Three different network terms get used interchangeably in VPS marketing, and they aren't the same: port speed, transfer allowance, and egress fees. Understanding the difference is genuinely important — getting it wrong can mean a surprise four-figure AWS bill, or buying a "cheap VPS" that turns out to charge by the gigabyte. This guide explains what each term means, how to estimate what you actually need, and the key pricing trap (cough, AWS) that's bitten more startups than any other cloud expense.
TL;DR: Port speed = how fast data can move (Gbps). Transfer allowance = how much data per month included (TB). Egress fees = per-GB charges for outbound traffic above allowance. AWS, Azure, GCP make most of their networking margin on egress fees. Reputable VPS providers (us included) sell transfer allowance, no egress fees within allowance, low overage rates.
What we'll cover
Three different "bandwidth" terms
The word "bandwidth" gets used to mean three different things, often in the same paragraph:
- Port speed (a rate): "Your VPS has a 1 Gbps network port." Measured in bits per second. This is the maximum speed at which data can flow.
- Transfer allowance (a volume): "Your plan includes 4 TB per month." Measured in bytes. This is the total monthly data budget.
- Egress (sometimes a volume, sometimes a charge): "$0.08 per GB egress." Specifically refers to outbound data leaving your provider's network.
These are three separate concepts. A VPS can have a fast port (1 Gbps), a generous transfer allowance (10 TB), and zero egress fees within allowance — that's good. Or it can have a fast port (10 Gbps) but you pay $0.09/GB for everything outbound — that's the AWS pricing model, and it can get expensive fast.
Port speed
Port speed is how fast your VPS's virtual network card can send and receive data, measured in bits per second (bps).
Common VPS port speeds:
- 100 Mbps (0.1 Gbps): Budget plans, low-tier providers. Tops out at ~12 MB/s — slow for downloads but fine for typical web traffic.
- 1 Gbps: Industry standard for entry/mid-tier VPS. Tops out at ~125 MB/s — good for most workloads.
- 10 Gbps: Higher-tier or dedicated server territory. Tops out at ~1.25 GB/s — useful for video processing, large file delivery, busy servers.
- 25 Gbps and above: Specialty / large dedicated.
Port speed is the rate ceiling — you can't transfer faster than this no matter what. But you also rarely use the full port speed; most apps generate traffic in bursts well below the ceiling.
For a typical website serving a few thousand users a day, port speed barely matters — a 100 Mbps port handles it fine. Where port speed matters: bursty large transfers (video uploads, large downloads), backup systems, lots of concurrent connections, real-time streaming.
OliveVPS plans run on 1 Gbps or 10 Gbps ports depending on tier. The actual transfer speed your VPS sees is the lower of the port speed and the upstream link's available capacity at any given moment.
Transfer allowance
Transfer allowance (sometimes called "bandwidth" confusingly, or "data transfer," or "monthly transfer") is the total amount of data you can move in a billing period.
How it's measured varies:
- Outbound only (most common): Only data leaving your VPS counts toward the allowance. Inbound (people uploading to you, package downloads) is free or unmeasured.
- Bidirectional (less common): Both outbound and inbound count.
- 95th percentile (rare for VPS, common for dedicated): Your highest 5% of usage is dropped, and you pay based on the remaining peak rate.
OliveVPS, like most VPS providers, measures outbound only. Pulling Docker images, downloading apt packages, uploading data to your VPS — none of that counts.
Typical transfer allowances:
| Plan tier | Typical allowance | What it covers |
|---|---|---|
| ~$4/mo | 1-2 TB | Several thousand daily visitors on a normal site |
| ~$8/mo | 2-4 TB | Tens of thousands of daily visitors |
| ~$16/mo | 4-8 TB | Hundreds of thousands of visitors, or modest video |
| ~$30/mo | 8-16 TB | Significant traffic, modest streaming |
| Big dedicated | 20-100+ TB | Heavy file delivery, video, etc. |
For most people, the included allowance is comfortably more than they'll use. People underestimate how much 1 TB is — it's roughly 100,000 small webpage views, or 20,000 medium-quality YouTube-style videos.
Egress fees and the AWS trap
This is where the cloud industry has historically made a lot of money, and where new founders get burned.
"Egress" specifically means outbound traffic — data leaving the cloud provider's network. The hyperscalers (AWS, Azure, GCP) charge per-GB for egress, with rates that look small but add up shockingly fast.
AWS egress rates (approximate, varies by region):
- First 10 TB/month outbound: $0.09/GB
- Next 40 TB: $0.085/GB
- Next 100 TB: $0.07/GB
- Above 150 TB: $0.05/GB
That sounds reasonable until you do the math. 1 TB of egress = $90. If you're running a video site or a file delivery service, this scales fast:
- 100 GB/day = $270/month
- 1 TB/day = $2,700/month
- 10 TB/day = $27,000/month
For comparison, the same 10 TB/day on a VPS with included transfer + low overage rate is $50-200/month. That's the AWS pricing trap — it scales linearly with traffic, while VPS-style pricing has high included caps and cheap overages.
Companies have moved off AWS specifically to escape egress costs. Cloudflare's whole pitch around R2 (their S3 alternative) was "no egress fees." Bandwidth-heavy startups routinely save 70-90% by moving file delivery to non-hyperscaler providers.
Reputable VPS providers (DigitalOcean, Vultr, Linode, Hetzner, OliveVPS) include generous transfer allowances and have low or zero overage rates. We charge $0.005/GB overage which is roughly 18x cheaper than AWS.
How to estimate what you need
Rough heuristics for monthly transfer:
Static website / blog
Average HTML page = ~100KB. With images, 500KB-2MB per page. So 1 GB = 500-2,000 page views.
A 2 TB allowance covers 1-4 million page views per month. Most personal sites use under 100 GB.
WordPress site
Pages are larger (1-3 MB typically with images and JS). 1 GB = 300-1,000 page views. 2 TB ≈ 600,000-2,000,000 monthly page views.
Video streaming (self-hosted Plex / Jellyfin)
1080p streaming uses ~3 GB/hour. 4K uses ~10 GB/hour. 1 TB = ~330 hours of 1080p, ~100 hours of 4K. Streaming heavily can eat allowances fast.
SaaS API backend
API responses are usually small (1-100 KB). Even chatty APIs rarely exceed 50 GB/month/active user. Most B2B SaaS apps use surprisingly little bandwidth.
Game server
Minecraft uses ~50 KB/s/player active = ~13 GB/player-month at 8 hours/day. 20 players = ~260 GB/month. Larger or more action-heavy games scale up but rarely beyond a few hundred GB.
Discord bot
Tiny — usually under 10 GB/month even for large bots. Network is rarely a constraint.
VPN server
Highly variable based on what you're doing through it. General browsing = ~100 GB/month/user. Video streaming through VPN = several hundred GB/month/user. Plan generously here.
Generous transfer, low overage
OliveVPS plans include 2-16 TB depending on tier. Overage is $0.005/GB — roughly 18x cheaper than AWS egress. No surprise bills.
See VPS Plans →Provider pricing model comparison
| Provider | Pricing model | Egress overage |
|---|---|---|
| AWS / Azure / GCP | Per-GB egress, no included allowance | $0.05–0.12/GB |
| DigitalOcean | Included allowance + overage | $0.01/GB |
| Vultr | Included allowance + overage | $0.01/GB |
| Linode | Pooled allowance + overage | $0.005/GB |
| Hetzner | Included 20 TB, overage | €1/TB (~$0.001/GB) |
| OliveVPS | Included allowance + overage | $0.005/GB |
| Cloudflare R2 / Workers | Zero egress fees | $0/GB |
The hyperscalers are clear outliers. Almost every other provider treats egress as commoditized. If your workload is bandwidth-heavy and you're on AWS without a specific reason, you're probably paying 5-10x more than necessary for that part of your infrastructure.
Monitoring your usage
From inside your Linux VPS:
# Real-time bandwidth monitoring
sudo apt install iftop
sudo iftop # shows current per-connection rates
# Total network usage stats since boot
ip -s link show
# Daily/monthly aggregated stats
sudo apt install vnstat
sudo vnstat -i eth0 # daily summary
sudo vnstat -i eth0 -m # monthly summary
# nethogs for per-process network usage
sudo apt install nethogs
sudo nethogs
# Quick check of your transfer allowance via your provider's panel
# (most providers show used/remaining transfer in their dashboard)
Set up vnstat on a new VPS — it logs daily/monthly totals so you can see your transfer trends over time.
OliveVPS shows monthly transfer used and remaining in your control panel; we email a warning at 80% used so you have time to either upgrade or accept overage.
FAQ
What happens if I exceed my transfer allowance?
Depends on the provider. Some throttle you to a slow port speed (e.g. 100 Mbps) for the rest of the month. Some charge per-GB overage. Some do both. OliveVPS bills overage at $0.005/GB — no throttling, just a small bill at month end. Other providers' policies vary; check before committing.
Is "unlimited bandwidth" really unlimited?
No. "Unlimited bandwidth" in VPS marketing usually means "unlimited within fair use" — there's a practical cap somewhere, often 5-30 TB depending on plan, after which they throttle or terminate. Read the AUP. We don't market "unlimited" because it's misleading; we publish actual TB limits.
Does inbound traffic count toward my allowance?
At OliveVPS, no — only outbound counts. Most reputable VPS providers do the same. Some budget hosts count both directions; read the fine print.
How do I reduce egress costs on AWS?
Several strategies: cache aggressively at CloudFront (egress to CloudFront is cheaper than to internet), use S3 Transfer Acceleration sparingly, move bandwidth-heavy assets to non-AWS storage (Cloudflare R2, Backblaze B2), and consider moving the workload off AWS entirely if egress is a big part of your bill. Many companies save 60-80% by moving file delivery off AWS.
Does Cloudflare in front of my VPS reduce my outbound traffic?
Yes, often substantially. Cloudflare caches static assets at the edge, so requests for those don't hit your VPS at all — your outbound traffic is only for the cache misses and dynamic content. Sites with mostly static content can see 70-90% reduction in origin traffic. Cloudflare's free tier is more than enough for most use cases.