diff --git a/core/src/cost_update_service.rs b/core/src/cost_update_service.rs
index 900cce52cb..a7f1571aca 100644
--- a/core/src/cost_update_service.rs
+++ b/core/src/cost_update_service.rs
@@ -270,9 +270,8 @@ mod tests {
             let accumulated_us: u64 = 2000;
             let accumulated_units: u64 = 200;
             let count: u32 = 10;
-            // to expect new cost = (mean + 2 * std) of [10, 20] = 25, where
-            //   mean = (10+20)/2 = 15; std=5
-            expected_cost = 25;
+            // to expect new cost = (mean + 2 * std)
+            expected_cost = 24;
 
             execute_timings.details.per_program_timings.insert(
                 program_key_1,
@@ -367,7 +366,7 @@ mod tests {
             //  100,  // original program_cost
             //  1000, // cost_per_error
             // ]
-            let expected_cost = 1450u64;
+            let expected_cost = 1342u64;
             assert_eq!(1, updated_program_costs.len());
             assert_eq!(
                 Some(&expected_cost),
@@ -401,7 +400,7 @@ mod tests {
             //  1000, // cost_per_error from above test
             //  1450, // the smaller_cost_per_error will be coalesced to prev cost
             // ]
-            let expected_cost = 1973u64;
+            let expected_cost = 1915u64;
             assert_eq!(1, updated_program_costs.len());
             assert_eq!(
                 Some(&expected_cost),
diff --git a/runtime/src/cost_model.rs b/runtime/src/cost_model.rs
index b500480294..534dae0470 100644
--- a/runtime/src/cost_model.rs
+++ b/runtime/src/cost_model.rs
@@ -498,8 +498,8 @@ mod tests {
         let key1 = Pubkey::new_unique();
         let cost1 = 100;
         let cost2 = 200;
-        // updated_cost = (mean + 2*std) = 150 + 2 * 50 = 250
-        let updated_cost = 250;
+        // updated_cost = (mean + 2*std)
+        let updated_cost = 238;
 
         let mut cost_model = CostModel::default();
 
diff --git a/runtime/src/execute_cost_table.rs b/runtime/src/execute_cost_table.rs
index 3b01f0fedb..c779164609 100644
--- a/runtime/src/execute_cost_table.rs
+++ b/runtime/src/execute_cost_table.rs
@@ -15,11 +15,15 @@ const OCCURRENCES_WEIGHT: i64 = 100;
 
 const DEFAULT_CAPACITY: usize = 1024;
 
+// The coefficient represents the degree of weighting decrease in EMA,
+// a constant smoothing factor between 0 and 1. A higher alpha
+// discounts older observations faster.
+const COEFFICIENT: f64 = 0.4;
+
 #[derive(Debug, Default)]
 struct AggregatedVarianceStats {
-    count: u64,
-    mean: f64,
-    squared_mean_distance: f64,
+    ema: f64,
+    ema_var: f64,
 }
 
 #[derive(Debug)]
@@ -57,18 +61,11 @@ impl ExecuteCostTable {
 
     // returns None if program doesn't exist in table. In this case,
     // it is advised to call `get_default()` for default program costdefault/
-    // using Welford's Algorithm to calculate mean and std:
-    // https://en.wikipedia.org/wiki/Algorithms_for_calculating_variance#Welford's_online_algorithm
     // Program cost is estimated as 2 standard deviations above mean, eg
     // cost = (mean + 2 * std)
     pub fn get_cost(&self, key: &Pubkey) -> Option<u64> {
         let aggregated = self.table.get(key)?;
-        if aggregated.count < 1 {
-            None
-        } else {
-            let variance = aggregated.squared_mean_distance / aggregated.count as f64;
-            Some((aggregated.mean + 2.0 * variance.sqrt()).ceil() as u64)
-        }
+        Some((aggregated.ema + 2.0 * aggregated.ema_var.sqrt()).ceil() as u64)
     }
 
     pub fn upsert(&mut self, key: &Pubkey, value: u64) {
@@ -78,16 +75,24 @@ impl ExecuteCostTable {
             self.prune_to(&((current_size as f64 * PRUNE_RATIO) as usize));
         }
 
-        // Welford's algorithm
-        let aggregated = self
-            .table
-            .entry(*key)
-            .or_insert_with(AggregatedVarianceStats::default);
-        aggregated.count += 1;
-        let delta = value as f64 - aggregated.mean;
-        aggregated.mean += delta / aggregated.count as f64;
-        let delta_2 = value as f64 - aggregated.mean;
-        aggregated.squared_mean_distance += delta * delta_2;
+        // exponential moving average algorithm
+        // https://en.wikipedia.org/wiki/Moving_average#Exponentially_weighted_moving_variance_and_standard_deviation
+        if self.table.contains_key(key) {
+            let aggregated = self.table.get_mut(key).unwrap();
+            let theta = value as f64 - aggregated.ema;
+            aggregated.ema += theta * COEFFICIENT;
+            aggregated.ema_var =
+                (1.0 - COEFFICIENT) * (aggregated.ema_var + COEFFICIENT * theta * theta)
+        } else {
+            // the starting values
+            self.table.insert(
+                *key,
+                AggregatedVarianceStats {
+                    ema: value as f64,
+                    ema_var: 0.0,
+                },
+            );
+        }
 
         let (count, timestamp) = self
             .occurrences
@@ -231,7 +236,7 @@ mod tests {
         testee.upsert(&key1, cost2);
         assert_eq!(2, testee.get_count());
         // expected key1 cost = (mean + 2*std) = (105 + 2*5) = 115
-        let expected_cost = 115;
+        let expected_cost = 114;
         assert_eq!(expected_cost, testee.get_cost(&key1).unwrap());
         assert_eq!(cost2, testee.get_cost(&key2).unwrap());
     }
@@ -276,7 +281,7 @@ mod tests {
         assert_eq!(2, testee.get_count());
         assert!(testee.get_cost(&key1).is_none());
         // expected key2 cost = (mean + 2*std) = (105 + 2*5) = 115
-        let expected_cost_2 = 115;
+        let expected_cost_2 = 116;
         assert_eq!(expected_cost_2, testee.get_cost(&key2).unwrap());
         assert!(testee.get_cost(&key3).is_none());
         assert_eq!(cost4, testee.get_cost(&key4).unwrap());