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Merge pull request #247007 from bandersmsft/choose-commit-amount
MCM - Minor update to choose-commit-amount for sotware not covered
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articles/cost-management-billing/savings-plan/choose-commitment-amount.md

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ms.subservice: savings-plan
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ms.custom: ignite-2022
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ms.topic: how-to
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ms.date: 02/03/2023
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ms.date: 08/01/2023
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ms.author: banders
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---
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# Choose an Azure saving plan commitment amount
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You should purchase savings plans based on consistent base usage. Committing to a greater spend than your historical usage could result in an underutilized commitment, which should be avoided when possible. Unused commitment doesn't carry over from one hour to the next. Usage exceeding the savings plan commitment is charged using more expensive pay-as-you-go rates.
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Software costs aren't covered by savings plans. For more information, see [Software costs not included in saving plans](software-costs-not-included.md).
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## Savings plan purchase recommendations
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Savings plan purchase recommendations are calculated by analyzing your hourly usage data over the last 7, 30, and 60 days. Azure simulates what your costs would have been if you had a savings plan and compares it with your actual pay-as-you-go costs incurred over the time duration. The commitment amount that maximizes your savings is recommended. To learn more about how recommendations are generated, see [How hourly commitment recommendations are generated](purchase-recommendations.md#how-hourly-commitment-recommendations-are-generated).

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