updated reservation-trade-in

Author: bandersmsft

articles/cost-management-billing/savings-plan/media/reservation-trade-in/pricing-calculator-monthly-example.png

@@ -8,21 +8,16 @@ ms.service: cost-management-billing
 ms.subservice: savings-plan
 ms.custom: ignite-2022
 ms.topic: how-to
-ms.date: 12/06/2022
+ms.date: 02/03/2023
 ms.author: banders
 ---
 
 # Self-service trade-in for Azure savings plans
 
-Azure savings plans provide flexibility to help meet your evolving needs by providing discounted rates for VMs, dedicated hosts, container instances, Azure premium functions and Azure app services, across all supported regions.
-
-If you find that your Azure VMs, Dedicated Hosts, or Azure App Services reservations, don't provide the necessary flexibility you require, you can trade these reservations for a savings plan. When you trade-in a reservation and purchase a savings plan, you can select a savings plan term of either one-year to three-year.
+If you find that your [Azure Virtual Machines](https://azure.microsoft.com/pricing/details/virtual-machines/windows/), [Dedicated Hosts](https://azure.microsoft.com/pricing/details/virtual-machines/dedicated-host/), or [Azure App Service](https://azure.microsoft.com/pricing/details/app-service/windows/) reservations, don't provide the necessary flexibility you require, you can trade these reservations for a savings plan. When you trade-in a reservation and purchase a savings plan, you can select a savings plan term of either one-year to three-year.
 
 Although you can return the above offerings for a savings plan, you can't exchange a savings plan for them or for another savings plan.
 
-> [!NOTE]
-> Exchanges will be unavailable for Azure reserved instances for compute services purchased on or after **January 1, 2024**. Azure savings plan for compute is designed to help you save broadly on predictable compute usage. The savings plan provides more flexibility needed to accommodate changes such as virtual machine series and regions. With savings plan providing the flexibility automatically, we’re adjusting our reservations exchange policy. You can continue to exchange VM sizes (with instance size flexibility) but we'll no longer support exchanging instance series or regions for Azure Reserved Virtual Machine Instances, Azure Dedicated Host reservations, and Azure App Services reservations. For a limited time you may trade-in your Azure reserved instances for compute for a savings plan. Or, you may continue to use and purchase reservations for those predictable, stable workloads where you know the specific configuration you’ll need and want additional savings. For more information, see [Self-service exchanges and refunds for Azure Reservations](../reservations/exchange-and-refund-azure-reservations.md).
-
 The following reservations aren't eligible to be traded in for savings plans:
 
 - Azure Databricks reserved capacity
@@ -33,8 +28,11 @@ The following reservations aren't eligible to be traded in for savings plans:
 - SUSE Linux plans
 
 > [!NOTE]
-> - You must have owner access on the Reservation Order to trade in an existing reservation. You can [Add or change users who can manage a savings plan](manage-savings-plan.md#who-can-manage-a-savings-plan).
-> - Microsoft is not currently charging early termination fees for reservation trade ins. We might charge the fees made in the future. We currently don't have a date for enabling the fee.
+> Exchanges will be unavailable for Azure reserved instances for compute services purchased on or after **January 1, 2024**. Azure savings plan for compute is designed to help you save broadly on predictable compute usage. The savings plan provides more flexibility needed to accommodate changes such as virtual machine series and regions. With savings plan providing the flexibility automatically, we’re adjusting our reservations exchange policy. You can continue to exchange VM sizes (with instance size flexibility) but we'll no longer support exchanging instance series or regions for Azure Reserved Virtual Machine Instances, Azure Dedicated Host reservations, and Azure App Services reservations. For a limited time you may trade-in your Azure reserved instances for compute for a savings plan. Or, you may continue to use and purchase reservations for those predictable, stable workloads where you know the specific configuration you’ll need and want additional savings. For more information, see [Self-service exchanges and refunds for Azure Reservations](../reservations/exchange-and-refund-azure-reservations.md).
+
+
+- You must have owner access on the Reservation Order to trade in an existing reservation. You can [Add or change users who can manage a savings plan](manage-savings-plan.md#who-can-manage-a-savings-plan).
+- Microsoft isn't currently charging early termination fees for reservation trade ins. We might charge the fees made in the future. We currently don't have a date for enabling the fee.
 
 ## How to trade in an existing reservation
 
@@ -44,17 +42,51 @@ You can trade in your reservation from [Azure portal](https://portal.azure.com/#
   :::image type="content" source="./media/reservation-trade-in/exchange-refund-return.png" alt-text="Screenshot showing the Exchange window." lightbox="./media/reservation-trade-in/exchange-refund-return.png" :::
 1. For each reservation order selected, enter the quantity of reservation instances you want to return. The bottom of the window shows the amount that will be refunded. It also shows the value of future payments that will be canceled, if applicable.
 1. Select **Compute Savings Plan** as the product that you want to purchase.
-1. Enter a friendly name for the savings plan. Select the scope where the savings plan benefit will apply and select the term length. Scopes include shared, subscription, resource group, and management group.
+1. Enter the necessary information to complete the purchase. For more information, see [Buy a savings plan](buy-savings-plan.md#buy-a-savings-plan-in-the-azure-portal).
+
+## Determine savings plan commitment needed to replace your reservation
+
+During a reservation trade-in, the default hourly commitment for the savings plan is calculated using the remaining monetary value of the reservations that are being traded in. The resulting hourly commitment may not be a large enough benefit commitment to cover the virtual machines that were previously covered by the returned reservations. You can calculate the necessary savings plan hourly commitment to cover the reservations as follows:
+
+1. Follow the first six steps in [Estimate costs with the Azure pricing calculator](../manage/ea-pricing.md#estimate-costs-with-the-azure-pricing-calculator).
+2. Search for the product that you want to return.
+3. Select a savings plan term and operating system, if necessary.
+4. Select **Upfront** as the payment option. You're using the annual cost only because it's easier to work with in this calculation example.
+5. To determine the hourly commitment for the product, divide the upfront compute charge by:
+    - 8,760 for a one-year savings plan
+    - 26,280 for a three-year savings plan  
+        :::image type="content" source="./media/reservation-trade-in/pricing-calculator-upfront-example.png" alt-text="Example screenshot showing the Azure pricing calculator upfront compute charge value example." lightbox="./media/reservation-trade-in/pricing-calculator-upfront-example.png" :::
+1. Multiply the product’s hourly commitment by the number of instances you're trading-in.
+1. Repeat steps 2-6 for all reservation products you're trading-in.
+1. Enter the total of the above steps as the hourly commitment, then **Add** to your cart.
+1. Review and complete the transaction.
 
-By default, the hourly commitment is derived from the remaining value of the reservations that are traded in. Although it's the minimum hourly commitment you may make, it might not be a large enough benefit commitment to cover the VMs that were previously covered by the reservations that you're returning.
+The preceding image's price is an example.
 
-To determine the remaining commitment amount needed to cover your VMs:
+The preceding process assumes 100% utilization of the savings plan.
 
-1. Download your price sheet. For more information, see [View and download your Azure pricing](../manage/ea-pricing.md).
-1. Search the price sheet for the 1-year or 3-year savings plan rate for VM products associated with the reservations that you're returning.
-1. For each reservation, multiply the savings plan rate with the quantity you want to return.
-1. Enter the total of the above step as the hourly commitment, then **Add** to your cart.
-1. Review and complete the transaction.
+## Determine savings difference from reservations to a savings plan
+
+To determine the cost savings difference when switching from reservations to a savings plan, use the following steps.
+
+1. In the [Azure portal](https://portal.azure.com), navigate to **Reservations** to view your list of reservations.
+1. Select the reservation that you want to trade in and select **Exchange**.
+1. Under the Essentials section, select the **Reservation order ID**.
+1. In the left menu, select **Payments**.
+1. Depending on the payment schedule for the reservation, you're presented with either the monthly or full cost of the reservation. You need the monthly cost. If necessary, divide the value by either 12 or 36, depending on the reservation term.
+1. Multiply the monthly cost of the reservation by the number of instances you want to return. For example, the total monthly reservation cost.
+1. To determine the monthly cost of an equivalent-capable savings plan, follow the first six steps in [Estimate costs with the Azure pricing calculator](../manage/ea-pricing.md#estimate-costs-with-the-azure-pricing-calculator).
+1. Search for the compute product associated with the reservation that you want to return.
+1. Select savings plan term and operating system, if necessary.
+1. Select **Monthly** as the payment option. It's the monthly cost of a savings plan providing equivalent coverage to a resource that was previously covered by the reservation.  
+    :::image type="content" source="./media/reservation-trade-in/pricing-calculator-monthly-example.png" alt-text="Example screenshot showing the Azure pricing calculator monthly compute charge value example." lightbox="./media/reservation-trade-in/pricing-calculator-monthly-example.png" :::
+1.	Multiply the cost by the number of instances that are currently covered by the reservations to be returned.
+
+The preceding image's price is an example.
+
+The result is the total monthly savings plan cost. The difference between the total monthly savings plan cost minus the total monthly reservation cost is the extra cost incurred by moving resources covered by reservations to a savings plan.
+
+The preceding process assumes 100% utilization of both the reservation(s) and savings plan.
 
 ## How transactions are processed