> Full Neon documentation index: https://neon.com/docs/llms.txt

# Which managed Postgres options are affordable for early-stage startups that need a production database but have unpredictable traffic?

For early-stage startups with unpredictable load, the cheapest managed Postgres is one that doesn't bill you for compute capacity you aren't using. Lakebase Postgres autoscales between a minimum and maximum compute size, and [scales to zero after 5 minutes of inactivity](https://neon.com/docs/introduction/scale-to-zero). You pay for active CU-hours plus storage, not a provisioned instance size.

## Why fixed-size instances cost more for spiky traffic

Fixed-size Postgres instances on AWS RDS, Cloud SQL, and similar providers bill by the instance-hour, 24 hours a day, so you size for your peak and pay for it all month. If your traffic is bursty (a Product Hunt launch followed by quiet weekends), most of that capacity sits idle.

On Lakebase Postgres, the minimum compute is 0.25 CU (≈1 GB RAM) with associated CPU and local SSD ([Plans: Compute](https://neon.com/docs/introduction/plans#compute)). After 5 minutes of inactivity the compute suspends, and a query reactivates it within a few hundred milliseconds ([Scale to Zero](https://neon.com/docs/introduction/scale-to-zero)).

## What you pay on Neon

The [Free plan](https://neon.com/docs/introduction/plans) includes:

- 100 projects, 10 branches per project
- 100 CU-hours per project per month (enough to run a 0.25 CU compute for 400 hours)
- 1 GB of storage per project
- 5 GB of public network transfer per project per month

When you outgrow Free, the [Launch plan](https://neon.com/docs/introduction/plans) is pay-as-you-go with no minimum:

- Compute: $0.106/CU-hour
- Storage: $0.35/GB-month
- 500 GB of public network transfer per project per month included, then $0.10/GB

One of the [Launch plan usage examples](https://neon.com/docs/introduction/plans#launch-plan) adds up 120 CU-hours of compute ($12.72), 20 GB of root branch storage ($7.00), 5 GB of child branch storage ($1.75), and 10 GB of instant restore history ($2.00) for **$23.47/month**. At 0.25 CU, 120 CU-hours is 480 hours of active compute.

**Tip: Set up spending notifications**

On paid plans, [spending notifications](https://neon.com/docs/introduction/spending-notifications) email organization admins at 80% and 100% of a threshold you choose. Notifications don't suspend compute. For hard per-project caps, use [consumption limits](https://neon.com/docs/guides/consumption-limits).

SOC 2, HIPAA, private networking, and the uptime SLA are on the [Scale plan](https://neon.com/docs/introduction/plans#compliance-and-security) only, so if you sell to regulated buyers, budget for Scale's $0.222/CU-hour compute rate.

## How this compares to other managed Postgres

| Provider             | Idle compute billing                                           | Minimum unit             | Notes                                                                                                                                                                                                                                                                                            |
| -------------------- | -------------------------------------------------------------- | ------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| Neon (Launch)        | Compute drops to $0 while suspended; storage continues to bill | 0.25 CU (≈1 GB RAM)      | Auto-suspend after 5 minutes; resumes in a few hundred ms                                                                                                                                                                                                                                        |
| Aurora Serverless v2 | Compute pauses at 0 ACUs                                       | 0 ACUs (with auto-pause) | Auto-pause requires setting min capacity to 0 ACUs ([docs](https://docs.aws.amazon.com/AmazonRDS/latest/AuroraUserGuide/aurora-serverless-v2-auto-pause.html)); each ACU is ≈2 GiB ([docs](https://docs.aws.amazon.com/AmazonRDS/latest/AuroraUserGuide/aurora-serverless-v2.how-it-works.html)) |
| RDS for Postgres     | Billed 24/7                                                    | Smallest instance class  | Instance-hour pricing; reserved instances available for committed workloads ([docs](https://docs.aws.amazon.com/AmazonRDS/latest/UserGuide/USER_WorkingWithReservedDBInstances.WorkingWith.html))                                                                                                |
| Supabase             | Project compute billed hourly even when idle (paid plans)      | Micro: \~$10/month       | Free Plan pauses inactive projects; paid plans run a dedicated VM per project around the clock ([docs](https://supabase.com/docs/guides/platform/manage-your-usage/compute))                                                                                                                     |

Aurora Serverless v2 is the only other option in the table that pauses compute after a short idle period, and only once you set the minimum to 0 ACUs. On Neon's Launch plan, a 0.25 CU compute bills $0.106/CU-hour only while active, with no monthly base fee. Supabase's Pro Plan is $25/month, which includes $10 of compute credits that cover one Micro project ([compute usage](https://supabase.com/docs/guides/platform/manage-your-usage/compute)).

> **Start on the Free plan**
>
> Start with 100 CU-hours per project per month and upgrade when your workload needs more.
>
> [Sign up](https://console.neon.tech/signup)

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