# Creating a custom AMI with Terraform
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When using Amazon ParallelCluster, you only pay for the Amazon resources that are created when you create or update Amazon ParallelCluster images and clusters. For more information, see [Amazon services used by Amazon ParallelCluster](aws-services-v3.md).

**Prerequisites**
+  Terraform v1.5.7\+ is installed. 
+ [Amazon ParallelCluster API](api-reference-v3.md) v3.8.0\+ is deployed in your account. See [Creating a cluster with Terraform](tutorial-create-cluster-terraform.md). 
+ IAM role with the permissions to invoke the ParallelCluster API. See [Required permissions](tutorial-create-ami-terraform-permissions.md).