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The economics of a Postgres free tier


Let's look at the numbers behind Xata's free tier. How much does a database cost us and why are we offering them for free.

While these individual builders don't always convert to paying users, they do often help by recommending us at work, by spreading the news, or simply by giving us feedback. However, in practice, free inactive databases typically don't load that much data and, at least on average, the storage cost is much smaller than that. In all of these scenarios, the ability to instantly create databases or branches through a simple API call, with minimal costs at small scale, proves to be extremely convenient.

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