Choosing & sizing

What is the cheapest VPS that is actually usable?

Short answer

About $4 a month buys 1 vCPU, 1 GB of RAM and 20 GB of NVMe on real KVM virtualisation. That is genuinely enough for a WireGuard VPN, a DNS resolver, a Tor relay, a small bot or a static site. Below that price you are almost certainly buying an oversold container rather than a virtual machine.

The trap at the bottom of the market is virtualisation type. OpenVZ and LXC instances share the host kernel, which means memory is routinely oversold, Docker does not work reliably, and you cannot load kernel modules — so no WireGuard on older hosts, no custom firewall modules, no nested virtualisation.

A 1 GB KVM instance running Debian or Alpine has roughly 850 MB genuinely available after the operating system. That is a comfortable amount for a single-purpose service and a tight amount for anything with a database.

See also: Nested virtualisation · WireGuard · OpenVZ · vCPU