A cheap VPS, or virtual private server, is your own Linux server. It has reserved CPU, memory and disk, but you share the physical hardware with others. VGNCloud's virtual servers are in Helsinki, and the smallest plan costs €5.90/mo. This guide covers what a cheap VPS actually gets you, what a small plan is enough for, and where saving money starts to cost you.
What "cheap VPS" means
Cheap does not mean bad. An affordable VPS is usually unmanaged: you get the server with root access, and OS updates, the firewall and software are your job. The price stays low because you are not paying for someone else's admin time. What that means in practice: Unmanaged VPS.
In return you get freedom. You can install Docker, a database, a VPN, a game server or your own app without web hosting limits. A VPS is a machine, not a folder on a shared box. If you do not want to run a server yourself, read Web hosting or VPS? first. Web hosting is often the better and cheaper choice then.
Prices and plans in a table
All plans are in Helsinki. Each one has an NVMe disk, a dedicated IPv4 address and root access from the first boot.
| Plan | vCPU | RAM | NVMe | Traffic/mo | Price/mo |
|---|---|---|---|---|---|
| S1 | 2 | 2 GB | 25 GB | 1 TB | €5.90 |
| S2 | 3 | 4 GB | 40 GB | 3 TB | €7.90 |
| S3 | 4 | 6 GB | 60 GB | 5 TB | €10.90 |
| M1 | 4 | 8 GB | 100 GB | 8 TB | €12.90 |
| M2 | 6 | 12 GB | 150 GB | 10 TB | €16.90 |
| M3 | 6 | 16 GB | 200 GB | 10 TB | €19.89 |
Larger plans and current availability are on the VPS page.
Only outbound traffic counts toward the allowance. Inbound is free and not counted. If you go over, the extra is €1.30 per TB, pro rata, and the machine is not throttled. More on this: Traffic and bandwidth.
Why keep the server in Finland
If your users are in Finland, the Baltics or the Nordics, a shorter distance usually means lower latency than a server in Central Europe. Page loads, API calls and SSH sessions travel a shorter path. We do not promise milliseconds. Measure from your own network.
The second reason is data. The machine is in one place, Helsinki, inside the EU. You do not have to work out which country the server really sits in. More: Why Helsinki?
What 2, 4 and 8 GB are enough for
Memory needs depend on what you run. A rough rule of thumb:
- 2 GB (S1, €5.90/mo): one light website or API, a VPN (for example WireGuard), a Discord bot, a small database, a test or learning environment. A good first VPS.
- 4 GB (S2, €7.90/mo): a WordPress or WooCommerce site with moderate traffic, a few Docker containers, Nextcloud for a small team.
- 6–8 GB (S3/M1, €10.90–12.90/mo): several sites on one server, CI/CD jobs, heavier databases, a game server for a few friends.
- 12–16 GB (M2/M3, €16.90–19.89/mo): production apps with background workers, a cache and a database on the same machine.
If you are unsure, start smaller. You can grow later: the machine is upgraded in place to a bigger plan, and the price is prorated. The disk never shrinks and there is no downgrade, so move up only when you need to. See How to choose a VPS plan.
Where a cheap VPS saves – and where you must not save
An acceptable place to save is management. You do the updates and configuration yourself. That is lighter work once automatic security updates are on.
Do not cut corners on these:
- Disk type. NVMe is clearly faster than SATA SSD or HDD for databases and small files. See NVMe vs SATA.
- Your own IPv4 address. If a cheaper offer shares the address or bills IPv4 separately, add that cost before you compare. See IPv4.
- Backups. A cheap server without backups gets expensive the moment something breaks. VGNCloud does not take VPS backups yet, so they are your responsibility. Read VPS backups.
- Virtualisation. KVM gives you a real virtual machine with its own kernel, not a container that shares one. See KVM VPS.
The lowest list price is not the bill. Compare a complete machine: root, your own address, NVMe and a clear traffic price.
Who a VPS is not for
If you only need one WordPress site and do not want to touch the command line, web hosting is easier and cheaper (from €2/mo on VGNCloud). If you want someone else to run a WordPress site for you, see managed WordPress (from €60/mo). Game servers are on ValueGameNode. And if your users are mostly in Central Europe, compare options in Cheap VPS in the EU.
How to get started
- Pick a plan on the VPS page.
- Choose a Linux image at order time. You can paste your own SSH key.
- Log in: First login and SSH.
- Set up the firewall: Cloud firewall.
Everything we sell, side by side: the cloud catalogue.
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