Direct answer: at the Azure Retail Prices API on 9 November 2026 (eastus, USD, excluding tax/discounts), Azure VPN Gateway's monthly cost is driven mainly by the SKU: Basic $0.036/hour (about $26.28/month), VpnGw1 $0.19/hour ($138.70/month), VpnGw2 $0.49/hour ($357.70/month), VpnGw3 $1.25/hour ($912.50/month), VpnGw4 $2.10/hour ($1,533.00/month) and VpnGw5 $3.65/hour ($2,664.50/month); zone-redundant versions are $0.21/$0.54/$1.38/$2.31/$4.02 per hour. Capacity: Basic 100 Mbps, 10 S2S, 128 P2S; Gw1 650 Mbps, 30 S2S, 250 P2S; Gw2 1 Gbps, 500 P2S; Gw3 1.25 Gbps, 1,000 P2S; Gw4 5 Gbps, 5,000 P2S; Gw5 10 Gbps, 10,000 P2S. Additional S2S tunnels are $0.015/hour (about $10.95/month each), P2S connections beyond 128 are $0.01/hour (about $7.30/month each), and inter-VNet outbound Zone 1 is about $0.035/GB.

This guide is for Azure networking, SRE, hybrid-cloud and procurement teams. It explains VPN Gateway Basic/VpnGw1–5 and AZ versions, S2S/P2S included allowances, extra tunnels/connections, inter-VNet data and the Advanced Connectivity Add-On; provides gateway-only, 1TB/10TB and extra-connection TCO, plus the boundary versus ExpressRoute/Bastion. Prices come from the Azure VPN Gateway pricing page and Azure Retail Prices API (eastus, 9 November 2026); capacity/limits come from Microsoft Learn's VPN Gateway configuration docs. Official price facts, editorial calculations and exclusions are kept separate. This is not procurement advice.

Three rules to remember

(1) Check capacity/allowance first: Basic is only 100 Mbps/10 S2S/128 P2S; Gw1 650 Mbps/30 S2S/250 P2S; only Gw4/5 reach 5/10 Gbps and 100 S2S. (2) Extra tunnels/connections add cost: S2S beyond 10 is $0.015/hour each, P2S beyond 128 is $0.01/hour each; at large P2S scale, connection fees can exceed the gateway fee. (3) Inter-VNet/P2S outbound is billed as data transfer; AZ versions cost about 10–12% more but provide zone redundancy.

SKU capacity: bandwidth, S2S and P2S

Basic is the smallest: 100 Mbps, up to 10 S2S and 128 P2S, suitable for small/test. VpnGw1 650 Mbps, 30 S2S, 250 P2S; Gw2 1 Gbps, 30 S2S, 500 P2S; Gw3 1.25 Gbps, 30 S2S, 1,000 P2S; Gw4 5 Gbps, 100 S2S, 5,000 P2S; Gw5 10 Gbps, 100 S2S, 10,000 P2S. AZ versions have slightly higher bandwidth (Gw2AZ 1.25 Gbps, Gw3AZ 2.5 Gbps) and zone redundancy.

SKUBandwidthMax S2SMax P2S
Basic100 Mbps10128
VpnGw1650 Mbps30250
VpnGw21 Gbps30500
VpnGw31.25 Gbps301,000
VpnGw45 Gbps1005,000
VpnGw510 Gbps10010,000

Source: Azure VPN Gateway pricing page (9 November 2026). AZ bandwidth: Gw1AZ 650 Mbps, Gw2AZ 1.25 Gbps, Gw3AZ 2.5 Gbps, Gw4AZ 5 Gbps, Gw5AZ 10 Gbps.

Unit prices: gateway, AZ, extra tunnels/connections and data

Eastus list prices: Basic $0.036/hour; Gw1 $0.19; Gw2 $0.49; Gw3 $1.25; Gw4 $2.10; Gw5 $3.65; AZ versions $0.21/$0.54/$1.38/$2.31/$4.02. Additional S2S tunnels $0.015/hour (beyond the included 10); P2S beyond 128 $0.01/hour each; inter-VNet outbound Zone 1 $0.035/GB, Zone 2 $0.09, Zone 3 $0.16; P2S outbound at standard data-transfer rates. Advanced Connectivity Add-On $3.25/hour (optional).

ItemPrice (USD)Monthly/note
Basic$0.036/hourAbout $26.28/month
VpnGw1$0.19/hourAbout $138.70/month
VpnGw2$0.49/hourAbout $357.70/month
VpnGw3$1.25/hourAbout $912.50/month
VpnGw4 / Gw5$2.10 / $3.65 per hourAbout $1,533.00 / $2,664.50/month
AZ versions$0.21/$0.54/$1.38/$2.31/$4.02Gw1AZ–Gw5AZ
Additional S2S tunnel$0.015/hourAbout $10.95/month each
Additional P2S connection$0.01/hourAbout $7.30/month each (beyond 128)
Inter-VNet outbound$0.035/$0.09/$0.16 per GBZone 1/2/3

Sources: Azure Retail Prices API (eastus, 9 November 2026) and Azure VPN Gateway pricing page. Monthly prices use 730 hours; tax/discounts excluded.

TCO: gateway-only and AZ versions

At 730 hours/month, excluding traffic/extra connections: Basic $26.28; Gw1 $138.70; Gw2 $357.70; Gw3 $912.50; Gw4 $1,533.00; Gw5 $2,664.50. AZ versions: Gw1AZ $153.30; Gw2AZ $394.20; Gw3AZ $1,007.40; Gw4AZ $1,686.30; Gw5AZ $2,934.60. AZ versions cost about 10–12% more than the same non-AZ SKU for zone redundancy.

SKUNon-AZ monthlyAZ monthlyAZ premium
Basic26.28——
VpnGw1138.70153.30About 10.5%
VpnGw2357.70394.20About 10.2%
VpnGw3912.501,007.40About 10.4%
VpnGw41,533.001,686.30About 10.0%
VpnGw52,664.502,934.60About 10.1%

Editorial calculation: hourly fee ×730; traffic/extra connections/tax/discounts excluded; AZ/non-AZ regional availability follows official pages.

TCO: 1TB/10TB inter-VNet traffic and extra connections

At inter-VNet outbound Zone 1 $0.035/GB: 1TB (1,024GB) about $35.84; Gw1 $138.70+$35.84=$174.54; Gw3 $912.50+$35.84=$948.34; Gw5 $2,664.50+$35.84=$2,700.34. 10TB (10,240GB) about $358.40; Gw1 $497.10, Gw3 $1,270.90, Gw5 $3,022.90. Extra connections: Gw1 with 30 S2S (+20 × $10.95 = $219.00) → $357.70; Gw1 with 250 P2S (+122 × $7.30 = $890.60) → $1,029.30. At large P2S scale, connection fees can exceed the gateway fee.

Option1TB/month10TB/month
Gw1174.54497.10
Gw3948.341,270.90
Gw52,700.343,022.90
Gw1 + 30 S2S357.70 (excl. traffic)—
Gw1 + 250 P2S1,029.30 (excl. traffic)—

Editorial calculation: Zone 1 inter-VNet $0.035/GB; 1TB=1,024GB, 10TB=10,240GB; P2S outbound/public IP/tax/discounts excluded; actual data rates vary by zone/direction.

Hidden costs: seven items beyond the gateway

Common add-ons: additional S2S tunnels ($0.015/hour each beyond 10), additional P2S connections ($0.01/hour each beyond 128), inter-VNet/P2S outbound ($0.035–$0.16/GB or standard data transfer), public IP (required for the gateway, billed separately), active-active/second gateway (HA extra), AZ premium (about 10–12%), Advanced Connectivity Add-On ($3.25/hour, optional) and ExpressRoute/VNet peering (hybrid architecture extra).

Cost itemTriggerControl
Additional S2S tunnels>10Consolidate sites/use ExpressRoute
Additional P2S connections>128Plan by concurrency/users; choose a higher SKU
Inter-VNet/P2S outboundCross-region/egressSame region, compression, locality
Public IPGateway deploymentPlan/reuse
Active-active/second gatewayHAMatch RTO
AZ premiumZone redundancyMatch business tier
Advanced Add-OnHigh-bandwidth tunnelsEnable as needed

Sources: Azure VPN Gateway pricing/config docs (9 November 2026). Editorial summary; billing follows official pages and bills.

How to choose: S2S, P2S and the ExpressRoute boundary

For small/test, few sites and low bandwidth, Basic (100 Mbps/10 S2S/128 P2S); general production, Gw1 (650 Mbps/30 S2S/250 P2S); more P2S users/higher bandwidth, Gw2/Gw3; 5–10 Gbps and 100 S2S, Gw4/Gw5; zone redundancy, AZ versions. VPN fits site-to-site/remote access with low cost and fast deployment; ExpressRoute fits stable high bandwidth/low latency/SLA, but circuit/port/carrier/gateway costs are higher. Bastion is only an operations jump host, not a VPN replacement. Hybrid designs can use VPN as backup and ExpressRoute as primary.

ScenarioPreferCheck first
Test/small/low bandwidthBasic100 Mbps, 10 S2S, 128 P2S
General productionVpnGw1650 Mbps, 30 S2S, 250 P2S
More P2S/higher bandwidthGw2/Gw3P2S connection fees, bandwidth
5–10 Gbps/100 S2SGw4/Gw5Throughput, extra tunnels
Zone redundancyAZ versionsAbout 10–12% premium
Stable high bandwidth/low latency/SLAExpressRouteCircuit/port/carrier/gateway

Editorial selection framework, not a vendor recommendation; features/compliance/regional availability follow official docs and business requirements.

90-day checklist

Use the first 90 days to close “sites/users/bandwidth → SKU → gateway/connections → pilot → cutover → review.” Weeks 1-2: inventory sites, P2S users, peak bandwidth and inter-VNet traffic; weeks 2-4: choose SKU/AZ/active-active; weeks 4-6: deploy a pilot and test throughput/latency/reconnect; weeks 6-8: configure S2S/P2S, routing/NSG; weeks 8-10: cut over and monitor tunnels/connections; weeks 10-12: cost review, scale up/down. Do not buy Gw5 for a hypothetical future 10 Gbps.

FAQ

How is Azure VPN Gateway billed?

Gateway SKU hourly fee + additional S2S tunnels/P2S connections + data transfer. Basic $0.036/h, Gw1 $0.19, Gw2 $0.49, Gw3 $1.25, Gw4 $2.10, Gw5 $3.65; AZ versions $0.21–$4.02/h.

What is the difference between Basic and Gw1?

Basic 100 Mbps, 10 S2S, 128 P2S; Gw1 650 Mbps, 30 S2S, 250 P2S. Gw1 is about $138.70/month vs Basic $26.28/month.

How are extra connections billed?

S2S beyond 10 is $0.015/hour each (about $10.95/month); P2S beyond 128 is $0.01/hour each (about $7.30/month). Gw1 at 250 P2S is about $1,029.30/month excluding traffic—possibly more than the gateway fee.

How much more are AZ versions?

About 10–12%: Gw1AZ $153.30 vs Gw1 $138.70; Gw3AZ $1,007.40 vs $912.50; Gw5AZ $2,934.60 vs $2,664.50.

How is inter-VNet traffic billed?

Outbound Zone 1 $0.035/GB, Zone 2 $0.09, Zone 3 $0.16; inbound is free. 1TB is about $35.84; 10TB about $358.40.

VPN or ExpressRoute?

VPN is lower cost/faster to deploy, suited to S2S/P2S and backup; ExpressRoute offers stable high bandwidth/low latency/SLA but costs more in circuits/ports/carriers/gateways. Use VPN as backup and ExpressRoute as primary when needed.

Can Bastion replace a VPN?

No. Bastion is an operations jump host; VPN handles site-to-site/remote access. Their roles differ.

When should we use Gw4/Gw5?

When you need 5–10 Gbps, 100 S2S or large-scale P2S; Gw4 is about $1,533/month and Gw5 about $2,664.50/month, plus traffic/connections.

Research method and limitations

This article separates “official price facts” from “editorial calculations.” Basic/VpnGw1–5 and AZ gateway hourly fees, extra S2S/P2S, inter-VNet outbound and the Advanced Add-On come from the Azure VPN Gateway pricing page and Azure Retail Prices API (eastus, 9 November 2026); bandwidth/S2S/P2S allowances and AZ bandwidth come from Microsoft Learn's VPN Gateway configuration/pricing docs. TCO, hidden costs and the 90-day checklist are editorial.

Eight limitations: (1) only eastus list prices, excluding tax/discounts/enterprise agreements; (2) 730 hours/month; (3) public IP/active-active/second gateway/ExpressRoute/peering combinations are excluded; (4) data rates vary by zone/direction—scenarios use Zone 1 $0.035/GB; (5) no real throughput/latency/reconnect benchmark; (6) P2S concurrency/connection behavior depends on clients/authentication/region—benchmark; (7) the full Virtual WAN/ExpressRoute architecture is out of scope; (8) prices/features change, so recheck official pages and bills before purchase.

Sources and basis

Data cut-off 9 November 2026; prices/availability follow the Azure official page and bill; this is not procurement, commercial or legal advice.

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