api-monitoring

API Error Budgets and SLA Math That Actually Works

3 min read
September 12, 2025

Define uptime targets for APIs that don’t blow up engineering velocity. Convert error budgets into monitors, alerts, and honest dashboards.

API Error Budgets and SLA Math That Actually Works

Executives love promising "five nines" while your APIs still bleed 500s. This guide shows you how to set real error budgets, wire them into exit1.dev, and enforce SLAs without hand-wavy spreadsheets.

Nail the reliability targets first

Forget vanity numbers. Pick metrics tied to customer pain:

  • Availability: Percentage of successful responses (2xx plus the payload validations from the API Endpoint Monitoring Playbook 2025).
  • Latency: 95th percentile under contractual thresholds.
  • Correctness: Schema-validated payloads with no missing fields.

Translate each target into an error budget. Example: 99.9% availability allows 43.2 minutes of downtime per month. Miss it and your roadmap pauses until reliability is back in compliance.

Map budgets to monitors

Error budgets are useless if you don’t instrument them. exit1.dev handles it without nickel-and-diming you for extra checks:

  1. Create monitors per API capability (auth, checkout, billing, webhooks).
  2. Add JSONPath assertions so you catch logical failures, not just HTTP errors.
  3. Configure multi-region probes—see Multi-Region Performance Tuning for the setup blueprint.

Group monitors into tags like tier:gold and tier:silver. Your gold tier drives the tight SLA math. Silver tier buys you more slack.

Alert routes that respect error budgets

Alert fatigue murders SLAs. Tie alerts directly to budget burn:

  • Send Slack pings only after two consecutive failures. Copy the approach from Free Uptime Monitor Slack Integration.
  • Trigger PagerDuty when downtime exceeds 25% of the monthly budget.
  • Email product and customer success weekly with uptime stats so they don’t promise nonsense on sales calls.

If an incident blows past the budget, run a postmortem instantly. Use the templates in Incident Postmortem Templates with exit1.dev and link the final doc to your SLA tracker.

Report with brutal transparency

Executives sign SLAs to close deals. Make them own the reliability reality too.

  • Publish a dashboard with uptime per API, latency percentiles, and remaining budget.
  • Export monitor results via webhooks to your warehouse. Combine with Exit1 Logs to Warehouse CSV/Excel so finance sees the same truth.
  • Include customer-impact annotations from support tickets or status page posts.

When the budget goes negative, freeze new feature launches. Nothing motivates leadership like a delayed release.

Iterate without killing velocity

Treat error budgets as a conversation, not a hammer. When you regularly exceed targets, ratchet them tighter. When a major migration happens, temporarily loosen the budget but document it in the SLA addendum. That balance keeps engineers shipping while customers keep trusting your APIs.

What to do next

Error budgets aren’t theory. They’re the contract between velocity and reliability. Own them, or they’ll own you.

Morten Pradsgaard is the founder of exit1.dev — the free uptime monitor for people who actually ship. He writes no-bullshit guides on monitoring, reliability, and building software that doesn't crumble under pressure.