month
General Purpose4 vCores~₹16,000–20,000/month
Business Critical / Memory Optimised2 vCores~₹16,000–20,000/month

Stop/Start Saves Money

MySQL and PostgreSQL Flexible Servers can be stopped when not in use. Compute billing pauses — storage billing continues (~₹10/GB/month). A dev server stopped for 16 hours per day saves ~67% on compute.

Redis Cache Pricing

TierCache SizeApprox. Monthly Cost
Basic C0250 MB~₹1,000/month
Standard C11 GB~₹3,500/month
Standard C26 GB~₹9,000/month
Premium P16 GB~₹18,000/month
Premium P326 GB~₹75,000/month

Synapse Analytics Pricing

ComponentCost
Dedicated SQL Pool (DW100c)~₹55/hour → ~₹40,000/month (if always on)
Serverless SQL Pool~₹370/TB scanned
Spark PoolPer vCore-hour when running
Data Lake StorageStandard storage rates
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Pause Dedicated SQL Pool The biggest Synapse cost lever — pause the Dedicated SQL Pool when not running queries. A pool used only during business hours (8 hours/day × 22 days) saves ~73% vs always-on.

Azure Hybrid Benefit

If you have existing SQL Server licences with Software Assurance (SA), Azure Hybrid Benefit (AHB) allows you to use them in Azure — reducing costs by 30–40%.

ServiceAHB Discount
Azure SQL DatabaseUp to 30% off licence component
SQL Managed InstanceUp to 40% off licence component
SQL Server on VMUse own licence — save full SQL Server licence cost

Reserved Capacity

For predictable, steady-state workloads, reserve capacity 1 or 3 years in advance for significant discounts:

Service1-Year Reservation3-Year Reservation
Azure SQL Database~33% discount~60% discount
SQL Managed Instance~33% discount~60% discount
Cosmos DB (RU/s)~17% discount~29% discount
MySQL/PostgreSQL~33% discount~60% discount
Redis Cache~33% discount~60% discount

Top 10 Database Cost-Saving Tips

1. Use Azure Hybrid Benefit

If you have SQL Server licences with SA, enable AHB before deploying — saves 30–40% immediately.

2. Buy Reserved Capacity for Stable Workloads

3-year reserved capacity saves up to 60% vs pay-as-you-go for always-on databases.

3. Use Serverless for Dev/Test

SQL Database Serverless auto-pauses — billing stops for compute when idle.

4. Stop MySQL/PostgreSQL Servers After Hours

Flexible Servers can be stopped manually or via Azure Automation. Stop dev servers overnight.

5. Pause Synapse Dedicated SQL Pools

Biggest Synapse cost lever — pause when not running analytics queries.

6. Right-Size Before Deploying

Start with the smallest tier that meets requirements. Scale up is easy — but scale down requires careful planning.

7. Use Elastic Pools for Multi-Tenant Apps

Multiple databases sharing a pool costs far less than individual databases for SaaS apps with variable usage.

8. Choose the Right Cosmos DB Throughput Mode

Serverless for dev/test. Autoscale for variable production. Manual provisioned for predictable high-volume.

9. Minimise Cosmos DB Write Regions

Each write region multiplies RU/s cost. Use read-only regions where possible — much cheaper.

10. Monitor with Azure Cost Management

Set budgets and alerts. Review cost analysis monthly. Identify orphaned databases and unused elastic pool capacity.

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AZ-104 Exam Tip Know that Azure Hybrid Benefit reduces SQL Server licensing costs. Know reserved capacity provides up to 60% discount for 3-year commitments. Know that Serverless SQL Database and MySQL/PostgreSQL stop/start eliminate compute costs when idle. Know elastic pools reduce multi-tenant database costs.
📝 Practice Questions
Click an option to check your answer.
Q1. A company has existing SQL Server licences with Software Assurance. What should they do before deploying Azure SQL Managed Instance to reduce costs?
A — Enable Azure Hybrid Benefit to apply existing licences
B — Buy a new SQL Server licence from Azure Marketplace
C — Switch to Azure Database for MySQL to save costs
D — Choose the Basic tier to reduce costs
Q2. How much can reserved capacity (3-year) save compared to pay-as-you-go for Azure SQL Database?
A — 10%
B — 33%
C — Up to 60%
D — Up to 90%
Q3. What is the most effective way to reduce Azure Synapse Analytics costs for a batch analytics workload that only runs during business hours?
A — Reduce DWUs to minimum outside business hours
B — Pause the Dedicated SQL Pool outside business hours
C — Delete and recreate the Dedicated SQL Pool daily
D — Switch to Synapse Standard tier
Q4. A SaaS company has 50 customer databases with variable usage — different customers peak at different times. What saves the most money vs individual databases?
A — Use Serverless tier for each of the 50 databases
B — Put all databases in an Elastic Pool to share resources
C — Use SQL Managed Instance for all databases
D — Migrate all databases to Cosmos DB
Q5. How does adding write regions to a Cosmos DB account affect cost?
A — Additional write regions use a different billing unit
B — Each additional write region multiplies the RU/s cost by the number of regions
C — Additional write regions are free — you only pay for the primary region
D — Each additional region adds a flat ₹500/month
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