Azure Functions Pricing (2026)
Serverless functions let you run code without provisioning servers. You pay only for the compute time consumed, billed in millisecond increments. Ideal for event-driven architectures and microservices. Functions offers Durable Functions for stateful workflows and premium plan for VNet integration. Starting from $0.0000/hr ($0.00/mo) for Standard - Standard Total Executions.
Key Features
- ✓Zero server management - deploy code, not infrastructure
- ✓Pay per invocation and compute time (millisecond billing)
- ✓Auto-scales from zero to thousands of concurrent executions
- ✓Multiple runtime support: Node.js, Python, Go, Java, .NET, and more
- ✓Native integration with cloud events (queues, storage, HTTP)
Common Use Cases
API Backends
Build RESTful and GraphQL APIs that scale automatically with request volume.
Event Processing
Process events from queues, storage uploads, database changes, and IoT devices.
Scheduled Tasks
Run cron jobs and scheduled data processing without managing always-on servers.
Data Transformation
Transform and enrich data in real-time as it flows between services.
On-Demand Pricing
Pay-as-you-go pricing with no upfront commitment. You are billed per hour of usage and can start or stop at any time. Hourly rates start at $0.0000/hr ($0.00/mo) for Standard - Standard Total Executions.
| Instance | Price/hr | Price/mo |
|---|---|---|
| Always Ready - Always Ready Execution Time | $0.0000 | $0.01 |
| Premium - Premium Memory Duration | $0.0123 | $8.98 |
| Always Ready - Always Ready Total Executions | $0.0000 | $0.00 |
| On Demand - On Demand Total Executions | $0.0000 | $0.00 |
| Standard - Standard Total Executions | $0.0000 | $0.00 |
| Always Ready - Always Ready Baseline | $0.0000 | $0.00 |
| Standard - Standard Execution Time | $0.0000 | $0.01 |
| On Demand - On Demand Execution Time | $0.0000 | $0.02 |
| Premium - Premium vCPU Duration | $0.1730 | $126.29 |
Reserved Instance & Savings Plans Pricing
Commit to 1 or 3 years for lower hourly rates.
| Instance | Price/hr | Price/mo | 1yr RI/hr | 3yr RI/hr |
|---|---|---|---|---|
| Always Ready - Always Ready Execution Time | $0.0000 | $0.01 | - | - |
| Premium - Premium Memory Duration | $0.0123 | $8.98 | - | - |
| Always Ready - Always Ready Total Executions | $0.0000 | $0.00 | - | - |
| On Demand - On Demand Total Executions | $0.0000 | $0.00 | - | - |
| Standard - Standard Total Executions | $0.0000 | $0.00 | - | - |
| Always Ready - Always Ready Baseline | $0.0000 | $0.00 | - | - |
| Standard - Standard Execution Time | $0.0000 | $0.01 | - | - |
| On Demand - On Demand Execution Time | $0.0000 | $0.02 | - | - |
| Premium - Premium vCPU Duration | $0.1730 | $126.29 | - | - |
How Functions Pricing Works
On-Demand
Pay per hour with no long-term commitment. Ideal for variable workloads and development environments.
Reserved / Committed Use
Commit to 1 or 3 years for significant discounts.
Spot / Preemptible
Use spare capacity at steep discounts. Best for fault-tolerant, batch, and stateless workloads.
Monthly Cost Examples
Azure Functions Free Tier
Free limit: 1M executions/mo. This free tier never expires and renews monthly.
Free Tier Comparison
| Provider | Service | Free Offering | Duration | Limit |
|---|---|---|---|---|
| Azure | Functions | Consumption plan | Always | 1M executions/mo |
| AWS | Lambda | Requests + compute | Always | 1M requests, 400K GB-sec/mo |
| GCP | Cloud Functions | Invocations + compute | Always | 2M invocations, 400K GB-sec/mo |
Frequently Asked Questions
What is Azure Functions?
Azure Functions is a cloud service offered by Microsoft Azure. It provides various configurations (9 pricing tiers available) with pay-as-you-go and committed-use pricing options.
How much does Azure Functions cost per month?
Prices range from $0.00/month for Standard - Standard Total Executions to $126.29/month for Premium - Premium vCPU Duration on On-Demand pricing in eastus.
Does Azure Functions have a free tier?
Azure offers various free tier options. Check the official Azure pricing page for the most current free tier details for Functions.
How many Azure Functions pricing tiers are available?
There are 9 pricing tiers available for Azure Functions. These range from entry-level configurations to high-performance options for enterprise workloads.
What pricing models does Azure Functions offer?
Azure Functions offers On-Demand (pay-per-hour, no commitment), Reserved/Committed Use (1-3 year commitments for significant discounts), and in some cases Spot/Preemptible pricing for interruptible workloads at the lowest cost.
When does serverless become more expensive than a dedicated instance?
Serverless is typically cheaper for sporadic or bursty workloads under ~1 million invocations per month. Once sustained utilization exceeds 30-40% of a dedicated instance, a reserved VM or container usually costs less. Profile your actual request patterns before committing to either model.