AWS

EC2 Rightsizing: The Complete Guide to Saving Money

Step-by-step guide to rightsizing your EC2 instances. Learn how to identify oversized instances, analyze metrics, and implement changes safely.

CloudSavvy Team

Cloud Cost Experts

January 12, 2026
9 min read

What is EC2 Rightsizing?

Rightsizing is the process of matching your EC2 instance types and sizes to your workload performance and capacity requirements at the lowest possible cost.

Why Rightsizing Matters

Studies show that 35-45% of cloud resources are over-provisioned. This translates to:

  • Wasted compute capacity
  • Unnecessary spending
  • Missed optimization opportunities

Identifying Rightsizing Opportunities

Key Metrics to Analyze

CPU Utilization:

  • Average below 20%: Likely oversized
  • Peak below 50%: Consider downsizing
  • Consistent 70%+: Appropriately sized
Memory Utilization:
  • Requires CloudWatch agent installation
  • Analyze peak vs. average usage
  • Consider memory-optimized instances if memory-bound
Network I/O:
  • Check if hitting network limits
  • Consider enhanced networking instances if constrained

Analysis Period

  • Minimum 14 days of data
  • Include peak usage periods
  • Account for batch jobs and scheduled tasks

Safe Rightsizing Process

    • Baseline: Document current configuration and performance
    • Analyze: Review 2+ weeks of metrics
    • Test: Resize in non-production first
    • Monitor: Watch for performance issues
    • Iterate: Make incremental changes

AWS Tools for Rightsizing

AWS Compute Optimizer:

  • ML-based recommendations
  • Considers multiple metrics
  • Provides confidence levels
CloudWatch:
  • Historical metrics
  • Custom dashboards
  • Alarm configuration
Cost Explorer:
  • Rightsizing recommendations
  • Savings estimates
  • Reservation coverage

CloudSavvy Rightsizing Features

CloudSavvy enhances rightsizing with:

  • Recommendations across AWS and Azure
  • Estimated savings for each suggestion
  • One-click analysis reports
  • Historical trend analysis

Common Rightsizing Mistakes

Avoid these pitfalls:

  • Rightsizing without sufficient data
  • Ignoring memory metrics
  • Not considering burst workloads
  • Failing to test changes
  • Making too many changes at once

Conclusion

EC2 rightsizing is one of the highest-impact optimizations you can make. Start with your largest instances, analyze metrics carefully, and make changes incrementally.

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