Azure Virtual Machines vs Hetzner Cloud

Hetzner Cloud 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 Virtual MachinesHetzner CloudDifference
Entry plan$3.79/mo
Compute$0.052/vCPU-hr$0.0052/vCPU-hr10× Hetzner Cloud
Data transfer out$0.087/GB$0.0012/GB72.5× Hetzner Cloud
Free tierYesYes

Source: Microsoft pricing (May 2026) · Hetzner 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 Virtual MachinesHetzner CloudCheaper
Side projectA personal site or small app with modest traffic, a few gigabytes of assets, and one small always-on process.$47$3.80Hetzner Cloudsaves $43/mo (92%)
Growing SaaSA funded product serving a few thousand daily users, with an image-heavy frontend and two application servers.$163$7.59Hetzner Cloudsaves $155/mo (95%)
Media-heavy siteA publisher or video product where delivery dominates the bill and compute is almost an afterthought.$908$3.80Hetzner Cloudsaves $904/mo (100%)

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 Virtual Machines

by Microsoft

Microsoft's on-demand compute, where existing enterprise agreements and hybrid-benefit licensing usually move the final bill more than the published rate does.

Free tier: 750 hours per month of a B1s instance for 12 months

Hetzner Cloud

by Hetzner

The cheapest mainstream cloud compute by a wide margin, with 20 TB of traffic bundled into every instance. Regions are limited to Germany, Finland, Singapore, and the United States.

Free tier: 20 TB of traffic included with every server

Common questions

Is Azure Virtual Machines or Hetzner Cloud cheaper in 2026?
Hetzner Cloud is cheaper in all 3 modelled workloads.
What is the difference in egress cost between Azure Virtual Machines and Hetzner Cloud?
Hetzner Cloud charges $0.0012 per GB against Azure Virtual Machines's $0.087, roughly 72.5× cheaper. Egress usually dominates the bill once traffic is measured in terabytes.
Which has the better free tier, Azure Virtual Machines or Hetzner Cloud?
Both publish one. Azure Virtual Machines: 750 hours per month of a B1s instance for 12 months. Hetzner Cloud: 20 TB of traffic included with every server.
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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