The short answer
If your site is brand new or gets fewer than a few thousand visits a month, shared hosting is almost always the more cost-effective start. Once you need custom server configuration, consistent performance under load, or you are running background jobs and APIs, it's time to look at VPS.
Signs you have outgrown shared hosting
- Pages slow down noticeably during traffic spikes.
- You need a specific PHP, Node, or database version your host won't provide.
- You're running more than one resource-heavy application.
Signs shared hosting is still fine
- You're hosting a single low-traffic WordPress site or landing page.
- You don't want to manage server updates or security patches yourself.
When you're ready to compare, check our VPS hosting rankings.