How to Calculate Kubernetes Cost Savings

Calculating Kubernetes cost savings is essential for demonstrating the value of resource optimization initiatives. This guide walks you through the process of accurately estimating potential savings.

Understanding Cost Components

Kubernetes costs come from several sources:

1. Compute Resources: CPU and memory for pods
2. Storage: PersistentVolumes and disk space
3. Networking: LoadBalancers, ingress controllers
4. Management Overhead: Control plane costs

Step-by-Step Calculation

1. Identify Unused Resources

First, identify what resources are unused:

• Orphaned ConfigMaps and Secrets
• Unused Services (especially LoadBalancers)
• Detached PersistentVolumes
• Idle pods and deployments

2. Calculate Resource Costs

For each unused resource type, calculate the monthly cost:

LoadBalancers:

Monthly Cost = Number of Unused LoadBalancers × Hourly Rate × 730 hours

PersistentVolumes:

Monthly Cost = Unused Storage (GB) × GB/Month Rate

Compute Resources:

Monthly Cost = (Unused CPU cores × CPU rate) + (Unused Memory GB × Memory rate)

3. Factor in Multipliers

Consider these factors:

• Multi-cluster: Multiply by number of clusters
• Multi-cloud: Sum across all providers
• Time-based: Project yearly savings (monthly × 12)

4. Calculate ROI

ROI = (Annual Savings - Tool Cost) / Tool Cost × 100

Example Calculation

Let's say you discover:

• 5 unused LoadBalancers at $0.10/hour = $365/month
• 500GB unused storage at $0.10/GB = $50/month
• Total: $415/month = $4,980/year

With KorPro at $99/month ($1,188/year):

• Net savings: $3,792/year
• ROI: 319%

Using KorPro for Calculations

KorPro automatically calculates:

• Monthly and yearly cost estimates
• Cost breakdown by resource type
• Potential savings across all clusters
• ROI projections

Conclusion

Accurate cost calculations help justify optimization efforts and demonstrate clear ROI. Tools like KorPro automate these calculations, making it easy to identify and quantify savings opportunities.