Cloud VPC Pricing in India: Public IP, NAT, Peering and Hidden Network Costs

September 1, 2026

15 min read

Quick Answer: Creating a VPC or virtual network is often free or inexpensive. The larger costs usually come from what the network connects: public IPv4 addresses, NAT gateways, VPC peering, cross-zone traffic, VPNs and internet egress. For Indian cloud buyers, VPC cost should therefore be calculated from the complete traffic path rather than the price of the virtual network itself.

A VPC can look almost free on an architecture diagram.

Create the network. Add a few private subnets. Place application servers in one subnet and databases in another.

Then production traffic starts moving.

Public IP addresses get attached. Private servers need NAT. Applications communicate across Availability Zones. VPCs are peered together. Traffic eventually leaves for the internet.

Each of those paths can introduce another billing meter.

That is why cloud networking costs are often harder to predict than compute costs.

For a broader view of charges that can sit outside the advertised VM price, see the Cloud Pricing Hidden Costs in India guide.

Pricing note: Public pricing and product information in this article were checked on 1 September 2026. Rates can vary by region, account, currency and configuration. USD prices are kept in USD rather than converted to INR because exchange rates change over time.

VPC Pricing at a Glance

The VPC itself is usually not the expensive component.

Cost Area	Typical Pricing Model	What Creates the Bill
VPC / Virtual Network	Often free	Usually no direct network creation fee
Public IPv4	Per IP per hour or month	Number of public addresses
NAT Gateway	Per hour + data processed	Private-to-internet traffic
VPC / VNet Peering	Per GB	Traffic between networks
Cross-zone traffic	Per GB	Resources communicating across zones
VPN Gateway	Per gateway/hour	Hybrid or remote connectivity
Internet egress	Per GB	Data leaving the cloud
Load Balancer	Hourly + traffic/capacity	Application traffic distribution

The important question is therefore not:

How much does the VPC cost?

It is:

What path does each major traffic flow take, and which services meter that path?

The VPC Itself Is Usually the Cheap Part

AWS does not charge an additional fee simply for creating and using an Amazon VPC. Charges instead come from components such as NAT gateways, public IPv4 addresses, VPC peering, traffic analysis and other networking services.

Azure follows a similar model.

Microsoft states that an Azure Virtual Network itself is free, and each subscription can create up to 1,000 virtual networks. Charges start appearing when services such as peering, gateways and network appliances are added.

Google Cloud also places much of the cost on traffic movement rather than the basic VPC construct.

For example, Google Cloud charges no data-transfer fee when VMs communicate using internal IP addresses in the same zone within the same VPC network.

Move that traffic between zones in the same region and the situation changes.

Google currently charges:

$0.01/GiB

for VM-to-VM data transfer between different zones in the same region under applicable VPC scenarios.

This is the first important VPC pricing rule:

The network object may be free. The paths connecting resources may not be.

Public IPv4 Addresses Now Need Their Own Budget

Public IPv4 addresses used to be easy to overlook.

That is becoming increasingly expensive.

AWS Public IPv4 Pricing

AWS charges:

$0.005 per public IPv4 address per hour

The same rate applies whether an eligible public IPv4 address is actively attached to a resource or sitting idle in the account.

Using a 730-hour month:

1 public IPv4 ≈ $3.65/month

For 100 addresses:

100 × $0.005 × 730 ≈ $365/month

That cost exists before those resources send any meaningful traffic.

For architectures with many internet-facing VMs, the number of public IPs can therefore become a noticeable line item.

Google Cloud Public IPv4 Pricing

Google Cloud currently charges:

$0.005/hour

for static or ephemeral external IPv4 addresses in use on standard VM instances.

Public NAT also has a separate $0.005/hour per external IP component.

Google does not charge for external IPv6 addresses assigned to supported VM or subnet configurations, which is another reason infrastructure teams should evaluate where IPv6 can reduce dependence on public IPv4.

Azure Public IP Pricing

Azure also charges for public IPv4 addresses based on SKU and configuration.

Microsoft retired the Basic Public IP SKU in September 2025 and moved customers toward Standard Public IP addresses. Legacy Basic IPv4 pricing was aligned with Standard pricing from March 2026.

The exact bill should be checked against the current Azure region and SKU before deployment.

Indian Provider Example: AceCloud

AceCloud currently lists a standalone Public IP in Noida at:

₹0.230/hour
₹166/month

However, there is an important distinction.

AceCloud’s main compute pricing states that one public IP address is included with GPU and non-GPU instances.

The ₹166/month Public IP listing is therefore relevant when an additional or standalone network resource is required rather than assuming every VM automatically adds that charge.

Public IP pricing is one reason to avoid exposing every server directly to the internet.

NAT Gateways Are Where Private Networking Can Become Expensive

Private subnets are generally a better security model for application and database servers.

But private resources still need to reach:

Package repositories
Software update servers
External APIs
Container registries
SaaS services
Public endpoints

That outbound traffic often passes through a NAT gateway.

NAT pricing normally combines:

Gateway time + data processed + possible public IP cost + internet egress

Azure NAT Gateway Pricing

Azure NAT Gateway currently uses two main charges:

$0.045 per resource hour
$0.045 per GB processed

Bandwidth charges can apply separately.

Using Microsoft’s common 720-hour monthly assumption:

Gateway:

$0.045 × 720 = $32.40

If the gateway processes 1,000 GB:

Data processing:

1,000 × $0.045 = $45

Simplified NAT cost:

$32.40 + $45 = $77.40/month

That is before applicable internet bandwidth charges.

Microsoft also notes that NAT Gateway billing starts when the resource is created, even if no subnet or public IP is currently attached.

Google Cloud Public NAT Pricing

Google Cloud Public NAT takes another approach.

For up to 32 assigned VMs:

$0.0014 per VM per hour

Above 32 VMs, the gateway charge is capped at:

$0.044/hour

Google then adds:

$0.045/GiB processed
$0.005/hour for each external NAT IP
Applicable internet data-transfer charges

This means the NAT gateway itself is only one part of the calculation.

For example, a busy application can pay for:

NAT instance usage + NAT processing + NAT public IP + internet egress

AWS NAT Gateway Pricing

AWS follows the same broad pattern:

NAT Gateway hours + data processed + applicable data transfer

AWS also recommends keeping workloads and their NAT gateway in the same Availability Zone where practical.

If an EC2 instance communicates with a NAT gateway located in another Availability Zone, the architecture can introduce additional inter-AZ data-transfer charges.

One way to reduce NAT processing for high-volume AWS service traffic is to use supported VPC endpoints instead of sending that traffic through a NAT gateway.

For example, AWS documents that gateway endpoints for services such as S3 can avoid NAT gateway processing for that path.

The key lesson is simple:

A private subnet is not automatically a cheap subnet.

You need to know how its outbound traffic reaches its destination.

VPC Peering Is Private, but Traffic Can Still Be Charged

VPC peering allows two isolated networks to communicate using private addresses.

That improves security and simplifies network segmentation.

It does not necessarily make the traffic free.

AWS VPC Peering

AWS charges for data sent over VPC peering connections when the traffic crosses Availability Zones within the same region.

The published rate is:

$0.01/GB inbound
$0.01/GB outbound

Consider roughly 10,000 GB of one-way traffic crossing zones through a peering relationship.

The simplified transfer cost becomes:

10,000 × $0.01 outgoing = $100

plus:

10,000 × $0.01 incoming = $100

Total:

≈ $200

That is before considering any other service in the traffic path.

Azure VNet Peering

Azure applies a similar model to same-region VNet peering.

The commonly published regional VNet peering rates are:

$0.01/GB inbound
$0.01/GB outbound

Microsoft also states that peering traffic is charged at both ends of the connected virtual networks.

Using the same 10,000 GB example:

Approximate peering charge ≈ $200

For buyers comparing AWS and Azure more broadly, the AWS vs Azure comparison covers their wider pricing, India availability and infrastructure positioning.

Google Cloud Takes a Zone-Based Approach

Google Cloud networking works somewhat differently.

Internal IPv4 traffic between VMs in the same zone within the same VPC network has no charge.

Traffic between different zones in the same region is currently:

$0.01/GiB

under applicable VM-to-VM scenarios.

Importantly, this can apply whether the resources are in:

The same subnet
Different subnets
Different zones within the same VPC network

Network organisation does not remove the physical and billing impact of moving traffic between zones.

You can compare the broader hyperscaler positioning in the AWS vs Google Cloud comparison.

Cross-Zone Traffic Can Matter More Than Internet Egress

Internet egress gets most of the attention when teams discuss cloud networking costs.

East-west traffic deserves similar attention.

East-west traffic is communication between resources inside the infrastructure, such as:

Application server → database
Kubernetes node → Kubernetes node
Microservice → microservice
GPU worker → storage
Analytics worker → database
Application VPC → database VPC
Load balancer → backend
NAT gateway → workload

A distributed application can move several times more data internally than it sends to end users.

This becomes especially important for:

Kubernetes
AI clusters
Distributed databases
Microservices
Analytics pipelines
High-throughput SaaS applications
Multi-zone architectures

Suppose an application receives 1 TB from users but generates another 8 TB of service-to-service traffic internally.

A pricing model based only on internet egress will miss most of the network movement.

That is why network topology should be included in cloud TCO calculations.

Indian Cloud Providers Use Different Network Pricing Models

Indian providers do not always copy hyperscaler VPC pricing structures.

Some use fixed INR rates for individual network resources, while others include certain network capabilities with the compute or platform service.

That can make budgeting simpler, although it does not automatically mean the provider will be cheaper for every workload.

AceCloud VPC and Private Networking

There are several separate networking concepts in AceCloud’s current pricing.

The AceCloud VPC service lists:

VPC setup: Free
Data transfer within VPC: Free
VPC peering: Included

Usage-based components can include:

NAT Gateway
Floating IP
VPN connectivity
Bandwidth or traffic usage
Load balancer
Firewall services

Separately, AceCloud lists its Private Network product in Noida at:

₹1.380/hour
₹996/month

It also lists:

Standalone Public IP: ₹166/month

and states on its main cloud pricing page that one public IP is included with GPU and non-GPU compute instances.

These different products should not be treated as the same charge.

The VPC is the overall isolated networking environment. The Private Network listing is a separate network resource.

E2E Networks VPC Pricing

E2E Networks uses another model in its TIR platform.

Its current networking documentation lists:

VPC Connect: No additional TIR charge

Security Groups: No charge

Reserved IP: ₹199/month

A reserved IP continues to be billed even when it is not attached to an instance.

E2E also notes that the underlying MyAccount VPC is billed according to its own VPC plan.

This is a good example of why a pricing comparison needs to identify which layer is free.

The TIR connection to the VPC may be free while the underlying VPC itself has its own billing model.

VPC Cost Is Really Topology Cost

The most useful way to think about VPC pricing is as topology pricing.

Consider this traffic path:

Private VM → NAT Gateway → Internet

Possible charges:

NAT gateway hourly fee
NAT data processing
NAT public IP
Internet egress

Now consider:

Application VPC → Peering → Database VPC

Possible charges:

Peering traffic
Cross-zone traffic
Regional transfer

Or:

Private application → NAT in another zone → external API

Possible charges can stack further if the architecture crosses zones before leaving for the internet.

This means two identical VMs can produce very different monthly bills depending on where they are placed and how their traffic is routed.

A cheap VM connected through an expensive traffic path is not necessarily cheap infrastructure.

Example: Public IPs vs NAT Gateway

Consider 100 application servers that require outbound internet connectivity.

Option A: Give Every Server an AWS Public IPv4 Address

100 addresses × $0.005/hour × 730 hours

≈ $365/month

This represents only the IPv4 charge.

Option B: Keep Servers Private Behind NAT

The public IPv4 count can fall substantially.

However, the architecture now introduces:

NAT Gateway hourly charges
NAT data processing
NAT public IP
Possible inter-AZ transfer
Internet egress

Whether NAT is cheaper therefore depends on:

Number of servers
Amount of outbound traffic
Number of Availability Zones
Number of NAT gateways
Destination of the traffic

The security architecture should not be selected purely on price, but the cost difference should still be modelled.

How to Estimate VPC Networking Cost

Before deploying a production environment, map the major traffic flows.

For each one, record:

Question	Why It Matters
Where does the traffic start?	Identifies the billable source
Where does it end?	Determines whether it leaves a zone, region or cloud
Does it use a public IP?	IPv4 charges may apply
Does it pass through NAT?	Hourly and processing charges may apply
Does it cross an Availability Zone?	Inter-zone charges may apply
Does it cross a VPC/VNet?	Peering charges may apply
Does it leave the cloud?	Internet egress may apply
Does it pass through a load balancer?	Additional processing charges may apply
Does it use VPN or private connectivity?	Gateway charges may apply
Is the traffic bidirectional?	Both directions may be metered

Then estimate:

Public IPs + NAT + peering + cross-zone traffic + VPN/private connectivity + load balancing + internet egress

Do not calculate networking as one generic “bandwidth” line item.

Ways to Reduce VPC Networking Costs

The right architecture depends on security and reliability requirements, but several patterns are worth evaluating.

Keep NAT and workloads aligned by zone

On AWS, placing workloads and NAT gateways in different Availability Zones can create unnecessary cross-zone traffic.

Use private service endpoints where appropriate

If large amounts of traffic go from private workloads to supported cloud services, a private or gateway endpoint may avoid sending that traffic through NAT.

Remove unused public IPv4 addresses

Public IPv4 addresses can continue generating charges even when they are not producing application value.

Review peering topology

A large mesh of peer-to-peer VPC connections can become difficult to manage and expensive as east-west traffic increases.

Measure internal traffic

Do not monitor only internet egress.

Track traffic:

Between zones
Between VPCs
Through NAT
Between applications and databases
Between Kubernetes nodes
Between compute and storage

Consider IPv6 where practical

IPv6 can reduce dependence on scarce public IPv4 addresses, although application, security and provider compatibility still need to be verified.

Cost optimisation should not weaken network isolation or availability. It should remove unnecessary traffic paths and duplicated network resources.

VPC Pricing Checklist for Indian Cloud Buyers

Before choosing a provider, check:

Is creating the VPC or virtual network free?
Is private intra-VPC traffic free?
Is same-zone traffic free?
What does cross-zone traffic cost?
What does same-region peering cost?
What does cross-region traffic cost?
Are public IPv4 addresses included?
What does an additional public IP cost?
Is an idle IP still charged?
What is the NAT Gateway hourly charge?
What does NAT processing cost per GB?
Does NAT traffic also incur egress?
Is the NAT gateway in the same zone as the workload?
Are private endpoints available?
What do VPN gateways cost?
Are security groups or firewall rules free?
Are load balancers separate?
Is billing in INR or USD?
Is GST included or added later?
Can network usage be viewed by traffic path?

For the broader provider evaluation process, use the Cloud Provider Selection Checklist for India.

If the provider bills in USD, also include currency and tax treatment using the INR vs USD Cloud Billing Guide.

FAQs

Is creating a VPC free?

Often, yes. AWS does not charge an additional fee simply for using a VPC, while Azure states that Virtual Networks themselves are free. Charges usually come from resources and traffic associated with the network, such as NAT gateways, public IPs, peering, VPNs and data transfer.

How much does an AWS public IPv4 address cost?

AWS currently charges $0.005 per public IPv4 address per hour for eligible in-use and idle addresses. At 730 hours, one address costs about $3.65 per month before other networking charges.

Why are NAT gateways expensive?

NAT gateways often combine a fixed hourly charge with per-GB data-processing charges. Public IP and internet egress costs can also apply, and cross-zone architectures can introduce additional transfer costs.

Is VPC peering free?

Not always. AWS and Azure can charge for traffic transferred through peering relationships. Google Cloud also charges for applicable traffic that crosses zones or regions even when private networking is used.

Is traffic inside a VPC free?

It depends on the provider and topology. Same-zone internal traffic can be free in some clouds, while traffic crossing Availability Zones, regions or peered networks may be charged.

Is a private subnet cheaper than a public subnet?

Not automatically. Private subnets can reduce direct public-IP exposure, but outbound internet traffic may require NAT gateways or other network services. The final cost depends on traffic volume and architecture.

Which cloud has the cheapest VPC networking in India?

There is no universal cheapest provider. The answer changes with public IP requirements, NAT usage, east-west traffic, number of zones, internet egress and whether the provider uses usage-based or fixed INR pricing. Model your traffic topology before comparing the final cost.

Final Takeaway

A VPC is often one of the least expensive parts of a cloud network.

The traffic around it is where costs accumulate.

Before comparing cloud providers, model:

Public IPs + NAT + peering + cross-zone traffic + private connectivity + load balancing + internet egress

For distributed workloads, pay particular attention to east-west traffic between applications, databases, Kubernetes nodes, storage systems and AI infrastructure.

The most useful question is not:

“How much does the VPC cost?”

It is:

“How much does it cost for our packets to follow the architecture we designed?”

Use the getInfra.cloud provider comparison hub to compare wider provider pricing and infrastructure differences, then verify the exact networking rates for your planned region and traffic path before deployment.

Sources and Pricing References

Pricing and product details in this article were checked against official provider documentation on 1 September 2026:

Provider pricing, billing rules and available network services can change. Verify the current official pricing for your target region before making a production purchasing decision.