*This is the average monthly payment over the course of the Reserved Instance term. For each month, the actual monthly payment will equal the actual number of hours in that month multiplied by the hourly usage rate. The hourly usage rate is equivalent to the total average monthly payments over the term of the Reserved Instance divided by the total number of hours (based on a 365 day year) over the term of the Reserved Instance.

**Effective hourly pricing is shown to help you calculate the amount of money that a Reserved Instance will save you over On-Demand pricing. When you purchase a Reserved Instance, you are billed for every hour during the entire Reserved Instance term that you select, regardless of whether the instance is running or not. The effective hourly price shows the amortized hourly cost of the instance (this takes the total cost of the Reserved Instance over the entire term, including any upfront payment, and spreads it out over each hour of the Reserved Instance term).