AWS EC2
has 2 different type of instances: Fixed Performance Instances(e.g. M3, C3 etc) and Burstable Performance Instances (e.g. T2). Fixed Performance Instances
provides a consistent CPU performance whereas Burstable Performance Instances
provide a baseline CPU performance
under normal workload. But when the workload increases Burstable Performance Instances
have the ability to burst, i.e. increase the CPU performance.
CPU Credit regulates the amount CPU burst of an instance. You can spend this CPU Credit to increase the CPU performance during the Burst period. Suppose you are operating the instance at 100% of CPU performance for 5 minutes, you will spend 5(i.e. 5*1.0)
CPU Credit. Similarly if you run an instance at 50% CPU performance for 5 minutes you will spend 2.5(i.e. 5*0.5)
CPU Credits.
CPU Credit Balance is simply the amount of CPU Credit available in your account at any moment.
When you create an instance you will get an initial CPU Credit. In every hour you will get certain amount of CPU credits automatically(this amount depends on the type of instance). If you don't burst the CPU performance the CPU Credit will be added to your CPU Credit Balance of your account. If you are out of CPU Credit(i.e. CPU Credit Balance turns into 0) your instance will work on baseline performance.
Read more on CPU Credits and Baseline Performance for Burstable Performance Instances