# Premiums and Term Lengths

Archera Guaranteed Commitments have two variable components — a **term length** and a **premium** — that are inversely related. The longer the term length, the lower the premium, and vice versa: shorter term lengths have higher premiums.

The **Guaranteed Commitment Premium** is the difference between the standard Savings Rate of the underlying standard RI/SP and the net savings rate of the Guaranteed Commitment. You can see the Guaranteed Commitment premiums on your invoice page.

Keep in mind, Guaranteed Commitment premiums are only assessed on **realized** savings. Meaning — if for some reason you can't use the underlying infrastructure, you aren't responsible for the premium.

## Related Resources

* [How Does Guaranteed Commitment Pricing Work?](https://docs.archera.ai/help-center/guaranteed-commitments/pricing)
* [What are Guaranteed Commitment allowances?](https://docs.archera.ai/help-center/guaranteed-commitments/allowances)
* [What are my Guaranteed Commitment billing options if I'm still on AWS Credits?](https://docs.archera.ai/help-center/guaranteed-commitments/billing-options-aws-credits)