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Cloud · head to head

Neon vs Postgres

Neon logo

Neon

Cloud

Serverless Postgres for modern developers

From
Free
Rated
-
Postgres logo

Postgres

Technology

The world's most advanced open source database

From
Free
Rated
-

The short version

  • Each has a real cost: Neon compute pricing at $0.106-$0.222/CU-hour means costs scale directly with workload, unlike fixed-price alternatives; Postgres each major version is supported for only 5 years after its initial release, after which it is end-of-life
  • They diverge on capability: Neon covers Serverless PostgreSQL, Postgres covers ACID compliance.
  • Prices and features above were last checked on 30 August 2026.

Where they differ

Only the attributes on which Neon and Postgres actually diverge.

Attributes where Neon and Postgres differ
AttributeNeonPostgres
Pricing modelUnknownopen-source
PlatformsCloudLinux, Windows, Macos, Docker
CategoryCloudTechnology
Founded20211996

Identical on both: starting price (Free), free tier (Yes), user rating (Not yet rated).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in Neon

  • Serverless PostgreSQL
  • Database Branching
  • Autoscaling
  • Bottomless Storage
  • Point-in-time Recovery
  • Connection Pooling
  • Read Replicas
  • Instant Cloning

Only in Postgres

  • ACID compliance
  • Complex queries
  • Foreign keys
  • Triggers
  • Views
  • Stored procedures
  • JSON/JSONB support
  • Full-text search

Both cover

  • Node.js

What people use each for

The jobs each tool is most often brought in to do.

Neon

  • Serverless applicationsnot Postgres
  • Development databasesnot Postgres
  • Preview environmentsnot Postgres
  • Testingnot Postgres

Postgres

  • Running a general purpose relational database for applicationsnot Neon
  • Self-hosting an open source SQL database with no licence feenot Neon
  • Workloads needing extensions, JSON and full text search in one enginenot Neon

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

Neon

  • Compute pricing at $0.106-$0.222/CU-hour means costs scale directly with workload, unlike fixed-price alternatives
  • Separation of compute and storage may add complexity to cost prediction compared to all-in-one plans

Postgres

  • Each major version is supported for only 5 years after its initial release, after which it is end-of-life
  • Major version upgrades break on-disk compatibility and require a full dump and reload or the pg_upgrade tool
  • New major versions ship about once a year, so staying supported means a disruptive upgrade cycle
  • Minor releases contain only frequently-encountered bug fixes, low-risk fixes, security issues and data corruption fixes, so feature gaps are not addressed within a major version
  • There is no vendor SLA; commercial support must be bought separately from third party professional services listed by the project

Pricing, plan by plan

Neon

Free
  • FreeFree
    • 100 CU-hours/month
    • 0.5 GB storage
    • 1 project
  • Launch$15/month
    • Pay-as-you-go compute
    • $0.35/GB storage
    • Multiple projects
  • Scale$31/month
    • Higher compute rates
    • 99.95% SLA
    • HIPAA compliance

Postgres

Free
  • Community EditionFree
    • Full database features
    • No limitations
    • Community support

Which should you pick?

Choose Neon if

  • You need serverless postgresql.
  • You want to start without paying.
  • You work on Cloud.
  • You also want database branching.

Choose Postgres if

  • You need acid compliance.
  • You want to start without paying.
  • You work on Linux, Windows, Macos, Docker.
  • You also want complex queries.

Questions people ask

Is Neon or Postgres better?
Neither clearly leads. Neon starts at Free and Postgres at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Neon or Postgres?
Neon starts at Free and Postgres at Free.
Does Neon or Postgres run on more platforms?
Neon runs on Cloud. Postgres runs on Linux, Windows, Macos, Docker.
Can I use Neon for free?
Both have a free tier, so you can try either at no cost before committing.
What is Neon best used for?
Neon is most often used for serverless applications, development databases, preview environments, testing. Of those, serverless applications and development databases are not what Postgres is typically brought in for.
What can Neon do that Postgres cannot?
Neon covers Serverless PostgreSQL, Database Branching, Autoscaling, Bottomless Storage. Postgres covers ACID compliance, Complex queries, Foreign keys, Triggers. Both handle Node.js.

Answered from the vendors’ own pages

Neon: What is Neon and what makes it different?

Neon is a serverless PostgreSQL database that separates compute and storage, enabling automatic scaling and instant database branching. After acquisition by Databricks in May 2025, pricing has been significantly reduced.

Source
Postgres: How much does PostgreSQL cost to use?

PostgreSQL is completely free to download, install, and use. No licensing fees, subscription costs, or per-seat charges apply. The database is open source under the PostgreSQL License. Source: https://www.postgresql.org

Source
Neon: Does Neon offer a free tier?

Yes, Neon's free tier includes 100 compute units per month and 0.5 GB of storage. This is suitable for development and small projects.

Source
Postgres: Are there commercial PostgreSQL support options available?

Official PostgreSQL (the project) is free. Commercial PostgreSQL services such as hosting, professional support, training, and managed database services are offered by third-party vendors, not the PostgreSQL project itself. Source: https://www.postgresql.org

Source
Neon: What are the paid plans and pricing for Neon?

Neon offers consumption-based pricing on Launch ($0.106/CU-hour, approximately $15/month) and Scale ($0.222/CU-hour, approximately $31/month) plans with separate storage billing at $0.35/GB-month. No monthly minimum required.

Source
Postgres: Do I need a license to use PostgreSQL commercially?

No. PostgreSQL is open source under the PostgreSQL License, which permits free commercial use without royalties, licensing fees, or support obligations. Source: https://www.postgresql.org

Source
Neon: What features does Neon provide?

Neon includes git-like branching for database copies, point-in-time recovery, data anonymization for testing, managed authentication, serverless functions, and object storage that branches with projects.

Source
Neon: What compliance and reliability guarantees does Neon provide?

Neon's Scale tier offers 99.95% uptime SLA, HIPAA compliance, SOC2 certification, and private networking via PrivateLink at no extra cost.

Source
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