# Unconverted convertible EC2 Reserved Instances Canonical: https://www.pointfive.co/efficiency-hub/inefficiencies/unconverted-convertible-ec2-reserved-instances Convertible Reserved Instances provide valuable pricing flexibility - but that flexibility is often underused. By: Jason DiDomenico Updated: 2026-09-28 [Cloud Efficiency Hub](https://www.pointfive.co/efficiency-hub) # Unconverted Convertible EC2 Reserved Instances The short version Convertible Reserved Instances provide valuable pricing flexibility - but that flexibility is often underused. [Jason DiDomenico](https://www.linkedin.com/in/jasondidomenico/) Director of FinOps @ Discover Financial Services AWS service [AWS EC2](https://www.pointfive.co/efficiency-hub/cloud-services/aws-ec2) Category [Compute](https://www.pointfive.co/efficiency-hub/service-category/compute) Reference CER-0167 Type Underutilized Commitment ## Explanation Why the waste happens and who it affects. When EC2 workloads shift across instance families or OS types, the original RI may no longer apply to active usage. If the RI is not converted, the customer continues paying for unused commitment despite having the ability to adapt it. Because conversion is a manual process and requires matching or exceeding the original RI's value, many organizations fail to optimize their coverage. Over time, this leads to growing pools of ineffective RIs that could have been aligned to real workloads. ## Billing model The pricing dimensions that drive this cost. - Convertible RIs are billed hourly based on the original reservation terms - Charges continue regardless of actual instance usage - RIs must be actively converted to align with changing usage - past underutilization is not refunded ## How to detect 4 checks to find it in your estate. - Identify Convertible RIs with low utilization over a trailing period - Compare current EC2 usage to the instance types, families, and configurations reserved under each RI - Highlight RIs that are eligible for conversion but remain mismatched to actual compute patterns - Evaluate how much unused commitment could be recovered through a conversion ## How to fix 4 ways to remove the waste. - Use the AWS Management Console or CLI to convert unused Convertible RIs to match current EC2 instance usage - Ensure the new reservation configuration has equal or greater value, as required by AWS - Monitor usage regularly to identify when new conversions may be needed - Build RI optimization reviews into quarterly infrastructure hygiene practices to prevent recurring waste ## Documentation Vendor references for pricing and configuration. - [Exchange Convertible Reserved Instances docs.aws.amazon.com](https://docs.aws.amazon.com/AWSEC2/latest/UserGuide/ri-convertible-exchange.html) - [AWS EC2 Pricing - Reserved Instances aws.amazon.com](https://aws.amazon.com/ec2/pricing/reserved-instances/) ## Related inefficiencies [Browse the library](https://www.pointfive.co/efficiency-hub) - AWS EC2 CER-0151 ### [Underutilized EC2 Commitment Due to Workload Drift](https://www.pointfive.co/efficiency-hub/inefficiencies/underutilized-ec2-commitment-due-to-workload-drift) When EC2 usage declines, shifts to different instance families, or moves to other services (e.g., containers or serverless), organizations may find that previously purchased Standard Reserved Instances or Savings Plans no longer match... Compute - AWS EC2 CER-0327 ### [Spot Instance Overreliance Without Effective Cost-Per-Performance Analysis](https://www.pointfive.co/efficiency-hub/inefficiencies/spot-instance-overreliance-without-cost-per-performance-analysis) Organizations frequently pursue aggressive Spot Instance adoption based on headline discount percentages - up to 90% off On-Demand pricing - without evaluating the effective cost per unit of work completed. While Spot pricing can deliver... Compute - AWS EC2 CER-0324 ### [Excessive On-Demand Compute Spend Due to Low Savings Plan and Reserved Instance Coverage](https://www.pointfive.co/efficiency-hub/inefficiencies/excessive-on-demand-compute-spend-due-to-low-savings-plan-and-reserved-instance-coverage) AWS compute services charge the full published On-Demand rate when no commitment-based discount - such as a Savings Plan (SP) or Reserved Instance (RI) - is in effect. On-Demand pricing provides maximum flexibility, but it is also the most... Compute --- Source: the public page above. Product screenshots and illustrative interfaces are examples, not live customer data.