Understanding Free Tier: What's Really Free on AWS

Sudharsanam VSudharsanam V
4 min read

the words "Free Tier" feel like a magic key when you're starting out with AWS. It’s like Amazon whispering, “Come on in, try everything — no charge.”
But here’s the twist that most beginners discover the hard way: Free doesn’t always mean free forever… or free completely.

If you’re just stepping into the cloud, this is your reality check — gentle, but necessary. Let’s decode what actually happens behind those shiny Free Tier labels.

The "12-Month Free" — Your Welcome Gift (But with Strings Attached)

When you first open your AWS account, you get access to a 12-month Free Tier. It covers popular services like EC2, S3, and RDS — sounds generous, right?
But here’s where things get interesting:

  • AWS gives you 750 hours of free EC2 use per month. That’s enough to run one t2.micro instance 24/7.
    ➔ Spin up two instances? You just stepped outside the free zone.

  • S3 storage offers 5GB free. But guess what?
    ➔ You’ll pay for PUT, GET requests and data transfer if you get a little too enthusiastic uploading and downloading files.

It’s like an all-you-can-eat buffet… where drinks and desserts come with hidden charges.

The "Always Free" Trap — Sounds Good, But Read the Fine Print

AWS also boasts "Always Free" services. These include things like:

  • 1 million Lambda requests per month

  • 1GB of DynamoDB storage

  • 1 million API Gateway calls

Sounds endless, right? But here’s the catch:

  • 1 million Lambda requests?
    ➔ Easy to cross if you accidentally build a script that loops… and loops… and loops.

  • API Gateway calls?
    ➔ One popular website post and boom — you’re suddenly billed because you crossed the free threshold before you even noticed.

It’s free… until it isn’t. And AWS won’t stop your services just because you crossed a line — it keeps running, and billing.

"Data Transfer" — The Silent Bill Climber

Ask any seasoned AWS user and they’ll tell you:
Data transfer charges are where beginners get stung the most.

You might think hosting your small app is free on the Free Tier.
But as soon as people start visiting, their requests pull data out of AWS — and every GB out comes with a price tag.

AWS gives you 1GB of free data transfer out per month. That’s barely enough if your friends check your app a few times. After that, you’re on the meter.

Real-World Example: Where Beginners Slip

Let’s say you’re a fresher building a small photo gallery app on AWS.

  • You launch an EC2 instance (thinking it’s free) ✅

  • Store 5GB of images in S3 (feels safe) ✅

  • Friends share your app link, and 100 people start downloading images ❌

Now your data transfer charges kick in. Your EC2 instance is still “free,” but you get a bill — small maybe, but unexpected. That’s when reality bites.

My EC2 Experience: A Classic Beginner Trap

When I started, I thought t2.micro EC2 instances were completely free as long as I kept things small.
So I launched one — smooth sailing.

Then I spun up a second one, thinking “Both are micro, so both are free, right?”
Wrong.

AWS Free Tier gives you 750 total hours per month, not per instance.

  • One server running 24/7? That’s 720 hours — all good.

  • Two servers? That’s 1,440 hours — and now you’re billed for the extra 690 hours.

It’s like a 750-hour Netflix plan for the family — one person watching is fine, but two people 24/7? You get charged extra.

So yeah, Free Tier feels generous… until you step just a little beyond. Lesson learned!

So, What's The Smart Move?

  • Track usage like a hawk: Set up billing alarms from Day 1. AWS lets you set alerts even when you cross $1.

  • Check both storage and transfer costs: Don’t just look at how much you’re storing — see how much data is moving in and out.

  • Pause and clean up: Done testing? Shut down EC2 instances, delete unused S3 buckets, and unhook services. AWS charges for existing, not just active usage.

So, here’s the takeaway:
AWS Free Tier is your best friend if you play by its rules. But the moment you go a little over — spin up an extra server, transfer more data, or forget to shut things down — that’s when the bill sneaks in.

Treat Free Tier like training wheels: great for learning but always watch your limits. Once you get this mindset early, you’ll save yourself from those surprise charges and feel more in control as you grow in the cloud world.

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Sudharsanam V
Sudharsanam V