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Understanding your AWS S3 billing is crucial to effectively manage and reduce your costs. Charges in AWS S3 are primarily based on three factors: the amount of data you store, the number of requests you make, and data transfer fees. Storage costs are calculated per gigabyte (GB) stored, which are tiered depending on the total size of your data. Requests costs are incurred with each put, get, or list operation on your objects, with prices varying based on the type of request.