diff --git a/server/src/com/cloud/storage/snapshot/SnapshotManager.java b/server/src/com/cloud/storage/snapshot/SnapshotManager.java
index 87937898803..606109fe25b 100644
--- a/server/src/com/cloud/storage/snapshot/SnapshotManager.java
+++ b/server/src/com/cloud/storage/snapshot/SnapshotManager.java
@@ -42,7 +42,8 @@ public interface SnapshotManager {
             "Maximum recurring weekly snapshots to be retained for a volume. If the limit is reached, snapshots from the beginning of the week are deleted so that newer ones can be saved. This limit does not apply to manual snapshots. If set to 0, recurring weekly snapshots can not be scheduled.", false, ConfigKey.Scope.Global, null);
     static final ConfigKey<Integer> SnapshotMonthlyMax = new ConfigKey<Integer>(Integer.class, "snapshot.max.monthly", "Snapshots", "8",
             "Maximum recurring monthly snapshots to be retained for a volume. If the limit is reached, snapshots from the beginning of the month are deleted so that newer ones can be saved. This limit does not apply to manual snapshots. If set to 0, recurring monthly snapshots can not be scheduled.", false, ConfigKey.Scope.Global, null);
-
+    static final ConfigKey<Boolean> usageSnapshotSelection = new ConfigKey<Boolean>("Usage", Boolean.class, "usage.snapshot.virtualsize.select", "false",
+            "Set the value to true if snapshot usage need to consider virtual size, else physical size is considered ", false);
     void deletePoliciesForVolume(Long volumeId);
 
     /**
diff --git a/server/src/com/cloud/storage/snapshot/SnapshotManagerImpl.java b/server/src/com/cloud/storage/snapshot/SnapshotManagerImpl.java
index 2ffc8acc618..6ce024b583b 100755
--- a/server/src/com/cloud/storage/snapshot/SnapshotManagerImpl.java
+++ b/server/src/com/cloud/storage/snapshot/SnapshotManagerImpl.java
@@ -1328,5 +1328,5 @@ public class SnapshotManagerImpl extends MutualExclusiveIdsManagerBase implement
 
     @Override
     public ConfigKey<?>[] getConfigKeys() {
-        return new ConfigKey<?>[] { SnapshotHourlyMax, SnapshotDailyMax, SnapshotMonthlyMax, SnapshotWeeklyMax}; }
+        return new ConfigKey<?>[] { SnapshotHourlyMax, SnapshotDailyMax, SnapshotMonthlyMax, SnapshotWeeklyMax, usageSnapshotSelection}; }
 }
diff --git a/usage/src/com/cloud/usage/UsageManagerImpl.java b/usage/src/com/cloud/usage/UsageManagerImpl.java
index 886405637c0..840b02c5e40 100644
--- a/usage/src/com/cloud/usage/UsageManagerImpl.java
+++ b/usage/src/com/cloud/usage/UsageManagerImpl.java
@@ -169,6 +169,7 @@ public class UsageManagerImpl extends ManagerBase implements UsageManager, Runna
     private Future _scheduledFuture = null;
     private Future _heartbeat = null;
     private Future _sanity = null;
+    private boolean  usageSnapshotSelection = false;
 
     public UsageManagerImpl() {
     }
@@ -208,6 +209,7 @@ public class UsageManagerImpl extends ManagerBase implements UsageManager, Runna
         String sanityCheckInterval = configs.get("usage.sanity.check.interval");
         String quotaEnable = configs.get("quota.enable.service");
         _runQuota = Boolean.valueOf(quotaEnable == null ? "false" : quotaEnable );
+        usageSnapshotSelection  = Boolean.valueOf(configs.get("usage.snapshot.virtualsize.select"));
         if (sanityCheckInterval != null) {
             _sanityCheckInterval = Integer.parseInt(sanityCheckInterval);
         }
@@ -1535,7 +1537,11 @@ public class UsageManagerImpl extends ManagerBase implements UsageManager, Runna
 
         long snapId = event.getResourceId();
         if (EventTypes.EVENT_SNAPSHOT_CREATE.equals(event.getType())) {
-            snapSize = event.getSize();
+            if (usageSnapshotSelection){
+                snapSize =  event.getVirtualSize();
+            }else {
+                snapSize = event.getSize();
+            }
             zoneId = event.getZoneId();
         }