Running Coolify on a VPS: What It Really Costs (Spoiler: Not Much)

Ever look at your Vercel/Heroku bill and think, “Wait… I’m paying <em>how much</em> to deploy a side project?” Yeah. Same. That sticker shock is usually what sends people hunting for a self-hosted alternative—and Coolify is one of the cleanest “just works” options I’ve used.

So let’s answer the actual question without hand-wavy nonsense: what’s the typical cost to run Coolify on your own VPS? And what surprise costs might sneak up on you if you’re not paying attention?

The pain: PaaS pricing feels like a taxi meter

Most PaaS platforms are awesome… right up until you start scaling, adding teammates, or doing anything slightly “real.” Then it’s like watching a taxi meter tick up while you’re sitting at a red light.

Example: Vercel Pro is $20 per user/month (plus usage-based costs once you grow) [Vercel Pricing]. That’s not inherently evil—Vercel provides a lot. But if you’re a builder who wants predictable costs, you’re going to feel that per-seat model fast.

Coolify flips the script: you bring the server, Coolify gives you the platform layer, and your “bill” becomes mostly infrastructure. That’s the whole game.

The solution: Coolify on your own VPS (predictable + cheap)

Here’s the typical setup most people mean by “self-hosting Coolify”:

• 1 VPS (DigitalOcean, Hetzner, Hostinger, whatever you like)
• Coolify installed on that VPS
• Your apps + databases running via Docker

And the normal monthly cost? About $5–$7/month for the VPS. Coolify itself is free and open-source—no license fees, no per-user charges, no “unlock deployments” nonsense [Coolify GitHub].

The Bottom Line (TL;DR)

• Typical VPS cost: $5–$7/month
• Coolify software: $0 (open-source)
• Biggest variable: how many apps/databases you cram onto that server

Okay Marty, what am I actually paying for?

Let’s break down what’s real vs. what’s optional.

1) The VPS (your main cost)

This is the only mandatory cost if you’re self-hosting.

A good “starter but not painful” plan is something like Hostinger’s KVM 2 at $6.99/month, which includes 2 vCPU, 8GB RAM, and 100GB NVMe [Hostinger VPS]. That’s honestly plenty for development and small-scale production—especially if you’re not running five databases and a Kafka cluster because you saw it on a podcast.

Typical range: $5–$7/month for entry-level VPS that can run Coolify comfortably [Coolify].

2) Coolify software (free)

Coolify is 100% open-source. Your cost here is time, not money. You’re “paying” by owning the setup, updates, backups, and basic ops work [Coolify GitHub].

3) Domain name (optional-ish)

You can run everything on an IP address, sure. But you’ll hate yourself. A domain is usually like $10–$15/year. Not a big deal, but worth mentioning.

4) Backups (optional until the day they’re not)

Backups aren’t required… until they’re the only thing standing between you and a sad weekend.

You might pay for object storage (like S3-compatible storage) or use provider snapshots. This varies a lot, so I’m not baking it into the “typical” cost, but mentally budget a few extra bucks per month if you want grown-up reliability.

Minimum server requirements (so you don’t buy a potato)

Coolify will run on modest hardware, but “runs” and “runs well” are two different things—kind of like my old Honda Civic.

Minimum requirements to run Coolify effectively:

• CPU: 2 cores
• RAM: 2 GB
• Storage: 30 GB

Those are baseline numbers [Coolify]. For production-ish use where you’re hosting multiple apps and databases, you’ll generally want 2 CPU cores and 2–4GB+ RAM so things don’t crawl when you deploy or run migrations [Coolify].

Self-hosted vs Coolify Cloud: which is cheaper?

This is where people get tripped up. “Self-hosted” is cheapest in raw dollars, but “managed” is cheapest in brain cells.

Coolify Cloud (the managed option) costs $5/month for the first two connected servers, plus $3/month for each additional server [Coolify Pricing].

Important detail: Coolify Cloud doesn’t magically remove your infrastructure costs if you’re still paying for your own servers. What it buys you is convenience: less fiddling, more shipping.

My opinionated take

If you’re running one VPS and you’re comfortable with basic Linux stuff, self-host. It’s the best deal in the building world.

If the phrase “SSH key” makes you sweat, pay for managed. You’ll make that money back by not spending two nights debugging why Docker networking hates you today.

Common mistakes (a.k.a. how people accidentally make it expensive)

• Buying too small of a VPS. Then you spend your time optimizing memory instead of shipping features.
• Running databases without backups. The cost shows up later, and it’s brutal.
• Hosting everything on one tiny box forever. It’s fine early, but don’t be stubborn when you outgrow it.
• Ignoring storage needs. Logs, images, and DBs add up faster than you’d think.

FAQ

Is Coolify actually free?

Yep. It’s open-source and free to use. You pay for the server, not the software [Coolify GitHub].

Can I really run it on a $5 VPS?

For small projects, yes. But if you’re running multiple apps + a database (or two), you’ll have a better time with a slightly beefier plan in the $6–$7 range.

What’s the typical monthly cost all-in?

$5–$7/month is the typical baseline for the VPS. Add optional costs like a domain (~$1/month averaged annually) and backups (varies). Still usually far below most PaaS setups.

How does this compare to Vercel pricing?

Vercel Pro starts at $20/user/month plus usage-based overages [Vercel Pricing]. Coolify on a VPS is typically a flat $5–$7/month for the server—no per-user billing.

Summary bullets (so you can stop scrolling)

• Typical cost to run Coolify on your own VPS: $5–$7/month (the VPS is the main cost).
• Coolify itself: free and open-source—no licensing fees.
• Don’t cheap out too hard: aim for 2 CPU cores and 2–4GB RAM if you’re hosting real apps.
• Optional costs: domain + backups (worth it, in my book).
• If you want managed: Coolify Cloud is $5/month for the first two servers, then $3/month each [Coolify Pricing].

Your move: pick a $6–$7 VPS, install Coolify, deploy one app, and track your real monthly cost for 30 days. If you’re not paying less than your old PaaS bill, I’ll be shocked.