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With Amazon EC2, you pay only for the computing time that you use. Amazon EC2 offers a variety of pricing options for different use cases. For example, if your use case can withstand interruptions, you can save with Spot Instances. You can also save by committing early and locking in a minimum level of use with Reserved Instances.
On-Demand
On-Demand Instances are ideal for short-term, irregular workloads that cannot be interrupted. No upfront costs or minimum contracts apply. The instances run continuously until you stop them, and you pay for only the computing time you use. You can increase or decrease your computing capacity depending on the demands of your application and only pay the specified hourly rates for the instance you use.
Checkout plans: https://aws.amazon.com/ec2/pricing/on-demand/
Savings Plans
AWS offers Savings Plans for several computing services, including Amazon EC2. Amazon EC2 Savings Plans enable you to reduce your compute costs by committing to a consistent amount of compute usage for a 1-year or 3-year term. This term commitment results in savings of up to 66% over On-Demand costs.
Any usage up to the commitment is charged at the discounted plan rate (for example, $10 an hour). Any usage beyond the commitment is charged at regular On-Demand rates.
Checkout plans: https://aws.amazon.com/ec2/pricing/reserved-instances/pricing/
Reserved Instances
Reserved Instances are a billing discount applied to the use of On-Demand Instances in your account. You can purchase Standard Reserved and Convertible Reserved Instances for a 1-year or 3-year term, and Scheduled Reserved Instances for a 1-year term. You realize greater cost savings with the 3-year option.
At the end of a Reserved Instance term, you can continue using the Amazon EC2 instance without interruption. However, you are charged On-Demand rates until you terminate the instance.
Spot Instance
Spot Instances are ideal for workloads with flexible start and end times, or that can withstand interruptions. Spot Instances use unused Amazon EC2 computing capacity and offer you cost savings at up to 90% off of On-Demand prices.
Spot instances are recommended for:
Applications that have flexible start and end times
Applications that are feasible only at very low compute prices
Users with urgent computing need for large amounts of additional capacity
Spot instance prices: https://aws.amazon.com/ec2/spot/pricing/
Dedicated host
Dedicated Hosts are physical servers with Amazon EC2 instance capacity that is fully dedicated to your use.
You can use your existing per-socket, per-core, or per-VM software licenses to help maintain license compliance. You can purchase On-Demand Dedicated Hosts and Dedicated Hosts Reservations. Of all the Amazon EC2 options that were covered, Dedicated Hosts are the most expensive.
Dedicated host pricing: https://aws.amazon.com/ec2/dedicated-hosts/pricing/