Cloud computing has revolutionized the working models of IT industry and increasing the demand of cloud resources which further leads to increase in energy consumption of data centers. Virtual machines (VMs) are consolidated dynamically to reduce the number of host machines inside data centers by satisfying the customer's requirements and quality of services (QoS). Moreover, for using the services of cloud environment every cloud user has a service level agreement (SLA) that deals with energy and performance trade-offs. As, the excess of consolidation and migration may degrade the performance of system, therefore, this paper focuses the overall performance of the system instead of energy consumption during the consolidation process to maintain a trust level between cloud's users and providers. In addition, the paper proposed three different heuristics for virtual machine (VM) placement based on current and previous usage of resources. The proposed heuristics ensure a high level of service level agreements (SLA) and better performance of ESM metric in comparison to previous research.