Two hosting plans can look similar in price and turn out to cost very different amounts. Providers quote prices in different currencies, over different billing periods, and with or without tax. Before you can compare two plans fairly, you need to convert them to the same terms.
Monthly vs. annual quoting
Many providers advertise a monthly price that is only available if you pay for a year or more upfront. Others quote the true month-to-month price, which is usually higher. Some quote an annual price only.
This makes direct comparisons misleading. A plan advertised at $8 a month on a three-year term is not directly comparable to a plan at $10 a month billed monthly. The first requires a larger payment upfront and a longer commitment, and the second can be cancelled at any time.
When you compare, check:
- Which billing period the advertised price actually applies to.
- Whether a shorter billing period is available, and what it costs.
- Whether the price applies to the first term only, as explained in Introductory Pricing vs. Renewal Pricing: The Oldest Trick in Hosting.
Currency: NZD or USD?
Many hosting providers that sell to New Zealand customers are based overseas and quote prices in US dollars. Some show a dollar sign without saying which currency it refers to.
A price of $5 in US dollars will cost noticeably more in New Zealand dollars, and the exact amount will move with the exchange rate. Your bank may also charge a foreign currency fee on overseas transactions. If a price does not state its currency, it is worth confirming before you compare it with a plan priced in NZD.
Where a provider is based can also affect where your website is stored, which is covered in Where Is Your Data Actually Stored? Server Location and Data Sovereignty.
GST: inclusive or exclusive?
New Zealand GST is 15%. Prices aimed at businesses are often shown excluding GST, while prices aimed at consumers usually include it. Overseas providers may or may not add GST at checkout.
To compare fairly, convert every price to the same basis. If one plan is $10 excluding GST and another is $11 including GST, the second is actually the cheaper of the two ($10 + 15% = $11.50).
Working out a true cost per year
The most reliable way to compare plans is to work out what each one costs over a full year, in New Zealand dollars, including GST. For each plan:
- Take the price you will pay after any introductory period ends.
- Convert it to an annual figure. Multiply a monthly price by 12, or divide a multi-year price by the number of years.
- Convert it to NZD if it is quoted in another currency.
- Add 15% if the price excludes GST.
- Add the yearly cost of any extras you need that are not included, such as backups or email. What Should Come Standard: SSL, Backups, and Email Hosting covers which extras to look for.
This gives you one figure per plan that can be compared directly. It is also why Host Compare compares renewal prices rather than introductory ones.
A quick checklist before comparing two quotes
- Are both prices in the same currency?
- Do both include, or both exclude, GST?
- Are both for the same billing period?
- Is either price introductory, and if so, what does it renew at?
- Does each plan include the features you need, or will some cost extra?
If you can answer all five, you are comparing like with like. These questions are also included in A Practical Checklist for Comparing Hosting Providers Side by Side.
*This article was drafted with the help of AI. It was fact-checked and edited by a real person.