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VPS → Cost
How much does a VPS cost?
Web hosting comes in three main forms—shared hosting, virtual private server (VPS) hosting, and dedicated server hosting.
Among these three, shared hosting is the most cost-effective option, as it accommodates multiple websites within a single server, optimizing resource allocation. This makes it suitable for small businesses and personal brands that are just starting out.
However, shared hosting does not meet the performance, control, and security expectations of traffic-heavy websites.
On the other hand, dedicated hosting offers high performance, robust security, and exclusive access to an entire physical server. But this premium service is typically more expensive than a shared hosting plan, so it might not be feasible for everyone.
VPS hosting nestles between these two extremes. It’s the perfect middle ground for businesses that want an upgrade from shared hosting without the high costs of a dedicated server.
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But how much does a VPS cost, and how can you choose the best pricing plan?
Here’s what you need to know.
Understanding VPS hosting
VPS hosting simulates having your own dedicated server, when in reality you’re sharing server resources with other users.
This type of hosting uses virtualization software such as VMware, Oracle VM VirtualBox, and PowerVM to partition one server into numerous virtual machines (VMs).
Each VM operates almost as if it were a standalone server, with its own operating system, dedicated resources (e.g. CPU, RAM, storage, and bandwidth), and IP address.
The primary benefits of VPS hosting include:
- Consistent performance — The allocation of dedicated resources means more the activities of other users on the parent server will have minimal impact on your website. You also get more resources at your disposal, which results in faster loading times and higher reliability than shared hosting.
- Greater scalability — Most VPS hosting service providers allow you to adjust your server resources to meet dynamic business needs. Whether you need more CPU power, extra RAM, or additional storage, making the necessary changes is quick and straightforward with a VPS.
- Enhanced security — VPS hosting offers a significant advantage over shared hosting when it comes to security. Each virtual server operates in isolation, with its own resources and environment. This shields your website from any vulnerabilities or attacks affecting other websites you’re sharing the parent server with.
- Greater control — VPS hosting provides root access to your virtual server, which allows you to customize server settings to meet your specific needs. For instance, you have the freedom to install and configure your preferred operating system, software, and applications.
How much does a VPS cost?
The average cost of a VPS ranges between $10 and $100 per month. However, some providers offer monthly web hosting plans as low as $4.
Overall, the exact amount you’ll pay depends on the service provider you choose, as each web host has different pricing structures based on server specifications, resource allocation, and contract duration.
Some VPS providers might charge an initial set-up fee in addition to the monthly fee. This one-time charge covers the cost of getting your virtual server up and running.
Depending on your chosen provider, there may be some hidden costs associated with VPS hosting. These include overage charges for exceeding allocated resources and prices of extra services or features not included in the base plan.
Review your provider’s terms of service and ask about any additional costs beyond the advertised monthly rate to avoid unpleasant surprises later on.
Factors influencing the cost of VPS hosting
Here’s a look at some of the factors that affect how much a VPS costs.
Resource allocation
The allocated resources on your VPS directly affect the amount you pay for web hosting. These resources significantly impact your website’s performance, including how quickly your pages and design elements load.
Naturally, the higher the allocation, the better the performance, and thus the higher the cost.
Managed vs unmanaged VPS hosting
Many VPS hosting providers allow you to choose between managed and unmanaged VPS hosting.
In a managed VPS plan, the host handles server management tasks such as software updates, server configuration, and security installations on your behalf. A managed VPS hosting plan is ideal if you have minimal technical expertise or prefer to focus on core business tasks. However, due to its higher cost, it may not be the best plan if you’re on a budget.
Conversely, unmanaged VPS hosting costs less but requires you to handle all administrative aspects of your server yourself. It’s better suited to website owners who have the technical know-how and time to manage their servers.
Scalability options
How much a VPS costs can also vary based on the scalability options offered. For example, plans with advanced scalability features like auto-scaling will likely cost more than plans with a preset number of resources.
With auto-scaling, your host continuously monitors the server load and automatically adds more resources to ensure the server handles load surges without a drop in performance. This setup requires sophisticated infrastructure, thus the higher cost.
Some providers also allow you to customize your plan — they let you choose the amount of server resources that meets your hosting requirements. Such providers will likely charge more for their web hosting services than those that exclusively offer plans with a default number of resources.
Contract length
The length of your contract is yet another factor that can affect how much a VPS costs. Many VPS hosting companies offer significant discounts if you commit for an extended period, e.g., six months or one year, instead of monthly billing. You can save a few dollars annually by opting for a longer contract duration.
That said, make sure the provider offers a satisfactory money-back guarantee before you commit. This ensures you can get a refund if the service doesn’t meet your expectations after signing up.
Liquid Web’s Cloud VPS hosting plans come with a condition-free 30-day money-back guarantee, prioritizing your satisfaction and peace of mind.
Special offers
Discounts and special offers can also affect how much a VPS costs. Some web hosts offer introductory discounts to new customers. This can either mean a percentage off the monthly fee for a limited time or a reduced rate for the first year.
Other hosts might offer special pricing during certain times of the year, including Black Friday, Cyber Monday, or even the company’s anniversary. Keeping an eye on these special dates can help you secure a great deal and lower web hosting costs.
Operating system
Your choice of an operating system can also affect how much a VPS costs. Open-source Linux distributions such as Ubuntu, CentOS, and Debian are available without any licensing fees, translating to lower VPS hosting.
On the other hand, Windows, which is necessary for hosting applications that rely on the Microsoft system, requires a license to operate, adding to the cost of a Windows VPS hosting plan.
Add-ons
Some web hosts offer additional features and services that affect how much a VPS costs.
Typical add-ons include:
- Security enhancements (like SSL certificates, DDoS protection, and malware scanning).
- Control panels (e.g., cPanel and Plesk).
- Automated backups.
- Domain privacy.
- Priority support.
Here’s some good news: If you host your website with Liquid Web, we’ll automatically include some of these high-value features in your plan free of charge!
When to shift to VPS hosting
As we’ve seen, VPS hosting is an upgrade from shared hosting in terms of control, performance, security, and scalability. But when is the right time to make this shift?
Here are key indicators that it’s time to consider upgrading to VPS hosting.
Your website’s traffic volume is surging
As your website becomes more popular and experiences a surge in traffic, shared hosting might be unable to keep up with its increased demands. If you want to maintain optimal website performance amid traffic fluctuations, there’s no better time to upgrade to VPS hosting.
With its dedicated server resources, VPS hosting can handle these fluctuations with ease, keeping your website running smoothly even during peak periods.
Your website is slowing down or experiencing frequent downtimes
If your site is loading slowly or experiencing frequent downtimes, it could be a sign that your current hosting package isn’t providing sufficient resources to support your website’s needs.
Slow page load speed can frustrate website visitors and lower your search engine rankings, hurting your overall brand perception.
Roughly 53 percent of visitors will abandon a website that loads in more than three seconds. Additionally, conversion rates decrease by an average of 0.3 percent for every extra second your website takes to load.
Leveraging dedicated server resources, a VPS web host provides a reliable hosting environment, ensuring your website is fast and maintains optimal uptime.
You need to install custom software
As your business evolves, you may need to install specific software to add new features or services to your website. Shared hosting limits the types of software you can install.
There are no such restrictions with VPS hosting. You get full root access to your server, which allows you to install any software or application your business needs, including your preferred OS.
You have security concerns
Website security is a primary concern for all businesses. This is especially true for ecommerce websites and other companies that handle sensitive customer data or process payments.
In a shared hosting setup, a security breach or vulnerability on one website can affect other websites hosted on the same server.
According to a recent IBM report, the cost of a data breach in 2023 averaged $4.45 million, so investing in a secure hosting solution can potentially save you millions of dollars.
VPS hosting provides greater security, as each virtual server operates in an isolated environment with its resources. If another website on the main server suffers a security breach, there’s little risk of your website getting affected. What’s more, reputable VPS hosting providers like Liquid Web offer a comprehensive suite of security features, protecting your website against external threats. These include integrated firewalls, DDoS protection, and free SSL certificates.
How to choose the best VPS hosting plan
There are many VPS hosting options out there, but not all are created equal. Let’s explore how to choose the best plan for your needs.
1. Analyze your hosting requirements
The first step in choosing a suitable VPS hosting plan is to evaluate your website’s specific requirements, including performance demands and resource needs.
Consider factors such as:
- Traffic volume — What is the expected number of visitors to your website? High-traffic websites require more server resources to maintain optimal performance and ensure a seamless browsing experience.
- Content type — What type of content will you be posting on your site? High-resolution images, videos, or interactive features demand more resources than text-based content.
- Special software or applications — Do you need to install special software or apps on your website? These include content management systems like WordPress; ecommerce software like WooCommerce; customer relationship management (CRM) software like HubSpot; database systems like MySQL; and email marketing tools like MailChimp.
Considering these factors will guide you in choosing a VPS hosting plan that offers the server resources, features, and support you need.
2. Determine your budget
Determine the maximum amount you’re willing to spend on web hosting monthly and annually. Setting a clear, realistic budget helps you narrow down your options and focus your search on VPS plans within your financial reach.
3. Research VPS hosting providers
Now that you know your needs and budget, create a list of VPS hosting providers that fit your criteria. Compare them side by side, analyzing the features that each offers.
Start by researching their resource allocations and then other features like performance and uptime guarantees, scalability options, customer support, and security. If a provider offers managed VPS hosting, confirm the services it includes.
Next, narrow down your list to two or three providers and further investigate. Read customer reviews for each provider and the VPS solutions they offer. Are most of the reviews positive? If not, what is the main complaint?
If possible, contact their customer support team directly to gauge their availability and responsiveness.
Additionally, check the provider’s status page on its website to see its uptime history. You can also use a monitoring tool like CodeinWP to track the provider’s performance.
4. Compare pricing plans
The next step is to compare the provider’s pricing plans to identify the option that best meets your hosting requirements and budget. While it’s tempting to go for the cheapest option on your list, that might always be the best move.
Investing in a slightly more expensive plan with better features or performance can save you money in the form of reduced downtime, improved user experience, and maximum security.
5. Make your decision and sign up
After thoroughly evaluating your options, it’s time to make a decision. Before you financially commit to a hosting plan, read through the provider’s terms of service. Pay attention to the policies regarding resource use, renewal, cancellation, and refunds.
If you’re satisfied with the terms and are confident in the provider’s ability to meet your needs, go ahead and sign up. This step typically involves creating an account, selecting your chosen VPS hosting plan, and making a payment.
The cheapest VPS providers in 2025
| VPS provider | Price range | Trustpilot rating | Highlights |
|---|---|---|---|
| Liquid Web | $5 – $55 per month when billed yearly | 4.5/5 stars | 30-day money-back guarantee 100% uptime guarantee Live chat initial response in less than one minute |
| Namecheap | $6.88 – $24.88 per month when billed yearly | 4.3/5 stars | 24/7 support 99% uptime |
| IONOS | $2 – $90 per month | 4.5/5 stars | 99.9% uptime Unlimited traffic up to 1 Gbit/s |
| GoDaddy | $8.99 – $44.99 per month for the first three years | 4.7/5 stars | Seven days of automated snapshot backups Global data centers |
| Hostwinds | $4.99 – $431.24 per month during the first billing cycle | 4.0/5 stars | Large selection of plans Free website transfer |
| DigitalOcean | $4 – $2,096 per month | 4.4/5 stars | Automatic scaling on select plans Free cloud firewall |
| Hostinger | $4.99 – $19.99 per month for the first 24 months | 4.6/5 stars | AI assistant 30-day money-back guarantee |
For all the details, see The cheapest VPS providers of 2024 →
Get started with VPS hosting
VPS hosting is the perfect middle ground between shared and dedicated server hosting. It’s ideal for high-traffic websites that require more resources, enhanced performance, improved scalability, and greater control than shared hosting without incurring the high costs of a dedicated server.
How much a VPS costs depends on several factors, including the amount of resources allocated to your virtual server, whether you’re on a managed or unmanaged plan, the duration of your contract, the scalability options offered, and any additional features.
That’s why Liquid Web is your best choice for VPS hosting. We offer best-in-class solutions designed to meet the diverse web hosting needs of modern businesses and enterprises like yours. Get high performance, maximum security, 24/7 expert support, and more.
Click below to explore VPS hosting options or start a chat with one of our experts right now to learn more.
Additional resources
VPS: A beginner’s guide →
A complete beginner’s guide to virtual private servers
Protect your VPS from DDoS attack →
9 steps to harden your virtual server
Expert tips for managing your VPS →
A complete guide to help you run your VPS with confidence
Maddy Osman is a WordPress expert, WordCamp US speaker, bestselling author, and the Founder and SEO Content Strategist at The Blogsmith. She has a B.A. in Marketing from the University of Iowa and is a WordCamp Denver organizer while also operating The Blogsmith, an SEO content agency for B2B tech companies that works with clients like HubSpot, Automattic, and Sprout Social. Learn more about The Blogsmith’s process and get in touch to talk content strategy: www.TheBlogsmith.com