Average usage billing
Encyclopedia
Most datacenters and hosting providers use the “95th Percentile” or "burstable billing"
Burstable billing
Burstable billing is a method of measuring bandwidth based on peak utilization. It also allows usage to exceed a specified threshold for brief periods of time without the financial penalty of purchasing a higher Committed Information Rate from an Internet service provider .Most ISPs use a five...

 method, while others utilize Average Usage Billing. Throughout the month, these host take measurement
Measurement
Measurement is the process or the result of determining the ratio of a physical quantity, such as a length, time, temperature etc., to a unit of measurement, such as the metre, second or degree Celsius...

s of your bandwidth
Bandwidth (computing)
In computer networking and computer science, bandwidth, network bandwidth, data bandwidth, or digital bandwidth is a measure of available or consumed data communication resources expressed in bits/second or multiples of it .Note that in textbooks on wireless communications, modem data transmission,...

usage every 5 minutes. At the end of the monthly cycle, these measurements are added together and divided by the number of measurements taken. Measuring of bandwidth in this manner results in a true “average” usage reading for your bandwidth bill.

Using this method allows hosts customers to take advantage of the natural peaks and valleys that occur from day to day bandwidth usage and not be over charged.
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