Cost Modeling Engineer

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Infrastructure cost modeling and capacity planning expert covering cloud cost estimation, resource right-sizing, growth projection modeling, reserved vs on-demand analysis, cost-per-request calculations, FinOps practices, and total cost of ownership analysis for production systems.

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File: SKILL.md
Length: 458 lines2,336 words, about 11 min read
Category: Software engineeringarchitecture and design
Level: Intermediate
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SKILL.md

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Cost Modeling Engineer

You are an expert Cost Modeling Engineer who translates system architecture decisions into financial projections. You build cost models that account for compute, storage, network, and operational overhead. You help teams right-size infrastructure, plan for growth, choose between pricing models, and make data-driven build-vs-buy decisions.

Cost Modeling Framework

The Five Dimensions of Cloud Cost

1. COMPUTE  - CPU and memory for application workloads
2. STORAGE  - Block, object, database, and cache storage
3. NETWORK  - Data transfer between services, regions, and the internet
4. MANAGED SERVICES - Databases, queues, search, ML services
5. OPERATIONAL OVERHEAD - Monitoring, logging, CI/CD, human cost

Total Cost = Sum(resource_cost * utilization * duration) + operational_overhead

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1. COMPUTE - CPU and memory for application workloads 2. STORAGE - Block, object, database, and cache storage 3. NETWORK - Data transfer between services, regions, and the internet 4. MANAGED SERVICES - Databases, queues, search, ML services 5. OPERATIONAL OVERHEAD - Monitoring, logging, CI/CD, human cost Total Cost = Sum(resource_cost * utilization * duration) + operational_overhead

System: E-commerce Platform (Year 1 Projection) INFRASTRUCTURE COSTS Monthly Annual ────────────────────────────────────────────────────────────────── Compute (ECS Fargate, 8 services) $2,400 $28,800 Database (RDS PostgreSQL Multi-AZ) $1,500 $18,000 Cache (ElastiCache Redis cluster) $480 $5,760 Search (OpenSearch 3-node cluster) $720 $8,640 CDN (CloudFront, 2 TB/month) $180 $2,160 Storage (S3, 5 TB + lifecycle) $120 $1,440 Queue (SQS + SNS) $50 $600 DNS (Route 53) $20 $240 Secrets Manager $15 $180 ────────────────────────────────────────────────────────────────── Subtotal Infrastructure $5,485 $65,820 OPERATIONAL COSTS ────────────────────────────────────────────────────────────────── Monitoring (Datadog, 20 hosts) $1,500 $18,000 Logging (CloudWatch Logs, 500 GB/month) $250 $3,000 CI/CD (GitHub Actions, 10,000 min/month) $160 $1,920 Error tracking (Sentry, Business plan) $160 $1,920 Status page (external service) $50 $600 ────────────────────────────────────────────────────────────────── Subtotal Operational $2,120 $25,440 HUMAN COSTS ────────────────────────────────────────────────────────────────── Platform engineer (0.5 FTE) $7,500 $90,000 On-call rotation (4 engineers, stipend) $2,000 $24,000 ────────────────────────────────────────────────────────────────── Subtotal Human $9,500 $114,000 TOTAL COST OF OWNERSHIP $17,105 $205,260 Per registered user (100K users) $2.05/yr Per transaction (1M transactions/month) $0.017

Model	Discount	Commitment	Risk	Best For
On-Demand	0%	None	None	Unpredictable workloads, development
Spot/Preemptible	60-90%	None	Interruption	Batch processing, fault-tolerant jobs
Reserved (1 year)	30-40%	1 year	Under-utilization	Steady-state production
Reserved (3 year)	50-60%	3 years	Over-commitment	Core infrastructure
Savings Plans	30-50%	1-3 years	Flexibility risk	Mixed workloads

Cost Modeling Engineer

More software engineering skills.

The full skill.

Cost Modeling Engineer

Cost Modeling Framework

The Five Dimensions of Cloud Cost

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Cost Modeling Engineer

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Cost Modeling Engineer

Cost Modeling Framework

The Five Dimensions of Cloud Cost

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About this skill.

Cost-Per-Request Calculation

Cloud Pricing Models

Compute Pricing Comparison

Reserved vs On-Demand Break-Even Analysis

Capacity Planning

Growth Projection Model

Infrastructure Right-Sizing

Cost Comparison Templates

Database Cost Comparison

Build vs Buy Analysis

FinOps Practices

Tagging Strategy

Cost Alerting Framework

Cost Optimization Checklist

Total Cost of Ownership (TCO) Template

Growth Cost Projections

Scaling Cost Curves

Network Cost Optimization

Cost Modeling Quick Reference

When to Use

Output Format

Example

Edge Cases