At Cloudways, billing is designed to be simple and fair — you only pay for the resources you actually use. This includes charges for server usage, deletion, and add-ons, ensuring transparency and flexibility in billing.
Depending on your server provider and how long your server runs, charges are calculated either on a monthly or hourly basis.
This guide explains how monthly and hourly billing works, with examples to help you understand the difference. It also covers billing scenarios for server deletion and add-ons.
Table of Contents:
Monthly Billing (DigitalOcean, Linode, Vultr)
For servers hosted on DigitalOcean, Linode, or Vultr, monthly billing applies if your server is active for the entire month.
Each plan has a monthly cap (a maximum limit you won’t be charged above).
Even if the month has more than 672 hours, you’ll still pay only the capped monthly price.
Example:
A 48GB Premium server has a capped price of $388/month. If it runs all month, you’ll be charged $388, regardless of the total number of hours.
Hourly Billing
If your server runs only part of the month, you’ll be billed based on the hourly rate for the exact time it was active.
This ensures you pay only for the hours your server was used.
Examples:
A 48GB Premium server that ran for 666 hours in July:
666 × $0.5774 = $384.54
A 16GB Premium server that ran for 78 hours:
78 × $0.253 = $19.73
Total for the month = $404.27
Since the 48GB server did not run the full 672 hours, the $388 monthly cap did not apply.
Billing After Server Upgrades (DigitalOcean, Linode, Vultr)
If you upgrade or downgrade your server during the same month, charges are split hourly based on the time each server size was active.
Example:
16GB Premium server active for 200 hours:
200 × $0.253 = $50.60
Upgraded to 48GB Premium server for 472 hours:
472 × $0.5774 = $272.53
Total = $323.13
AWS and Google Cloud (GCE) Billing
For AWS and GCE servers, there is no monthly cap. Billing is always calculated hourly:
You pay for the exact number of hours your server runs.
Costs scale directly with usage.
Add-on Billing
Third-party add-ons, such as DNS Made Easy, are billed differently. These add-ons are charged for the full month upon activation, regardless of how long they are used before deletion. For instance, if you activate and delete an add-on within the same month, the charge will still appear on your invoice for the entire month.
FAQs
Server Deletion Billing
Q: If I delete a server, will I still be charged?
Yes, you will be billed for the time the server was active up to the point of deletion. Q: Will I be charged for an inactive server?
No, once a server is inactive or deleted, you will not incur future charges for it.
Add-on Billing
Q: Are add-ons billed hourly like servers?
No, add-ons are billed for the full month upon activation, regardless of usage duration.
Q: Why are my server charges inconsistent even if it wasn't active for the entire month?
With DigitalOcean, Linode, or Vultr, if a server doesn’t run all month, charges are based only on the hours it was active (running or stopped). If a server isn't active for the entire month, you're only charged for the time it was used, so no refunds for unused hours.
Q: What happens if my server runs all month?
DigitalOcean, Linode, Vultr: You pay the flat monthly fee (e.g., $388 for a 48GB plan).
AWS, GCE: Billed hourly with no monthly maximum.
Q: What if my server only runs for a few days?
You’ll only be charged for the hours it was active at an hourly rate.
Q: Do all providers bill this way?
DigitalOcean, Linode, Vultr: Hourly if not active all month, monthly capped if active the entire month.
AWS and GCE: Always hourly, no monthly cap.
Q: What if I scale my server mid-month?
When you scale your server (e.g., upgrading from DO 16GB to DO 48GB), billing is split based on the hours each plan was active. Each size is charged at its respective hourly rate, and the total is the sum of both charges. Monthly caps only apply if a single plan runs for the full month.
Tip: To avoid surprises, always check your server’s hourly rate and monthly cap before launching or upgrading a server.
That’s it! We hope this article was helpful.
Need Help?
If you need assistance, feel free to:
Visit the Cloudways Support Center
Chat with us: Need a Hand > Send us a Message
Or create a support ticket anytime.
We're here 24/7 to help you!