vRealize Business for Cloud uses the utilization cost model to allocate the cost. The utilization cost model allocates the cost in proportion to the actual utilization of server CPU and memory resources of the virtual machines.

After the base rate is computed, vRealize Business for Cloud reads different attributes of the virtual machine, such as usage, additional services of virtual machine such as fault tolerance, and then prepares the costs by using each parameter. These costs are computed on a daily basis and are added to calculate the monthly costs.

The list of virtual machines in the Resource Cost page are categorized according to the server generation that the virtual machine belongs to. If a virtual machine is deleted, the cost of virtual machine is not considered for the current month. Generation refers to the release date of server in the market. For example, the virtual machines hosted on servers released in the year 2009 appear under a single group heading.