# About Potential Savings

The **Potential Savings** page highlights where you can reduce cloud spend based on policy-driven analysis. You’ll see actionable savings opportunities, track progress, and prioritize work based on effort and risk.

## How Potential Savings Are Calculated

* #### **Policy-Based Identification**

Every savings opportunity originates from a [policy violation](/optimize-cost-savings-and-recommendations/policy-violations.md) that highlights inefficiencies in your infrastructure—such as idle services, outdated instances, or over-provisioned capacity.

These evaluations are driven by [cost optimization policies](/govern-control-and-governance/cost-optimization-policies.md), which run daily across your cloud environment to detect areas of improvement.

* #### **AWS Pricing Comparison**

OneLens calculates potential savings by comparing the current cost of a resource with the cost of its recommended alternative using real-time AWS pricing data.

* #### **Monthly Potential Savings**

The calculated cost delta between the current and recommended state is **projected over 30 days** to reflect **monthly savings**.

#### Applied Example: Rightsizing an RDS Instance in Mumbai

Suppose you’re running an RDS instance of type `db.m7g.4xlarge` in the **Mumbai region**. OneLens detects underutilization and recommends a rightsizing action to **`db.m7g.2xlarge`**, based on the resource’s performance profile and violation attributes.

**Mumbai Region On-Demand Pricing:**

* `db.m7g.4xlarge`: **$1.916/hour**
* `db.m7g.2xlarge`: **$0.958/hour**

**Savings Calculation:**

* Hourly savings: $1.916 − $0.958 = **$0.958**
* Monthly potential savings: $0.958 × 24 × 30 = **$689.76**

This value—**$689.76**—is what OneLens displays as your **monthly potential savings** for this optimization opportunity.

{% hint style="success" %}
If multiple recommendations exist (e.g., two instance types based on performance), OneLens uses the most suitable one based on the policy violation's attributes.
{% endhint %}

To explore how potential savings are identified and displayed, visit the [Potential Savings page](/optimize-cost-savings-and-recommendations/saving-dashboard/view-potential-savings.md) for a comprehensive overview of the OneLens UI.


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