Annual web hosting is usually cheaper than paying monthly, and with us it’s two months cheaper: you pay for 10 months and get 12. That’s worth taking once your site is settled and you’re happy with your host. While anything is still uncertain, pay monthly for a little longer, because a cheap year you can’t leave isn’t a saving.
Key takeaways
- Paying yearly for 10 months’ price saves about 16.7% of the year’s cost.
- Monthly is smarter for a new site, a rebuild in progress or a plan you may soon outgrow.
- A yearly payment for 12 months or less may be deductible straight away for a small business. Ask your accountant.
- Avoid multi-year prepayments on discounted first terms. Check the renewal price and the refund terms first.
How much does annual hosting really save?
With our plans, the yearly price is exactly 10 times the monthly price. Here’s what that means on a few of our plans, all plus GST:
| Plan | 12 months paid monthly | Paid yearly | You save |
|---|---|---|---|
| Personal Essentials ($29 a month) | $348 | $290 | $58 |
| Personal Advantage ($52.50 a month) | $630 | $525 | $105 |
| Business Essentials ($98 a month) | $1,176 | $980 | $196 |
| Business Advantage ($197 a month) | $2,364 | $1,970 | $394 |
| VPS Essentials ($457 a month) | $5,484 | $4,570 | $914 |
That’s a discount of about 16.7%. For comparison, the Reserve Bank’s cash rate target is 4.85% from 4 November 2026 (RBA). If the money would otherwise sit in the bank, paying upfront is usually the better return.
You can see every plan’s monthly and yearly figure on our honest hosting prices page.
When is monthly hosting the smarter choice?
A discount only helps if you’d have stayed anyway. Monthly billing costs a little more, but it buys flexibility. It’s the better choice when:
- Your site is new or has just moved. Give the host a month or two to prove itself before you commit a year.
- A rebuild is under way. The new site may need more memory, a different plan or a different setup.
- You expect to grow soon. A shop launch or ad campaign can change what you need. Ask how a mid-term upgrade is billed.
- Cash flow is tight this quarter. Spreading the cost can matter more than the saving.
Before you size a plan for a year, check what you’re actually getting. “Unlimited” offers still have limits, as our guide to unlimited bandwidth hosting explains.
When does paying yearly make sense?
Switch to annual billing once your site is stable, you’ve tested the host’s support and the plan clearly fits.
There may be a tax angle too. The ATO says a small business entity can usually claim an immediate deduction for a prepaid expense when the service period is 12 months or less and ends by the last day of the next income year (ATO). Ask your accountant whether paying before 30 June suits you.
How do I pay less without getting locked in?
- Check the renewal price. Many cheap multi-year deals renew at much higher rates. Our article on web hosting renewal price rises shows how to compare the true three-year cost.
- Read the refund terms. Ask what happens if you leave in month four. Our plans have a 30-day money-back guarantee.
- Keep your own backups and logins. Then leaving early is an inconvenience, not a crisis.
- Diarise the renewal. Set a reminder a month before the year ends and review the plan then.
- Treat yearly invoices with care. Australians lost $166.8 million to payment redirection scams in 2025 (ACCC). Check any changed bank details by phone before you pay.
How do our billing options work?
We don’t use cheap first terms that jump later. You pay the same monthly price from the start, and paying yearly gets you 12 months for the price of 10. Every plan includes free SSL and free migration and runs in NEXTDC data centres in Brisbane and Melbourne. Compare our hosting plans, or see how prices sit across the market in our guide to web hosting cost in Australia.
Hosting keeps the server running. Updates, backups and security for the website itself are covered by our Maintain & Protect website care plans, which you can add monthly.
Frequently asked questions
Is annual web hosting cheaper than monthly?
Usually, yes. With our plans, paying yearly costs 10 times the monthly price, so you get two months free. Other hosts set their own discounts, so compare the full-year cost and the renewal price, not just the headline monthly figure.
Can I switch from monthly to yearly billing later?
With most hosts you can, and it’s a sensible path. Start monthly while the site settles, then switch to yearly once you’re sure the plan and the host suit you.
What happens if I pay yearly and want to leave?
That depends on the host’s refund terms, so read them before you pay. Our plans include a 30-day money-back guarantee. After that, ask about any refund for unused months before you commit to a long term.
Is prepaid hosting tax deductible?
Hosting for your business is generally a business expense. The ATO’s 12-month rule can let a small business deduct a prepayment of 12 months or less in the year it’s paid. Your accountant can confirm how it applies to you.
Sources
- Cash rate target, Reserve Bank of Australia, November 2026
- Deductions for prepaid expenses 2026: small business entities, Australian Taxation Office, May 2026
- Continued action critical to combat fraud as annual scam losses exceed $2 billion, ACCC, 30 March 2026