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Amazon RDS for MySQL states the following:

There is no additional charge for backup storage, up to 100% of your total database storage for a region. (Based upon our experience as database administrators, the vast majority of databases require less raw storage for a backup than for the primary dataset, meaning that most customers will never pay for backup storage.)

As far as I understand from searching the internet, they are taking incremental snapshots of the EBS volume. And retention period that can be selected is between 1 days and 35 days.

Could someone with experience comment on what percentage of storage will be required for a retention period of 35 days please? Is the above statement by Amazon for this maximum period?

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Your mileage is going to vary significantly depending on your RDBMS of choice and the type of data you're storing.

From my experience, DB backup storage is typically a fraction of the cost of the database itself.