Last updated: October 2026.
If you last shopped for a budget VPS in 2024, your mental price list is wrong. Hetzner raised cloud prices twice in 2026. OVHcloud raised prices in March, then launched a new VPS range in June. Contabo nudged its entry tiers up too.
This guide compares five providers that still belong on a budget shortlist for small projects: Hetzner, Contabo, OVHcloud, Hostinger, and DigitalOcean. Prices below are approximate October 2026 figures; check the official pricing page before you buy.
How much server does a small project need?
Most people buy too much server:
- A static site or a small blog: 1 vCPU and 1 to 2 GB of RAM.
- WordPress with plugins: 2 GB of RAM is the floor. With 1 GB you will fight out-of-memory kills.
- A Docker stack (web app, database, reverse proxy): 2 vCPU and 4 GB of RAM.
- A personal VPN or monitoring box: 1 vCPU and 1 to 2 GB of RAM.
Two rules of thumb. First, RAM matters more than vCPU count at this tier. Running out of memory crashes a server, while a slow CPU just makes it wait. Second, prefer NVMe storage if you run a database; disk speed shows up in every page load. Start with the smallest plan that clears your RAM target.
The five providers
1. Hetzner Cloud
Hetzner remains Europe’s value reference, but the 2026 increases changed what “cheap” means. The cost-optimized CX line (shared vCPU) is now the budget pick, from around 5.49 EUR per month for the CX23 tier, with the ARM-based CAX11 from about 5.99 EUR.
You get hourly billing capped at the monthly price, 20 TB of outbound traffic per month on EU servers, and the cleanest panel and API of any budget provider. Caveats: US regions include only about 1 TB of traffic, and outbound mail ports stay blocked for roughly the first 30 days on new accounts.
2. Contabo
Contabo sells raw specs. The entry Cloud VPS 4 offers 4 vCPU, 8 GB of RAM, 100 GB of SSD, and a 200 Mbit/s port for around 5.28 USD per month on a 24-month term, or about 6.60 USD billed month to month. Traffic is unlimited under a fair-use policy, which nobody else at this price matches.
The catch is that the headline price needs a 24-month commitment paid in full up front, over 100 USD on day one, and month-to-month costs roughly 25 percent more. The panel feels dated, there is no hourly billing, and support is ticket-only with slow responses.
3. OVHcloud
OVHcloud reshuffled its lineup in June 2026 with the VPS 2027 range. The new VPS-1 lists around 3.81 EUR per month on a 12-month commitment (2 vCores, 4 GB of RAM, 40 GB of storage), one of the cheapest real entries on this list. From the older ranges, the Value tier runs about 6 USD per month (1 vCore, 2 GB RAM, 40 GB NVMe) and Essential about 11.50 USD (2 vCores, 4 GB RAM, 80 GB NVMe).
Bandwidth is unmetered on most VPS plans under a fair-use policy, and anti-DDoS protection is included on every plan at no extra cost. The trade-offs are an operator-grade panel and in-place upgrades that only work in the US region. Elsewhere, moving up a tier means ordering a new server and migrating by hand.
4. Hostinger
Hostinger is the easiest first server on this list. The KVM 1 plan (1 vCPU, 4 GB of RAM, 50 GB of NVMe, 4 TB of bandwidth) costs around 6.49 USD per month on a 24-month promotional term, on AMD EPYC hardware with weekly backups, 24/7 live chat, and a 30-day money-back guarantee.
Read the renewal column first: KVM 1 renews at about 11.99 USD per month, and KVM 2 at about 14.99. That is the biggest promo-to-renewal jump on this list, so judge Hostinger on the renewal price. Bandwidth is capped at 4 TB on KVM 1.
5. DigitalOcean
DigitalOcean is the most expensive way to buy a gigabyte of RAM here, and it still earns its place. Basic droplets start at 4 USD per month (1 vCPU, 512 MB RAM), with realistic tiers at 6 USD (1 GB RAM), 12 USD (2 GB), and 24 USD (2 vCPU, 4 GB). Since January 2026, droplets bill per second with a monthly cap.
You pay for the best technical documentation of any provider here, a clean API and panel, one-click app images, and managed databases, object storage, and Kubernetes to grow into. If you will never touch the API or managed services, you are paying for tooling you will not use.
Side by side
| Provider | Entry plan (approx., Oct 2026) | vCPU / RAM / Storage | Traffic | Standout | Watch out |
|---|---|---|---|---|---|
| Hetzner | ~5.49 EUR/mo (CX23) | 2 shared vCPU / cost-optimized line | 20 TB (EU) | Best panel and API; hourly billing | 2026 price hikes; mail ports blocked ~30 days |
| Contabo | ~5.28 USD/mo (24-mo term) | 4 vCPU / 8 GB / 100 GB SSD | Unlimited (fair use) | Most RAM per dollar | Term prepaid up front; ticket-only support |
| OVHcloud | ~3.81 EUR/mo (VPS-1, 12-mo) | 2 vCores / 4 GB / 40 GB | Unmetered (fair use) | DDoS protection included; cheap entry | No in-place resize outside US region |
| Hostinger | ~6.49 USD/mo promo (KVM 1) | 1 vCPU / 4 GB / 50 GB NVMe | 4 TB | Easiest for beginners; live chat | Renews ~11.99 USD; bandwidth capped |
| DigitalOcean | 6 USD/mo (Basic 1 GB) | 1 shared vCPU / 1 GB / 25 GB SSD | 1 TB | Best docs and ecosystem | Highest price per GB of RAM |
Five checks before you buy
1. Compare renewal prices, not promo prices. Hostinger’s renewal is nearly double the promo, and Contabo’s headline price needs a two-year term.
2. Look at the billing term. Contabo’s cheapest rate is prepaid for 24 months. Hetzner and DigitalOcean bill hourly or monthly with no commitment.
3. Add VAT and currency. Hetzner, Contabo, and OVHcloud quote in euros and add VAT based on your country, so the invoice can land above the listed figure.
4. Check the traffic policy. Contabo and OVHcloud are unmetered under fair use. Hetzner gives 20 TB in the EU and about 1 TB in the US. DigitalOcean and Hostinger set fixed allowances. For media or downloads, this matters more than CPU count.
5. Plan for mail and backups. Budget providers block outbound mail ports on new accounts; Hetzner holds the block for roughly the first month. Use a mail relay. Turn on backups from day one: at DigitalOcean they add 20 to 30 percent to the droplet price, and at Hetzner snapshots bill per gigabyte per month.
Which one I would pick
My opinion; the right answer depends on what your project punishes:
- Tightest budget, European audience: Hetzner’s CX line or OVHcloud’s VPS-1, both a real server for under 6 EUR a month.
- Most specs for the money: Contabo’s Cloud VPS 4. Eight gigabytes of RAM at this price is unmatched, if you can live with the long term and slower support.
- First server, want hand-holding: Hostinger KVM 1 or KVM 2, judged on the renewal price.
- Best docs and an upgrade path: DigitalOcean. The premium buys tutorials, a clean API, and managed services to grow into.
FAQ
How much does a budget VPS cost in 2026?
Entry plans run roughly 4 to 7 USD or EUR per month; a server that comfortably runs WordPress or a small Docker stack costs about 6 to 12 per month. Confirm the live figure on the official pricing page before ordering.
Is 1 GB of RAM enough for a small VPS?
For a static site, a small blog, or a VPN, yes. For WordPress with plugins, treat 2 GB as the floor. For a Docker stack with a database, start at 4 GB.
Is Hetzner still the cheapest in 2026?
At the very bottom of the range, yes: the CX line starts around 5.49 EUR per month. But the April and June 2026 increases shrank the gap to rivals. Compare the tier you need, not the brand.
Can I send email from a budget VPS?
Not on day one. Most providers block outbound mail ports on new accounts, and Hetzner keeps the block for roughly the first 30 days. Use a dedicated mail relay service or port 587 instead.
Should I pick a managed VPS instead?
Uncomfortable with SSH, firewalls, and updates? A managed host or a free control panel saves real pain. These five providers are all unmanaged, and the low price assumes you are the sysadmin.
The bottom line
The 2026 lesson is simple: check the pricing page during checkout instead of trusting last year’s advice. Hetzner leads on tooling, Contabo on raw specs per dollar, OVHcloud on entry price and included DDoS protection, Hostinger on beginner experience, and DigitalOcean on documentation and ecosystem. Pick the cheapest plan that clears your RAM target, turn on backups on day one, and resize only when your monitoring tells you to.