diff --git a/pkg/providers/instancetype/instancetype.go b/pkg/providers/instancetype/instancetype.go
index 7515b87..9fe1a8f 100644
--- a/pkg/providers/instancetype/instancetype.go
+++ b/pkg/providers/instancetype/instancetype.go
@@ -29,7 +29,6 @@ import (
 	"github.com/patrickmn/go-cache"
 	"github.com/samber/lo"
 	corev1 "k8s.io/api/core/v1"
-	"k8s.io/apimachinery/pkg/api/resource"
 	"k8s.io/apimachinery/pkg/util/sets"
 	"sigs.k8s.io/controller-runtime/pkg/client"
 	"sigs.k8s.io/controller-runtime/pkg/log"
@@ -179,11 +178,6 @@ func (p *DefaultProvider) List(ctx context.Context, kc *v1alpha1.KubeletConfigur
 		return nil, fmt.Errorf("failed to get cluster CNI: %w", err)
 	}
 
-	nodeResourceOverhead, err := p.nodeOverhead(ctx)
-	if err != nil {
-		return nil, fmt.Errorf("failed to get node resource overhead: %w", err)
-	}
-
 	result := lo.Map(p.instanceTypesInfo, func(i *ecsclient.DescribeInstanceTypesResponseBodyInstanceTypesInstanceType, _ int) *cloudprovider.InstanceType {
 		zoneData := lo.Map(allZones.UnsortedList(), func(zoneID string, _ int) ZoneData {
 			if !p.instanceTypesOfferings[lo.FromPtr(i.InstanceTypeId)].Has(zoneID) || !vSwitchsZones.Has(zoneID) {
@@ -203,7 +197,7 @@ func (p *DefaultProvider) List(ctx context.Context, kc *v1alpha1.KubeletConfigur
 		// so that Karpenter is able to cache the set of InstanceTypes based on values that alter the set of instance types
 		// !!! Important !!!
 		offers := p.createOfferings(ctx, *i.InstanceTypeId, zoneData)
-		return NewInstanceType(ctx, nodeResourceOverhead, i, kc, p.region, nodeClass.Spec.SystemDisk, offers, clusterCNI)
+		return NewInstanceType(ctx, i, kc, p.region, nodeClass.Spec.SystemDisk, offers, clusterCNI)
 	})
 
 	// Filter out nil values
@@ -213,37 +207,6 @@ func (p *DefaultProvider) List(ctx context.Context, kc *v1alpha1.KubeletConfigur
 	return result, nil
 }
 
-func (p *DefaultProvider) nodeOverhead(ctx context.Context) (corev1.ResourceList, error) {
-	var nodes corev1.NodeList
-	if err := p.kubeClient.List(ctx, &nodes); err != nil {
-		return corev1.ResourceList{}, err
-	}
-
-	// We do not sure how to calculate the overhead of the node, let's just use the maximum possible
-	// To avoid some loop node creation
-	maxCPUOverHead := int64(0)
-	maxMemoryOverHead := int64(0)
-	for _, node := range nodes.Items {
-		capacity := node.Status.Capacity
-		allocatable := node.Status.Allocatable
-
-		cpuOverHead := capacity.Cpu().MilliValue() - allocatable.Cpu().MilliValue()
-		memoryOverHead := capacity.Memory().Value() - allocatable.Memory().Value()
-
-		if cpuOverHead > maxCPUOverHead {
-			maxCPUOverHead = cpuOverHead
-		}
-		if memoryOverHead > maxMemoryOverHead {
-			maxMemoryOverHead = memoryOverHead
-		}
-	}
-
-	return corev1.ResourceList{
-		corev1.ResourceCPU:    *resource.NewMilliQuantity(maxCPUOverHead, resource.DecimalSI),
-		corev1.ResourceMemory: *resource.NewQuantity(maxMemoryOverHead, resource.DecimalSI),
-	}, nil
-}
-
 func (p *DefaultProvider) UpdateInstanceTypes(ctx context.Context) error {
 	// DO NOT REMOVE THIS LOCK ----------------------------------------------------------------------------
 	// We lock here so that multiple callers to getInstanceTypesOfferings do not result in cache misses and multiple
diff --git a/pkg/providers/instancetype/types.go b/pkg/providers/instancetype/types.go
index c8fbd29..f516a6d 100644
--- a/pkg/providers/instancetype/types.go
+++ b/pkg/providers/instancetype/types.go
@@ -57,7 +57,52 @@ type ZoneData struct {
 	Available bool
 }
 
-func NewInstanceType(ctx context.Context, overhead corev1.ResourceList,
+func calculateResourceOverhead(pods, cpuM, memoryMi int64) corev1.ResourceList {
+	// referring to: https://help.aliyun.com/zh/ack/ack-managed-and-ack-dedicated/user-guide/resource-reservation-policy#0f5ffe176df7q
+	// CPU overhead calculation
+	cpuOverHead := calculateCPUOverhead(cpuM)
+
+	// TODO: In a real environment, the formula does not produce accurate results,
+	// consistently yielding values that are 200MiB larger than expected.
+	// Memory overhead: min(11*pods + 255, memoryMi*0.25)
+	memoryOverHead := int64(math.Min(float64(11*pods+255), float64(memoryMi)*0.25)) + 200
+
+	return corev1.ResourceList{
+		corev1.ResourceCPU:    *resource.NewMilliQuantity(cpuOverHead, resource.DecimalSI),
+		corev1.ResourceMemory: *resources.Quantity(fmt.Sprintf("%dMi", memoryOverHead)),
+	}
+}
+
+// thresholds defines CPU overhead thresholds and their corresponding percentages
+var thresholds = [...]struct {
+	cores    int64
+	overhead float64
+}{
+	{1000, 0.06},
+	{3000, 0.01},
+	{3000, 0.005},
+	{4000, 0.005},
+}
+
+func calculateCPUOverhead(cpuM int64) int64 {
+	var cpuOverHead int64
+
+	// Calculate overhead for each threshold
+	for _, t := range thresholds {
+		if cpuM >= t.cores {
+			cpuOverHead += int64(1000 * t.overhead)
+		}
+	}
+
+	// Additional overhead for CPU > 4 cores (0.25%)
+	if cpuM > 4000 {
+		cpuOverHead += int64(float64(cpuM-4000) * 0.0025)
+	}
+
+	return cpuOverHead
+}
+
+func NewInstanceType(ctx context.Context,
 	info *ecsclient.DescribeInstanceTypesResponseBodyInstanceTypesInstanceType,
 	kc *v1alpha1.KubeletConfiguration, region string, systemDisk *v1alpha1.SystemDisk,
 	offerings cloudprovider.Offerings, clusterCNI string) *cloudprovider.InstanceType {
@@ -71,12 +116,15 @@ func NewInstanceType(ctx context.Context, overhead corev1.ResourceList,
 		Offerings:    offerings,
 		Capacity:     computeCapacity(ctx, info, kc.MaxPods, kc.PodsPerCore, systemDisk, clusterCNI),
 		Overhead: &cloudprovider.InstanceTypeOverhead{
-			// Follow overhead will be merged, so we can set only one overhead totally
-			KubeReserved:      overhead,
+			KubeReserved:      corev1.ResourceList{},
 			SystemReserved:    corev1.ResourceList{},
 			EvictionThreshold: corev1.ResourceList{},
 		},
 	}
+
+	// Follow KubeReserved/SystemReserved/EvictionThreshold will be merged, so we can set only one overhead totally
+	it.Overhead.KubeReserved = calculateResourceOverhead(it.Capacity.Pods().Value(),
+		it.Capacity.Cpu().MilliValue(), extractMemory(info).Value()/MiBByteRatio)
 	if it.Requirements.Compatible(scheduling.NewRequirements(scheduling.NewRequirement(corev1.LabelOSStable, corev1.NodeSelectorOpIn, string(corev1.Windows)))) == nil {
 		it.Capacity[v1alpha1.ResourcePrivateIPv4Address] = *privateIPv4Address(info)
 	}
@@ -206,9 +254,13 @@ func cpu(info *ecsclient.DescribeInstanceTypesResponseBodyInstanceTypesInstanceT
 	return resources.Quantity(fmt.Sprint(*info.CpuCoreCount))
 }
 
-func memory(ctx context.Context, info *ecsclient.DescribeInstanceTypesResponseBodyInstanceTypesInstanceType) *resource.Quantity {
+func extractMemory(info *ecsclient.DescribeInstanceTypesResponseBodyInstanceTypesInstanceType) *resource.Quantity {
 	sizeInGib := tea.Float32Value(info.MemorySize)
-	mem := resources.Quantity(fmt.Sprintf("%fGi", sizeInGib))
+	return resources.Quantity(fmt.Sprintf("%fGi", sizeInGib))
+}
+
+func memory(ctx context.Context, info *ecsclient.DescribeInstanceTypesResponseBodyInstanceTypesInstanceType) *resource.Quantity {
+	mem := extractMemory(info)
 	if mem.IsZero() {
 		return mem
 	}