SummaryServerless computing has emerged as a powerful deployment model based on the Function‐as‐a‐Service (FaaS) paradigm, where applications are orchestrated through a set of independent functions. The function orchestration within an application can be represented through a serverless workflow, which defines the overall execution plan of the application. To ensure the quality of service for serverless computing platforms, it is essential to develop performance and cost models that can predict the service quality that can be obtained from deploying and executing applications in the cloud platform. While several analytical models have been developed for various cloud deployment frameworks in recent years, there has been a lack of performance and cost analysis models for serverless computing platforms. The existing performance and cost monitoring tools available in serverless frameworks face several challenges, such as complexity, lack of transparency, and incomplete monitoring data. In this paper, we fill the gap by proposing an efficient workflow‐based analytical model that can estimate the end‐to‐end response time and cost of the serverless execution plan. The proposed model can handle complex structures like loop, cycles, self‐loop, and parallel substructures that exist in serverless workflows. Additionally, we propose a heuristic optimization algorithm to identify the optimal resource configuration to achieve the optimal response time under a given budget constraint. We evaluated the effectiveness of the proposed model by considering seven serverless applications in both AWS Lambda and Microsoft Azure platforms. We compared the accuracy of the proposed model with the real values of response time and cost obtained in AWS Lambda and Microsoft Azure serverless platforms. The proposed performance and cost model in the AWS Lambda platform has been observed to have an average accuracy of 99.2% and 98.7% respectively. In the Microsoft Azure platform, the average accuracy of the performance and cost model has been observed to be 98.6% and 98.2% respectively.