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Introduction
Free service
Creating a free Virtual Machine (VM) in Azure requires navigating a few specific settings to ensure you stay within the “Free” tier.
In 2026, Microsoft offers 750 hours per month for 12 months on specific VM sizes.
Machine
The Azure B2ats_v2 (2 vCPUs, 1 GiB RAM, AMD-based) is a more modern, generally faster alternative to the B1s (1 vCPU, 1 GiB RAM), offering better performance for bursting workloads.
Both are available for free (750 hours/month) for 12 months, but B1s is being phased out, while B2ats_v2 provides superior efficiency and lower relative costs.
If you want to ensure you don’t accidentally burn through your $200 credit or get a bill, follow these rules:
| Resource | Required Setting for “Free” |
|---|---|
| VM Size | Must be Standard_B1s, Standard_B2pts_v2, or Standard_B2ats_v2. |
| OS Image | Look for the “Free services eligible” label in the image dropdown. |
| Disk | Stick to the 64 GB (P6) Premium SSD or smaller. Most Windows images default to 127 GB, which is not free. |
| Hours | 750 hours per month (enough for 1 VM running 24/7). |
Region
Each student subscription is limited to a small, subscription‑specific set of regions (typically around 5), and regions like Australia East, Central India, Japan East, etc., may be blocked even though the service is available there.
How to check your allowed regions:
- In the Azure portal, go to Azure Policy
- Navigate to Authoring > Assignments
- Open the policy named “Allowed resource deployment regions”
- Check the Allowed locations parameter only these regions will work for VM deployments
These regions are often in the US or a few international locations, and they vary by user.
Distribution
If you aren’t married to Windows, the free tier is much more flexible with Linux. You can run Ubuntu, Debian, or CentOS under the same 750-hour monthly allowance without the heavy licensing restrictions that come with Windows Client versions.
Tips to Avoid Charges
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The 750-Hour Limit: This is roughly 31 days. If you run one B1s VM, it’s free for the month. If you run two simultaneously, you’ll burn your 750 hours in 15 days and start being charged.
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Deallocate vs. Stop: Simply shutting down the OS inside the VM doesn’t stop billing. Always click Stop in the Azure Portal to ensure the VM is “Deallocated.”
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Check your Balance: Search for “Cost Management + Billing” in the portal to see how much of your credit is remaining.