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Copy file name to clipboardExpand all lines: articles/cost-management-billing/reservations/reserved-instance-purchase-recommendations.md
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# How reservation recommendations are created
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Azure reserved instance (RI) purchase recommendations are provided through Azure Consumption [Reservation Recommendation API](/rest/api/consumption/reservationrecommendations), [Azure Advisor](../..//advisor/advisor-cost-recommendations.md#buy-reserved-virtual-machine-instances-to-save-money-over-pay-as-you-go-costs) and through reservation purchase experience whithin Azure portal.
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Following steps define how recommendations are calculated:
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- Recommendation engine evaluates hourly usage for your resources in the given scope over past 7, 30, and 60 days.
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- Based on the usage data, it simulates your costs with and without reservations.
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- These cost are simulated for different quantities, and the quantity that maximizes the savings is recommended.
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- If your resources are shut down regularly then the simulation will not find any savings and no purchase recommendation will be provided.
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Azure reserved instance (RI) purchase recommendations are provided through Azure Consumption [Reservation Recommendation API](/rest/api/consumption/reservationrecommendations), [Azure Advisor](../..//advisor/advisor-cost-recommendations.md#buy-reserved-virtual-machine-instances-to-save-money-over-pay-as-you-go-costs), and through the reservation purchase experience in the Azure portal.
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The following steps define how recommendations are calculated:
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1. The recommendation engine evaluates the hourly usage for your resources in the given scope over the past seven, 30, and 60 days.
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2. Based on the usage data, the engine simulates your costs with and without reservations.
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3. The costs are simulated for different quantities, and the quantity that maximizes the savings is recommended.
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4. If your resources are shut down regularly, the simulation won't find any savings, and no purchase recommendation is provided.
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## Recommendations in Azure Advisor
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Reservation purchase recommendations for virtual machines are available in Azure Advisor. Please note following:
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- Advisor only has single subscription scope recommendations.
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- Recommendations calculated with 30 day lookback period are available in Advisor.
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- If you purchase a sharedscope reservation, then Advisor reservation purchase recommendation might take up to 30 days to disappear.
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Reservation purchase recommendations for virtual machines are available in Azure Advisor. Keep in mind the following points:
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- Advisor has only single-subscription scope recommendations.
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- Recommendations that are calculated with a 30 day look-back period are available in Advisor.
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- If you purchase a shared-scope reservation, Advisor reservation purchase recommendations can take up to 30 days to disappear.
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## Other expected API behavior
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- When using a lookback period of seven days, you might not get recommendations when VMs are shut down for more than a day.
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- When using a look-back period of seven days, you might not get recommendations when VMs are shut down for more than a day.
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## Next steps
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- Learn about [how the Azure reservation discount is applied to virtual machines](../manage/understand-vm-reservation-charges.md).
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