AWS Cost Tagging

What are cost allocation tags in AWS?

The goal of cost allocation tagging is to enable you to track and control how AWS charges you for your resources. The tags are labels that help you track the resources you use. You can either have AWS charge you for each resource you use or have AWS charge you for a set amount of resources you use.

How to tag an AWS resource

There are two ways to tag resources in AWS. The first is using tags that are part of the AWS Billing System. Billing tags are the standard tags that AWS vendors use to manage their billing. You can see some examples of these tags in the AWS Billing System. The second way to tag resources is by using tags that AWS generates.

When to use Cost tracking with AWS tags

When you launch your account, using cost allocation tags in AWS is a critical first step. This is because it allows you to track the costs associated with resources that you launch. If you don’t do this now, you’ll be guessing at your costs in the future.

Lookup and use a tag in your billing report.

If you choose to use tags from the AWS Billing System, you’ll be able to look up the cost allocation for specific resources. We have an easy-to-use web app for this purpose. All you have to do is go to your AWS Management Console and click on the Billing tab.

Critical challenges with AWS cost allocation tags

As a rule of thumb, tracking the cost allocation for each resource you use is essential. This makes it easy to understand your cost exposure and forces you to be strategic about your resources. Unfortunately, managing the cost allocation for all your resources can be pretty challenging.

Best Practices for Using AWS Cost Allocation Tags

Start by looking up the cost allocation for all your resources. This will allow you to track costs for everything associated with them. Once you know the cost allocation for each resource, you can start tracking costs associated with other things that are associated with them.


There’s no doubt that AWS is a cost-prohibitive investment for most organizations. With such a high cost and constant change in pricing structures, it can be tough to control your costs. Fortunately, cost allocation tagging can help you track your AWS costs and also help you track costs for other things associated with AWS resources.



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