Hetzner + Coolify: the real Vercel alternative in 2026
5€/mo Hetzner VPS + Coolify (open source). Auto deploys, SSL, multi-app. When it beats Vercel for indie SaaS.
Israel Palma
3 min read
Vercel is brilliant to start with and expensive to scale on. The bill that's manageable at 100 users
gets uncomfortable at 10,000. Plus vendor lock-in: your whole stack depends on their edge, their
features, their pricing.
The real alternative for indie SaaS in 2026 is **Hetzner + Coolify**: a 5€/mo Hetzner VPS, automatic
deploys with self-hosted open-source Coolify. About a coffee a month. And it hosts all your apps.
## The problem with Vercel at scale
| Plan | Price | Limits |
| ---------- | --------------- | ------------------------------ |
| Hobby | free | no commercial traffic, no team |
| Pro | $20/seat/mo | 1TB bandwidth, 600h serverless |
| Enterprise | "talk to sales" | depends |
At 1k active users on a B2B SaaS you're close to Pro's limit. Add standard features (preview
deploys, analytics, edge config) and you easily pass $200/mo for a single app. If you have 3-5
products, multiply.
## Hetzner: cheap, serious hardware
A Hetzner CX22 VPS (2 vCPU, 4GB RAM, 40GB SSD) costs ~5.80€/mo. You get:
- Real capacity (no "cold start lottery")
- Germany or Finland (EU DC, easy GDPR)
- Generous egress (20TB/mo included)
- Hourly billing if you want to test
With one VPS in that range, an indie SaaS at 1-5k users runs comfortably.
## Coolify: the missing control plane
Coolify is self-hosted Vercel/Heroku. Open source. Install it on your VPS and you get:
- Deploy from GitHub with a click
- Automatic SSL (Let's Encrypt)
- Multiple apps on the same VPS
- Databases as resources (Postgres, Redis, etc.)
- Configurable backups
- Webhooks, env vars, domains — all from a UI
It's the marriage of Vercel's convenience and VPS pricing.
## Setup in 2 hours
1. **Buy a Hetzner VPS**: sign up, spin up Ubuntu 24.04, ssh in.
2. **Install Coolify**:
```bash
curl -fsSL https://cdn.coollabs.io/coolify/install.sh | bash
```
3. **Set up your domain**: point DNS to the VPS, Coolify wires SSL on its own.
4. **Connect GitHub**: add repo, choose branch, Coolify deploys on every push.
5. **Env vars**: load them via UI or `.env`.
In 2 hours you have the app deployed with HTTPS, automatic deploys, and a dashboard. No AWS, no
hand-rolled docker-compose.
## Real performance
| Metric | Vercel | Hetzner + Coolify |
| ---------- | ------------------ | ----------------------- |
| Cold start | depends on plan | always warm |
| EU TTFB | ~50ms | ~30ms (EU DC) |
| US TTFB | ~30ms | ~120ms (no global edge) |
| Build time | ~2-3min with cache | ~3-4min |
If your market is 80% Europe, Hetzner wins on latency. If your market is global, Vercel wins on edge
but Hetzner is still "good enough" for most indie SaaS.
## When Vercel still wins
- Very spiky traffic (millions of visits concentrated in hours) — Vercel's scaling helps
- 100% global audience with extreme latency requirements
- You don't want even 2 hours of setup
- Big team where "cost is budget, time isn't"
## When Hetzner + Coolify clearly wins
- Indie / 1-5 people
- Mostly European or regional audience
- 1-N apps on the same VPS (flat pricing)
- You want control over your stack
- Lock-in scares you
## Typical mistakes
**1. Not setting up backups from day 1**: Coolify supports it, do it. The day you lose the DB
without backup is game over.
**2. Apps on the same VPS without DB separation**: if one app crashes and shares a DB with another,
both go down. Separate them.
**3. Forgetting the firewall**: Hetzner doesn't ship an aggressive firewall by default. Turn on
theirs (free) and only open 22, 80, 443.
**4. Committing secrets**: env vars live in Coolify, not in a committed `.env`.
## Bottom line
Hetzner + Coolify is the option that makes most sense for indie SaaS in 2026 selling mostly to
Europe or running tight numbers. For 6€/mo you host everything, no billing surprises.
Vercel is still brilliant. But brilliant costs money. And if you've got 200€/mo flat on Hetzner for
5 apps, that's the difference between profitable and not when you're starting.
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