diff --git a/utils/hosting_utils.py b/utils/hosting_utils.py
index 7c1a83ad..dae8e412 100644
--- a/utils/hosting_utils.py
+++ b/utils/hosting_utils.py
@@ -9,3 +9,16 @@ def get_all_public_keys(customer):
     """
     return UserHostingKey.objects.filter(user_id=customer.id).values_list(
         "public_key", flat=True)
+
+
+def get_vm_price(cpu, memory, disk_size):
+    """
+    A helper function that computes price of a VM from given cpu, ram and
+    ssd parameters
+
+    :param cpu: Number of cores of the VM
+    :param memory: RAM of the VM
+    :param disk_size: Disk space of the VM
+    :return: The price of the VM
+    """
+    return (cpu * 5) + (memory * 2) + (disk_size * 0.6)