How the calculation works
One simplified model, full plus incrementals with grandfather-father-son (GFS) retention:
- One full copy of the protected data: the oldest daily restore point, the base the others build on.
- One incremental for each of the other daily restore points, each holding one day’s change.
- One full copy for each weekly, monthly and yearly restore point kept.
Total before reduction = protected data × (1 + weekly + monthly + yearly) + daily change × (daily points − 1).
Storage needed = total before reduction ÷ data reduction ratio (deduplication and compression together, n:1).
The model counts every weekly, monthly and yearly point as its own full copy and doesn’t model overlaps between them or data growth over the retention period, so for most setups the result is an upper bound. A daily change given as a percentage is taken of the protected data.
Costs, at your prices only. No published prices are built in.
- Monthly storage = storage needed × your price per GB or TB a month.
- One full restore = the data read back × your retrieval and egress price per GB or TB. The data read back is the full (logical) size, or the stored size (÷ the ratio) if your backup software pulls the reduced data and expands it on site.
Units. Sizes are decimal (1 GB = 10⁹ bytes, 1 TB = 10¹² bytes). Some providers bill binary gigabytes (2³⁰ bytes, about 7% larger), so a bill can differ slightly from the result.
Worked example
50 TB protected, 2% daily change, keeping 14 daily, 4 weekly, 12 monthly and 1 yearly restore point, with 4:1 data reduction. The prices are illustrations, not market rates: $5 per TB a month for storage and $20 per TB to retrieve.
- Daily change: 2% of 50 TB = 1 TB
- Full copies: 1 base + 4 weekly + 12 monthly + 1 yearly = 18 × 50 TB = 900 TB
- Incrementals: the base full is the oldest daily point, so 13 × 1 TB = 13 TB
- Total before reduction: 913 TB; at 4:1, 228.25 TB of storage
- Monthly storage: 228.25 TB × $5 = $1,141.25
- One full restore reading the full 50 TB: 50 × $20 = $1,000.00
If the backup software reads the stored data instead, the restore reads 50 TB ÷ 4 = 12.5 TB. With the same prices quoted per GB ($0.005 per GB a month and $0.02 per GB to retrieve), the monthly cost is the same $1,141.25 and one full restore costs $250.00.

