Savings Plans is a flexible pricing model that offers low prices on EC2, Lambda and Fargate usage, in exchange for a commitment to a consistent amount of usage (measured in $/hour) for a 1 or 3 year term. When you sign up for Savings Plans, you will be charged the discounted Savings Plans price for your usage up to your commitment. For example, if you commit to $10 of compute usage an hour, you will get the Savings Plans prices on that usage up to $10 and any usage beyond the commitment will be charged On Demand rates.