Load balancer cost compared: AWS vs Azure vs GCP

Quick answer

All three clouds price load balancing with an hourly fee plus a capacity or data-processed charge, and in all three, layer-4 (simple TCP/UDP distribution) is cheaper than layer-7 (HTTP-aware routing, WAF, TLS). AWS has ALB (L7) and NLB (L4); Azure has Load Balancer (L4) and Application Gateway (L7); GCP has one Cloud Load Balancing with L4 and L7 options. The cheapest depends on whether you need layer-7 features, not the provider.

Load balancing is priced similarly across the three clouds: an hourly charge for the load balancer plus a charge that scales with traffic (processed bytes, or capacity units that bundle connections and throughput). The main cost decision is the same everywhere, layer-4 versus layer-7, because layer-7's HTTP-aware features cost more.

The layer-4 vs layer-7 split

Cloud	Layer-4 (cheaper)	Layer-7 (more features, more cost)
AWS	Network Load Balancer (NLB)	Application Load Balancer (ALB)
Azure	Load Balancer	Application Gateway
GCP	Cloud Load Balancing (L4)	Cloud Load Balancing (L7)

Layer-4 load balancers distribute TCP/UDP traffic simply and cheaply. Layer-7 load balancers understand HTTP, enabling path-based routing, host-based routing, TLS termination, and (on some) WAF, at higher cost. So the first cost question is whether you need layer-7 features or just distribution, the tradeoff in ALB versus NLB and Application Gateway versus Load Balancer.

The shared pricing shape

Each charges an hourly fee plus a usage component: AWS ALB uses LCUs (load balancer capacity units) that bundle connections, bandwidth, and rules; Azure Application Gateway uses capacity units; GCP charges forwarding rules and data processed. The rates are close, so the comparison is layer choice and traffic volume, not provider. Data processed scales with traffic on all three.

Choosing and optimizing

Use the load balancer on the cloud where your workload runs, choose layer-4 when you only need distribution (cheaper) and layer-7 only when you need its HTTP features, consolidate where multiple load balancers could be one (fewer hourly fees and capacity units), and cache and compress to reduce processed bytes. The layer-to-need decision and consolidation are the levers, and they apply the same across AWS, Azure, and GCP.

FAQ

Is AWS, Azure, or GCP load balancing cheapest?

They are close, since all three price load balancing with an hourly fee plus a capacity or data-processed charge, and in all three layer-4 is cheaper than layer-7. The cheapest depends on whether you need layer-7 features and your traffic volume, not the provider, so it is usually the load balancer on the cloud your workload runs on.

How does load balancer pricing compare across clouds?

Similarly: an hourly fee plus a usage component. AWS ALB uses load balancer capacity units (LCUs), Azure Application Gateway uses capacity units, and GCP charges forwarding rules plus data processed. Rates are close, so the comparison comes down to layer choice (L4 versus L7) and traffic volume rather than the provider.

Is layer-4 or layer-7 load balancing cheaper?

Layer-4 (NLB on AWS, Load Balancer on Azure, L4 on GCP) is cheaper because it simply distributes TCP/UDP traffic. Layer-7 (ALB, Application Gateway, L7) understands HTTP for path and host routing, TLS termination, and WAF, at higher cost. Choose layer-4 when you only need distribution and layer-7 only for its HTTP features.

How do I reduce load balancer cost?

Use layer-4 when you only need distribution rather than layer-7, consolidate where multiple load balancers could be one (fewer hourly fees and capacity units), cache and compress to reduce processed bytes, and use the load balancer on the cloud your workload runs on. Layer choice and consolidation are the main levers across all three clouds.

What drives load balancer cost?

The hourly fee (fixed while the load balancer exists) plus the usage component that scales with traffic, connections, bandwidth, rules, or processed bytes depending on the cloud. Layer-7 load balancers cost more than layer-4 for the same traffic. So the load balancer type and traffic volume together determine cost.

Does C3X estimate load balancer cost across clouds?

C3X prices AWS, Azure, and GCP load balancers from your Terraform, including the hourly fee, so the fixed cost appears before deploy on any cloud. The usage component (capacity units, data processed) depends on traffic, which you provide as usage assumptions.

What to do next

Compare load balancing options for your workload. C3X reads your Terraform and prices your resources against a live catalog. Start with the quickstart.