How much will your hosting bills jump on renewal?

Why Web Hosting Companies Hike Prices on Renewal

The hosting industry relies heavily on promotional customer acquisition. To get you to sign up, companies subsidize introductory term billing (often losing money in Year 1). Upon contract expiry, they recover these losses by raising monthly rates by 100%, 200%, or even 350%. This price increase is called the **Renewal Markup Trap**.

Our Renewal Markup Calculator helps you estimate exactly how much more your website will cost in the long run. By calculating the average lifetime monthly cost (introductory term + renewal cycles), you can compare hosting deals objectively.

What is a Fair Renewal Markup?

Typically, any markup under **150%** is considered standard and fair in the industry. For example, moving from a promo price of $2.99/mo to a renewal price of $6.99/mo is a **133% markup** (fair). However, moving from $3.99/mo to $17.99/mo is a **350% markup** (trap). Cloudways VPS hosting has a **0% markup**, as their intro and renewal billing rates stay exactly the same.