If you take a look to you dashboards instance chart: You will be
billed for Active Instances + Max Idle Instances.
See this post: 
http://groups.google.com/group/google-appengine/browse_thread/thread/727f420db5b111cc

On Sep 5, 10:49 am, Andrin von Rechenberg <[email protected]> wrote:
> That wont help in our case. As I tried to explain before, we need 200
> instances
> if we serve 240 qps at 800 ms. (240qps * 0.8s = ~200 instances).
> 75% of the time they are idle, waiting for rpc responses (mostly datastore)
> in
> order to handle the current response. So they need to be running and can't
> be shut
> down. At least that's our understanding. Or am I wrong?
>
> -Andrin
>
>
>
>
>
>
>
> On Mon, Sep 5, 2011 at 10:25 AM, Philip <[email protected]> wrote:
> > Hi Andrin,
>
> > have you tried the Max Idle Instances knob? If you set it to 1 for
> > example you will only be billed for the instances that are used + 1
> > idle instance.
>
> > On Sep 5, 10:11 am, Andrin von Rechenberg <[email protected]> wrote:
> > > Hi there
>
> > > We are running a Python GAE service called MiuMeet.
>
> > > The current cost is about $296 per day. In November it will be $600 per
> > day.
>
> > > Most of our cost comes from the Frontend Instance hours. We apparently
> > need
> > > 4677h per day, thats roughly 200 instances. We peak at around 240 qps.
> > The
> > > average latency is 800ms / request. 240 * 0.8 => 192. So it seems 200
> > > instances
> > > is exactly what we need at peak.
>
> > > However our instances are only 25% active, see here:http://bit.ly/pXZH4t
>
> > > We need someone to talk to about the new pricing model and what can be
> > done.
> > > Idle instances will cost us an extra $10k per month. We can't afford
> > that.
>
> > > The biggest problem we see is that it seems that AppEngine instances are
> > > idle
> > > often by design: The datastore is slow you have to wait and idle around,
> > > that's
> > > a fact for us.
>
> > > We would be really grateful for any advice.
>
> > > -Andrin, Founder of MiuMeet
>
> > > PS: Here is our billing comparison
>
> > >   Resource Used Free Billable Charge *CPU Time:*
> > > $0.10/CPU hour 2,797.15 6.50 2,790.65 $279.07 *Bandwidth Out:*
> > > $0.12/GByte 109.32 1.00 108.32 $13.00 *Bandwidth In:*
> > > $0.10/GByte 30.55 1.00 29.55 $2.96 *Stored Data:*
> > > $0.005/GByte-day 101.13 1.00 100.13 $0.51 *Recipients Emailed:*
> > > $0.10/1000 Emails 0.00 2.00 0.00 $0.00 *High Replication Storage:*
> > > $0.008/GByte-day 109.92 0.50 109.42 $0.88 *Backend Usage:*
> > > Prices<
> >http://code.google.com/appengine/docs/billing.html#Billable_Quota_Uni...>
> > > $0.00 $0.72 $0.00 $0.00 *Always On:*
> > > $0.30/Day No - - $0.00 *Total:* $296.42
> > >  Estimated Charges Under New Pricing
>
> > > The charges below are estimates of what you would be paying once App
> > > Engine's new pricing
> > > model<http://www.google.com/enterprise/cloud/appengine/pricing.html>
> > > goes
> > > live. The amounts shown below are for your information only, they are not
> > > being charged and therefore do not affect your balance.
>
> > > If you would like to optmize your application to reduce your costs in the
> > > future, make sure to read our Optimization
> > > Article<
> >http://code.google.com/appengine/articles/managing-resources.html>.
> > > If you have any additional questions or concerns, please contact us at:
> > > [email protected].
> > >  Frontend Instance Hour costs reflect a 50% price reduction active until
> > > November 20th, 2011.
> > >  Resource Used Free Billable Charge *Frontend Instance Hours:*
> > > $0.04/Hour 4,677.04 24.00 4,653.04 $186.13 *Backend Instance Hours:*
> > > $0.08/Hour 0.00 9.00 0.00 $0.00 *Datastore Storage:*
> > > $0.008/GByte-day 109.92 1.00 108.92 $0.88 *Blobstore Storage:*
> > > $0.0057/GByte-day 101.13 5.00 96.13 $0.55 *Datastore Writes:*
> > > $1.00/Million Ops 55.69 0.05 55.64 $55.64 *Datastore Reads:*
> > > $0.70/Million Ops 87.12 0.05 87.07 $60.95 *Small Datastore Operations:*
> > > $0.10/Million Ops 192.77 0.05 192.72 $19.28 *Bandwidth In:*
> > > $0.10/GByte 30.55 1.00 29.55 $2.96 *Bandwidth Out:*
> > > $0.15/GByte 109.32 1.00 108.32 $16.25 *Emails:*
> > > $0.01/100 Messages 0.00 1.00 0.00 $0.00 *XMPP Stanzas:*
> > > $0.01/1000 Stanzas 0.00 1.00 0.00 $0.00 *Opened Channels:*
> > > $0.01/100 Opens 7,180.91 1.00 7,179.91 $71.80 *Total*:* (before clipping
> > to
> > > daily budget) $414.44
>
> > > * Note this total does not take into account the minimum per-application
> > > charge in the new pricing
> > > model<http://www.google.com/enterprise/appengine/appengine_pricing.html>
> > > .
>
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