Intermediate 25 min

Understanding AWS Pricing

AWS charges for what you use. For Lambda + API Gateway, here’s what costs money.

Lambda Pricing

Free tier (always free):

  • 1 million requests per month
  • 400,000 GB-seconds of compute time per month

After free tier:

  • $0.20 per 1 million requests
  • $0.0000166667 per GB-second

What is a GB-second? Memory (GB) × execution time (seconds).

Example:

  • Function uses 512 MB (0.5 GB)
  • Runs for 200ms (0.2 seconds)
  • Cost: 0.5 GB × 0.2 seconds = 0.1 GB-second

For 1 million requests:

  • 0.1 GB-second × 1,000,000 = 100,000 GB-seconds
  • Within free tier (400,000 GB-seconds limit)

For small projects: You’ll likely stay in the free tier.

API Gateway Pricing

HTTP API (what we used):

  • Free tier: First 1 million requests per month
  • After: $1.00 per 1 million requests

REST API (older, more features):

  • Free tier: First 1 million requests per month
  • After: $3.50 per 1 million requests

Data transfer:

  • First 1 GB per month free
  • After: $0.09 per GB

For small projects: You’ll likely stay in the free tier.

Real-World Cost Example

Scenario: Your API gets 10,000 requests per month.

Lambda:

  • Requests: 10,000 (free)
  • Compute: ~5,000 GB-seconds (free)
  • Cost: $0

API Gateway:

  • Requests: 10,000 (free)
  • Data transfer: ~100 MB (free)
  • Cost: $0

Total: $0 (within free tier)

If you get 2 million requests:

  • Lambda: 1M free + 1M × $0.20 = $0.20
  • API Gateway: 1M free + 1M × $1.00 = $1.00
  • Total: $1.20

Still very cheap.

Why Serverless is Cheap for Small Projects

Traditional server (EC2):

  • $7.20/month minimum (even with 0 requests)
  • You pay for 24/7 uptime

Serverless (Lambda + API Gateway):

  • $0 for low traffic (free tier)
  • Pay only when used

Break-even point: Around 1-2 million requests per month. Below that, serverless is cheaper.

Understanding What You Might Be Billed For

Lambda:

  • Requests (after free tier)
  • Compute time (after free tier)
  • Data transfer out (usually free for small amounts)

API Gateway:

  • Requests (after free tier)
  • Data transfer (after free tier)

Other services (if you add them):

  • CloudWatch Logs: First 5 GB free, then $0.50/GB
  • DynamoDB: Free tier available
  • S3: Free tier available

For this tutorial: Everything should be free (within free tier).

Cleanup Checklist

When you’re done experimenting, clean up to avoid unexpected charges.

Step 1: Delete API Gateway

  1. Go to API Gateway
  2. Select your API
  3. Click “Actions” → “Delete”
  4. Confirm deletion

Why: API Gateway itself doesn’t cost much, but it’s good practice to clean up.

Step 2: Delete Lambda Function

  1. Go to Lambda
  2. Select your function
  3. Click “Actions” → “Delete”
  4. Confirm deletion

Why: Lambda is free for low usage, but delete if you’re not using it.

Step 3: Delete CloudWatch Log Groups

  1. Go to CloudWatch → Log groups
  2. Find /aws/lambda/notes-api (or your function name)
  3. Select it
  4. Click “Actions” → “Delete log group”
  5. Confirm

Why: Logs cost money after the free tier (5 GB). Delete old logs.

Step 4: Verify No Charges

  1. Go to AWS Billing Dashboard
  2. Check “Current charges”
  3. Should be $0 (within free tier)

Note: AWS bills monthly. Check again next month to be sure.

Responsible Cloud Use

Best practices:

  • Delete resources when done experimenting
  • Set up billing alerts (get notified if charges exceed threshold)
  • Use free tier when possible
  • Monitor usage in AWS Cost Explorer

Billing alerts:

  1. Go to AWS Billing → Preferences
  2. Enable “Receive Billing Alerts”
  3. Go to CloudWatch → Alarms
  4. Create billing alarm (e.g., alert if charges > $5)

What If You Want to Keep It Running?

If you want to keep your API running:

Option 1: Keep it as-is

  • Monitor usage
  • Stay within free tier
  • Delete if you stop using it

Option 2: Add monitoring

  • Set up CloudWatch alarms
  • Monitor request count
  • Get alerts if usage spikes

Option 3: Add a database

  • Use DynamoDB (free tier available)
  • Store notes persistently
  • Still likely free for small projects

Key Takeaways

Before the final summary:

  1. Lambda + API Gateway are cheap - Free tier covers most small projects
  2. Pay per use - Only pay when code runs
  3. Clean up when done - Delete functions, APIs, and logs
  4. Monitor usage - Set up billing alerts
  5. Free tier is generous - 1M requests/month for Lambda, 1M for API Gateway

What’s Next?

In the final page, we’ll summarize what you learned and suggest next steps for building on this foundation.