Azure Cost

---
name: azure-cost
description: 'Unified Azure cost management: query historical costs, forecast future
  spending, and optimize to reduce waste. WHEN: "Azure costs", "Azure spending", "Azure
  bill", "cost breakdown", "cost by service", "cost by resource", "how much am I spending",
  "show my bill", "monthly cost summary", "cost tren...'
license: MIT
metadata:
  author: Microsoft
  version: 1.0.0
risk: safe
source: microsoft
---
# Azure Cost Management Skill

Unified skill for all Azure cost management tasks: querying historical costs, forecasting future spending, and optimizing to reduce waste.

## When to Use This Skill

Activate this skill when user wants to:
- Query or analyze Azure costs (how much am I spending, show my bill, cost breakdown)
- Break down costs by service, resource, location, or tag
- Analyze cost trends over time
- Forecast future Azure spending or project end-of-month costs
- Optimize Azure costs, reduce spending, or find savings
- Find orphaned or unused resources
- Rightsize Azure VMs, containers, or services
- Generate cost optimization reports

## Quick Reference

| Property | Value |
|----------|-------|
| **Query API Endpoint** | `POST {scope}/providers/Microsoft.CostManagement/query?api-version=2023-11-01` |
| **Forecast API Endpoint** | `POST {scope}/providers/Microsoft.CostManagement/forecast?api-version=2023-11-01` |
| **MCP Tools** | `azure__documentation`, `azure__extension_cli_generate`, `azure__get_azure_bestpractices` |
| **CLI** | `az rest`, `az monitor metrics list`, `az resource list` |
| **Required Role** | Cost Management Reader + Monitoring Reader + Reader on scope |

## MCP Tools

| Tool | Description | Parameters | When to Use |
|------|-------------|------------|-------------|
| `azure__documentation` | Search Azure documentation | `query` (Required): search terms | Research Cost Management API parameters and options |
| `azure__extension_cli_generate` | Generate Azure CLI commands | `intent` (Required): task description, `cli-type` (Required): `"az"` | Construct `az rest` commands for cost queries |
| `azure__get_azure_bestpractices` | Get Azure best practices | `intent` (Required): optimization context | Inform query design with cost management best practices |
| `azure__extension_azqr` | Run Azure Quick Review compliance scan | `subscription` (Required): subscription ID, `resource-group` (Optional): resource group name | Find orphaned resources and cost optimization opportunities |
| `azure__aks` | Azure Kubernetes Service operations | varies by sub-command | AKS cost analysis: list clusters, get node pools, inspect configuration |

> 💡 **Tip:** Prefer MCP tools over direct CLI commands. Use `az rest` only when MCP tools don't cover the specific operation.

---

## Routing

Read the user's request and follow the appropriate workflow below.

| User Intent | Workflow | Example Prompts |
|-------------|----------|-----------------|
| Understand current costs | [Cost Query Workflow](cost-query/workflow.md) | "how much am I spending", "cost by service", "show my bill" |
| Reduce costs / find waste | [Cost Optimization Workflow](cost-optimization/workflow.md) | "optimize costs", "find orphaned resources", "reduce spending" |
| Project future costs | [Cost Forecast Workflow](cost-forecast/workflow.md) | "forecast costs", "end of month estimate", "how much will I spend" |
| Full cost picture | All three workflows combined | "give me the full picture of my Azure costs" |

> **Important:** When optimizing costs, always present the total bill and cost breakdown alongside optimization recommendations.

---

## Scope Reference (Shared Across All Workflows)

| Scope | URL Pattern |
|-------|-------------|
| Subscription | `/subscriptions/<subscription-id>` |
| Resource Group | `/subscriptions/<subscription-id>/resourceGroups/<resource-group-name>` |
| Management Group | `/providers/Microsoft.Management/managementGroups/<management-group-id>` |
| Billing Account | `/providers/Microsoft.Billing/billingAccounts/<billing-account-id>` |
| Billing Profile | `/providers/Microsoft.Billing/billingAccounts/<billing-account-id>/billingProfiles/<billing-profile-id>` |

> 💡 **Tip:** These are scope paths only — not complete URLs. Combine with the API endpoint and version.

---

## Part 1: Cost Query Workflow

For the full cost query workflow (scope selection, report types, timeframes, dataset configuration, API calls, pagination, guardrails, examples, and error handling), see:

📄 **[Cost Query Workflow](cost-query/workflow.md)**

---

## Part 2: Cost Optimization Workflow

For the full cost optimization workflow (prerequisites, best practices, Redis/AKS-specific analysis, Azure Quick Review, resource discovery, cost queries, pricing validation, utilization metrics, and report generation), see:

📄 **[Cost Optimization Workflow](cost-optimization/workflow.md)**

---

## Part 3: Cost Forecast Workflow

For the full cost forecast workflow (scope selection, time period rules, dataset configuration, forecast-specific options, API calls, response interpretation, guardrails, and error handling), see:

📄 **[Cost Forecast Workflow](cost-forecast/workflow.md)**

---

## Data Classification

- **ACTUAL DATA** = Retrieved from Azure Cost Management API
- **ACTUAL METRICS** = Retrieved from Azure Monitor
- **VALIDATED PRICING** = Retrieved from official Azure pricing pages
- **ESTIMATED SAVINGS** = Calculated based on actual data and validated pricing

## Best Practices

- Always query actual costs first — never estimate or assume
- Always present the total bill alongside optimization recommendations
- Validate pricing from official sources — account for free tiers
- Use REST API for cost queries (more reliable than `az costmanagement query`)
- Save audit trail — include all queries and responses
- Include Azure Portal links for all resources
- For costs < $10/month, emphasize operational improvements over financial savings
- Never execute destructive operations without explicit approval

## Common Pitfalls

- **Assuming costs**: Always query actual data from Cost Management API
- **Ignoring free tiers**: Many services have generous allowances
- **Using wrong date ranges**: 30 days for costs, 14 days for utilization
- **Not showing the bill**: Always present cost breakdown alongside optimization recommendations
- **Cost query failures**: Use `az rest` with JSON body, not `az costmanagement query`

## Safety Requirements

- Get approval before deleting resources
- Test changes in non-production first
- Provide dry-run commands for validation
- Include rollback procedures

## SDK Quick References

- **Redis Management**: [.NET](cost-optimization/sdk/azure-resource-manager-redis-dotnet.md)