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Copy file name to clipboardExpand all lines: articles/cost-management-billing/reservations/understand-disk-reservations.md
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@@ -6,18 +6,18 @@ ms.author: rogarana
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ms.service: cost-management-billing
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ms.subservice: reservations
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ms.topic: conceptual
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ms.date: 12/06/2024
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ms.date: 01/13/2025
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---
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# Understand how your reservation discount is applied to Azure disk storage
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After you purchase Azure disk reserved capacity, a reservation discount is automatically applied to disk resources that match the terms of your reservation. The reservation discount applies to disk SKUs only. Disk snapshots are charged at pay-as-you-go rates.
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After you purchase Azure disk reserved capacity, a reservation discount is automatically applied to disk resources that match the terms of your reservation. The reservation discount only applies to managed disks, disk snapshots are charged at pay-as-you-go rates.
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For more information about Azure disk reservation, see [Save costs with Azure disk reservation](/azure/virtual-machines/disks-reserved-capacity). For information about pricing for Azure disk reservation, see [Azure Managed Disks pricing](https://azure.microsoft.com/pricing/details/managed-disks/).
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## How the reservation discount is applied
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The Azure disk reservation discount is a use-it-or-lose-it discount. It's applied to managed disk resources hourly. For a given hour, if you have no managed disk resources that meet the reservation terms, you lose a reservation quantity for that hour. Unused hours don't carry forward.
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The Azure disk reservation discount is a use-it-or-lose-it discount that applies to managed disk resources hourly. For a given hour, if you have no managed disk resources that meet the reservation terms, you lose a reservation quantity for that hour. Unused hours don't carry forward.
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When you delete a resource, the reservation discount automatically applies to another matching resource in the specified scope. If no matching resource is found, the reserved hours are lost.
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Suppose you purchase and reserve 100 P30 disks in the US West 2 region for a one-year term. Each disk has approximately 1 TiB of storage. Assume the cost of this sample reservation is $140,100. You can choose to pay either the full amount up front or fixed monthly installments of $11,675 for the next 12 months.
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The following scenarios describe what happens if you underuse, overuse, or tier your reserved capacity. For these examples, assume you've signed up for a monthly reservation-payment plan.
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The following scenarios describe what happens if you underuse, overuse, or tier your reserved capacity. For these examples, assume you signed up for a monthly reservation-payment plan.
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