diff --git a/README.md b/README.md
index 99e37d7..3c08459 100644
--- a/README.md
+++ b/README.md
@@ -54,6 +54,7 @@ The project demonstrates practical cloud deployment concepts including:
 
 # Application Architecture
 
+
 ## High-Level Architecture
 
 ```text
@@ -63,4 +64,37 @@ NGINX Reverse Proxy (HTTPS)
       ↓
 Flask Backend Container
       ↓
-PostgreSQL Database Container
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+PostgreSQL Database Container
+
+# Cost Analysis
+
+Estimated yearly operational cost for the Cloud Notes Platform application assuming:
+
+- approximately 1000 users per day
+- 50GB database storage
+- continuous 24/7 uptime
+- HTTPS public access enabled
+
+| Cloud Resource | Configuration | Billing Type | Estimated Cost |
+|---|---|---|---|
+| AWS EC2 Virtual Machine | t3.micro Ubuntu instance | Monthly | 6–8 EUR/month |
+| AWS EBS Storage | 50GB persistent volume | Monthly | 5–7 EUR/month |
+| Network Traffic | Moderate public traffic | Monthly | 1–3 EUR/month |
+| DuckDNS Domain | Public DNS service | Free | 0 EUR |
+| Let's Encrypt SSL Certificate | HTTPS certificate | Free | 0 EUR |
+
+---
+
+## Estimated Yearly Cost
+
+| Resource | Yearly Cost |
+|---|---|
+| EC2 Virtual Machine | 72–96 EUR/year |
+| Persistent Storage | 60–84 EUR/year |
+| Network Traffic | 12–36 EUR/year |
+| Domain & SSL | Free |
+
+### Total Estimated Yearly Cost
+
+```text
+144–216 EUR/year
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