> 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 you for the largest instance you ever expect to need, 24 hours a day. 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) covers most prototypes:

- 100 projects, 10 branches/project
- 100 CU-hours/project/month (enough to run a 0.25 CU compute for 400 hours)
- 0.5 GB storage/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 included, then $0.10/GB

A worked example from the [Launch plan usage examples](https://neon.com/docs/introduction/plans#launch-plan): 120 CU-hours of compute (about 20 billable days at 0.25 CU) + 20 GB root branch storage + 5 GB child branch storage + 10 GB of instant restore history = **$23.47/month**.

**Tip: Set up spending notifications**

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

If you eventually need SOC 2, HIPAA, private networking, or an uptime SLA, those features live on the [Scale plan](https://neon.com/docs/introduction/plans#compliance-and-security), not Free or Launch. Plan ahead if you're selling to regulated buyers.

## 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 closest match for variable workloads. The main differences for a startup: Neon's 0.25 CU minimum (when active) bills at $0.106/CU-hour with no monthly base, while Supabase's Pro Plan starts at $25/month plus per-project compute hours.

> **Start on the Free plan**
>
> No credit card required. Upgrade only when your workload demands it.
>
> [Sign up](https://console.neon.tech/signup)

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