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VPSGrid Cloud Hosting OÜ · 8 July 2026 · AS212345

Why we only sell six- and twelve-month terms

Monthly billing is a tax on everyone. The math that made us prepaid-only, and what the term actually buys you.

A spreadsheet argument, not a philosophy

In the budget VPS market, monthly-billed customers churn at forty to sixty percent a year. That churn is not free: it pays for re-provisioning, payment retries, dunning emails and the marketing that has to replace every departed customer just to stand still. All of that shows up in the price of the product that the staying customers pay for.

When we started in 2023 we ran the numbers both ways. Sell twelve months prepaid and the revenue lands once, the account is quiet, and the only recurring cost is the hardware itself. The saving is roughly a fifth of the monthly-equivalent price, and we decided the customer should keep that fifth instead of us spending it on a sales team.

What the term actually buys you

A Nano on the twelve-month term is €1.90 per month, billed once as €22.80. Nothing renews automatically — when the term ends, the server runs out its grace period and either gets renewed at the current rate or is deleted. There is no card on file to charge, no 'auto-renewal enabled by default' checkbox buried in an account page, and no renewal that costs more than the one before it: the renewal rate is never quoted above the rate you already pay.

The six-month term exists for people who want the prepaid model without the commitment, and it costs about twenty-six percent more per month — that gap is the honest price of the option, not a penalty.

What happens if you do not renew

The server keeps running until the term ends, then it is suspended. For fourteen days it can be renewed or its data downloaded from the console; after that the disk is wiped and the IP released. No surprise invoices, no collections agency, no 'we tried to charge your expired card' emails.

We have considered offering monthly billing at a premium. The spreadsheet still says no: the customers it would attract are the ones the numbers say leave, and the premium would have to be large enough to be insulting.

What this means for the price you see

Every price on the site is the price. There are no teaser rates, no first-year discounts, no 'renews at 3x' asterisks, because the entire point of the model is that we do not need any of those. The 72-hour refund covers the buyer's remorse that marketing normally has to paper over.

If you are comparing us with a monthly-billed provider, add their expected renewal increase, their setup fee and the year of your time their cancellation process will consume, and then compare again. We think the term is the feature.