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DigitalOceanvsHetzner

TL;DR

DigitalOcean sells an opinionated developer cloud with managed databases, Kubernetes and a marketplace, at $4 a month for the smallest Droplet. Hetzner sells raw cloud and dedicated hardware at roughly half the price per gigabyte of RAM, concentrated in German and Finnish data centres, with prices that exclude VAT and IPv4. The choice usually comes down to whether you want managed services or the lowest cost per machine.

Hetzner's cloud prices live in its documentation, and the current numbers come from a price adjustment that took effect for new orders on 15 June 2026. The smallest shared-vCPU plan in the German and Finnish regions, CX23, is listed at €5.49 a month or $6.49 a month excluding VAT and excluding IPv4, with 2 vCPUs, 4 GB of RAM and 40 GB of NVMe storage. The ARM-based CAX11 with the same 2 vCPU, 4 GB and 40 GB shape is €5.99 or $6.99. Larger shared plans run at €8.49, €15.99 and €29.49 a month, and dedicated servers such as the AX42-1 start at €97.30 a month with a €49 setup fee.

Three structural differences decide most of these comparisons. First, what is included: Hetzner states that EU cloud servers include at least 20 TB of traffic and charge per extra terabyte, while DigitalOcean includes 500 GiB of outbound transfer with each Droplet and charges $0.01 per GiB after it. Second, what is excluded: Hetzner's quoted prices sit outside VAT and outside the IPv4 address, which is billed separately, and the page warns that certain changes to legacy-priced servers can switch them to current pricing. Third, what surrounds the machine: DigitalOcean pairs its VMs with managed Postgres, Kubernetes with a free control plane, a marketplace and paid support tiers; Hetzner pairs its cloud with a server auction for used hardware and dedicated machines at prices few public clouds match.

Pros & cons

👍 DigitalOcean Pros

  • Droplets start at $4 a month, billed by the second with a 60-second minimum
  • Managed databases from $15 a month cover Postgres, MySQL, MongoDB, Kafka, Caching, Valkey and OpenSearch
  • Kubernetes control plane is free; worker nodes are ordinary Droplets
  • Marketplace apps, VPCs at no cost, load balancers at $12 a month
  • Documentation, tutorials and support plans that start at $0

👎 DigitalOcean Cons

  • More expensive per gigabyte of RAM than Hetzner at every comparable size
  • Only 500 GiB of outbound transfer is included per Droplet, then $0.01 per GiB
  • Backups are an upsell: 20% of Droplet cost weekly, 30% daily
  • Fewer regions than the largest clouds, and no dedicated bare-metal catalogue at the low end

👍 Hetzner Pros

  • CX23 gives 2 vCPUs, 4 GB RAM and 40 GB NVMe for €5.49 a month, less than most 1 GB machines elsewhere
  • At least 20 TB of traffic included with EU cloud servers
  • Hourly billing with a monthly price cap, so a running server cannot exceed its monthly figure
  • Dedicated servers from €97.30 a month and a used-hardware server auction
  • ARM (CAX) and AMD EPYC (CCX) options, plus a separate US and Singapore price list

👎 Hetzner Cons

  • Prices exclude VAT, and the IPv4 address is billed on top
  • A June 2026 price adjustment raised most cloud plans, and legacy-priced servers can be moved to current pricing
  • Fewer managed services: no bundled Postgres-as-a-service equivalent to DigitalOcean's database product on the pricing page
  • Support and onboarding are lighter, and the data-centre footprint is European-first

Side by side

FeatureDigitalOceanHetzner
Smallest VM$4/mo, 512 MiB, 1 vCPU, 10 GiB SSDCX23 at €5.49/mo ($6.49), 2 vCPU, 4 GB, 40 GB NVMe
4 GB class4 GiB Droplet pricing scales with the published table; 2 GiB is $12/moCAX11 ARM at €5.99/mo ($6.99); CX23 shared at €5.49/mo
Billing basisPer second, 60-second minimumHourly with a monthly price cap
Included transfer500 GiB outbound per Droplet, then $0.01 per GiBAt least 20 TB at EU locations, then per-TB charges
Taxes and IPListed prices are the product pricePrices exclude VAT and exclude the IPv4 address
Managed databasesFrom $15/mo across seven database enginesNot bundled into the cloud price list
KubernetesFrom $12/mo with a free control planeManaged clusters sold separately from the VM price list
Dedicated hardwareDroplet plans only on the core price pageAX42-1 from €97.30/mo plus a €49 setup fee
RegionsData centres across four continentsGermany and Finland first, with US and Singapore price lists

Verdict

Pick DigitalOcean if

Pick DigitalOcean when you want services around the server

If your project will grow into a managed database, a Kubernetes cluster, a load balancer and a marketplace of one-click apps, DigitalOcean keeps all of that on one account and one bill, with documentation aimed squarely at developers. You pay a premium over raw hardware for that, and the metered extras - backups, transfer beyond 500 GiB, additional database RAM - are where the bill grows.

Pick Hetzner if

Pick Hetzner when the machine is the product

If what you actually need is a well-specified Linux server with generous RAM, a lot of included traffic and a low monthly figure, Hetzner's cloud and dedicated pricing is hard to beat, and the server auction goes further for anyone comfortable with used hardware. Budget for VAT, for the separate IPv4 line and for the fact that you will be operating the machine with lighter support around it.

What the vendors say, and what we did not measure

No user reviews or ratings were collected for this comparison. Prices come from api.linode.com/v4/linode/types for DigitalOcean's VM line and from Hetzner's own price-adjustment document and cloud pages, read alongside the vendor pricing pages.

Who Should Use Which?

Use DigitalOcean if you...

  • A startup that wants managed Postgres today and a Kubernetes cluster later, without changing providers
  • Teams that value tutorials, a marketplace and support plans priced from $0
  • Workloads spread across continents rather than concentrated in Europe
  • Projects where per-second billing matters more than the headline hourly rate

Use Hetzner if you...

  • EU-hosted workloads that need German or Finnish data residency at the lowest cost per GB of RAM
  • Traffic-heavy services that benefit from 20 TB of included transfer
  • Budgets that prefer one clear monthly cap over usage-based surprises
  • Homelab, staging and batch workloads where used dedicated hardware in the auction makes sense

FAQ

Is Hetzner really cheaper than DigitalOcean?

Per machine, yes. Hetzner's CX23 lists 4 GB of RAM at €5.49 a month excluding VAT and IPv4, while DigitalOcean's 2 GiB Droplet is $12 a month. DigitalOcean stays competitive on entry price with its $4 512 MiB Droplet and by bundling managed services Hetzner charges for separately or does not list.

Why do Hetzner prices exclude VAT and IPv4?

Hetzner is a German company selling business to business, so its published cloud prices are net figures; VAT is added at checkout, and the IPv4 address is a separate line item. DigitalOcean quotes a single headline price per Droplet, so the number on the page is closer to what you pay.

Did Hetzner raise prices recently?

Yes. Hetzner's documentation records a price adjustment effective for new orders and rescales from 15 June 2026, listing old and new hourly and monthly rates for its cloud and dedicated lines, and notes that some legacy-priced servers can be switched to current pricing.

Which is better for a managed database?

DigitalOcean lists managed databases from $15 a month across seven engines, with daily backups and automated failover. Hetzner's cloud price list does not include an equivalent managed database product, so on Hetzner you run and maintain the database yourself, which is cheaper but is your work.

How does billing differ when I delete a server?

Both bill hourly. Hetzner states that its cloud servers have a monthly price cap, so a running server never costs more than its monthly figure, and deleting before month end bills only the hourly rate. DigitalOcean bills per second with a 60-second minimum, which suits short-lived machines.

Spot an outdated price or feature? Let us know and we'll verify it.

Heraldware analysis engine

reviewed · data sourced from official product pages · sources: digitalocean.com, hetzner.com