Set up a low-cost Azure SQL Database for development and testing at just $5/month. Follow these steps to configure a budget-friendly and efficient solution.
Discover how to set up an affordable Azure SQL Database for your development and testing needs for just $5 a month. This comprehensive guide walks you through each step, ensuring you maximize efficiency and minimize costs. Perfect for developers and testers looking to leverage Azure’s powerful features without breaking the bank. Learn how to optimize your database environment today!
Prerequisites
Before diving into creating a low-cost Azure SQL Database for development and testing, make sure you have the following:
- Microsoft Azure Account: Ensure you have an active Azure account. If you don’t have one, you can sign up for a free account which includes credits to get you started.
- Basic Knowledge of SQL and Databases: Familiarity with SQL queries and database management concepts will be beneficial.
- Azure Subscription: Ensure your Azure subscription is active and configured with the necessary billing information.
Having these prerequisites in place will ensure a smooth setup process for your low-cost Azure SQL Database.
Create a new low cost Azure SQL DB resource
Login to Azure Portal and click on Create a resource.

Search for “Azure SQL” and click on “Create.”

Choose SQL databases as the SQL deployment options. Click Create by selecting Single database.

Select your subscription and choose a resource group for creating the resource. If you don’t have a resource group, click “Create new” to set one up.

Enter a database name. You can either choose an existing server or create a new one. We will proceed by creating a new server.

Enter a server name and select a location.

Choose your preferred authentication method for accessing your SQL server. I will select both SQL and Microsoft Entra authentication. If using Entra ID authentication, set an admin as well. For SQL authentication, provide a server admin login and password.

Keep all the settings at default and click on “Configure database” under Compute + storage. This step is crucial for configuring your low-cost Azure SQL Database. By default, Azure selects a high configuration that costs $300 per month.

Select the DTU-based service tier, which has a fixed monthly cost. Alternatively, you can choose the serverless service tier, which is cheaper but may increase significantly with higher load. The DTU-based tier ensures that your cost will not exceed $5 per month.

Finally, review and create. Keep all settings at their default values. We will not cover other aspects of configuration, as this article focuses solely on setting up a low-cost Azure SQL Database.
Conclusion
We have successfully created a low-cost Azure SQL Database for development and testing purposes. This setup ensures you can efficiently work with a reliable database environment while keeping costs under $5 per month. By following these steps, you’ve configured a cost-effective solution tailored to meet the needs of your development and testing scenarios, making it easier to manage resources and budget effectively.


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