Azure Database for PostgreSQL vs Neon Serverless Postgres

Azure Database for PostgreSQL is cheaper across every workload modelled here.

List prices checked

Rate cards side by side

Only the axes at least one of them bills on. A dash means that provider does not charge for it.

Billing axisAzure Database for PostgreSQLNeon Serverless PostgresDifference
Entry plan$12.41/mo$19.00/mo1.5× Azure Database for PostgreSQL
Storage$0.115/GB-mo$0.350/GB-mo3× Azure Database for PostgreSQL
Free tierYesYes—

Source: Microsoft pricing (May 2026) · Neon pricing (May 2026). Published list prices only — committed-use discounts, regional variation, and per-request charges are not included. Not yet independently re-checked against the vendor’s page.

Monthly cost for three real workloads

The rate cards applied to identical usage. This is where the winner changes.

WorkloadAzure Database for PostgreSQLNeon Serverless PostgresCheaper
Side projectA personal site or small app with modest traffic, a few gigabytes of assets, and one small always-on process.$15$26Azure Database for PostgreSQLsaves $11/mo (43%)
Growing SaaSA funded product serving a few thousand daily users, with an image-heavy frontend and two application servers.$70$194Azure Database for PostgreSQLsaves $124/mo (64%)
Media-heavy siteA publisher or video product where delivery dominates the bill and compute is almost an afterthought.$242$719Azure Database for PostgreSQLsaves $477/mo (66%)

Workload definitions are identical on every comparison page, so figures here can be read against any other pair in the same category.

What each one is for

Azure Database for PostgreSQL

by Microsoft

Microsoft's managed Postgres in flexible-server and burstable configurations, priced close to RDS and integrated with Entra ID for authentication.

Free tier: 750 hours per month of a burstable instance for 12 months

Neon Serverless Postgres

by Neon

Postgres with storage and compute separated, so idle databases scale to zero and cost nothing. Branching a database is a copy-on-write operation rather than a dump and restore.

Free tier: 0.5 GB of storage and 190 compute hours per month

Common questions

Is Azure Database for PostgreSQL or Neon Serverless Postgres cheaper in 2026?
Azure Database for PostgreSQL is cheaper in all 3 modelled workloads.
Which has the better free tier, Azure Database for PostgreSQL or Neon Serverless Postgres?
Both publish one. Azure Database for PostgreSQL: 750 hours per month of a burstable instance for 12 months. Neon Serverless Postgres: 0.5 GB of storage and 190 compute hours per month.
What do these estimates not include?
Committed-use and reserved discounts, regional price variation, per-request API charges, support plans, and minimum retention periods. All of those move real invoices, sometimes by a lot. These figures compare published list prices for the same workload, which is the comparison the rate cards alone cannot give you.

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