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Understanding AWS Lambda Pricing: Why Execution Time Matters

Aditya Bhuyan
4 min readJan 24, 2025

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AWS Lambda, a serverless compute service, offers developers the flexibility to run code without managing servers. This pay-per-use model brings significant cost advantages, but understanding how AWS determines pricing is crucial for optimizing costs. This article delves into the intricacies of AWS Lambda pricing, focusing on why execution time is the primary cost driver and exploring the rationale behind this approach.

The Core of AWS Lambda Pricing: Execution Time

At the heart of AWS Lambda pricing lies the concept of execution duration. You are primarily charged for the amount of time your Lambda function runs, measured in GB-seconds. This means the amount of memory allocated to your function multiplied by the execution time in seconds.

For instance, if you allocate 128MB of memory to your function and it runs for 10 seconds, the total execution time is 128MB * 10 seconds = 1280 MB-seconds. AWS then calculates the cost based on the number of GB-seconds consumed.

Why Execution Time, Not CPU or Memory Usage?

While CPU usage and memory consumption are crucial factors in any computing environment, AWS Lambda’s focus on execution time offers several key advantages:

  • Simplicity: Execution time is a straightforward…

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Aditya Bhuyan
Aditya Bhuyan

Written by Aditya Bhuyan

I am Aditya. I work as a cloud native specialist and consultant. In addition to being an architect and SRE specialist, I work as a cloud engineer and developer.

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