DigitalOcean vs Vultr vs Hetzner: Real Homelab Cost Comparison

I'm going to be straightforwardly biased here in one way and honest in every other: I run this whole stack on Vultr, but Hetzner is objectively the cheapest option for raw specs. Here's the real comparison, trade-offs included.

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I should say this upfront: I run everything on this site on Vultr, and that's the link I have to offer if you sign up through this post. That doesn't mean it's the cheapest option — it isn't — so here's the honest comparison of the three providers people ask me about most, at the tier most of the setups on this site actually use.

What the same money actually buys

Provider~$12/month tierLocations
DigitalOcean2GB RAM / 1 vCPU / 50GB SSD ($12/mo Basic Droplet)~15 regions
Vultr2GB RAM / High Frequency tier ($12/mo)~32 locations
Hetzner (CX22)4GB RAM / 2 vCPU / 40GB SSD ($4.59/mo)6 locations (Germany: Nuremberg & Falkenstein, Finland: Helsinki, US: Ashburn & Hillsboro, Singapore)

Read that table again: Hetzner's $4.59/month tier has double the RAM and double the vCPUs of DigitalOcean's $12/month 2GB/1vCPU tier, for well under half the price — and it still beats Vultr's $12/month 2GB tier on RAM alone, for a third of the cost. On pure specs-per-dollar, it's not close, and I'm not going to pretend otherwise just because I don't have a Hetzner link to offer you.

Why I'm still on Vultr anyway

A few real reasons, not marketing ones:

  • Signup friction. Hetzner runs identity verification on new accounts — government ID or video verification, sometimes a manual review delay — before your first server goes live. Vultr and DigitalOcean both let you spin up a server within minutes of signing up with a card. If you want to be running something tonight, that difference matters.
  • Location coverage. Hetzner's 6 locations are excellent if your audience is in Europe or the US East/West coast (Ashburn and Hillsboro cover those now). Vultr's ~32 and DigitalOcean's ~15 locations give you more options if you need a specific region — closer to a specific audience, or specific data-residency needs.
  • I was already set up before the CX line's current pricing existed. Migrating a working stack to save a few dollars a month, for zero difference my readers would ever notice, isn't worth the weekend. If I were starting from zero today, this section would probably look different.

My honest recommendation

If you're price-sensitive, comfortable with a short identity-verification step, and don't need a location outside Hetzner's six, Hetzner is the better raw deal — I'd say so even though I don't have a referral link for them. If you want to be running a server five minutes after you decide to, or you need a specific region they don't have, Vultr and DigitalOcean are functionally similar at this tier, and the deciding factor is usually which one has a data center where you actually need it.

Every setup on this site — n8n, Grafana + Loki, Vikunja, Ghost, BookStack, ntfy — runs comfortably in the $6–$12/month range on any of these three. The provider matters less than actually starting.

I run mine on Vultr.

Disclosure: this post contains an affiliate link to Vultr. If you sign up through it, I may earn a commission at no extra cost to you. I don't have referral links for DigitalOcean or Hetzner, which is part of why I could write the Hetzner section above as bluntly as I did.