The names sound alike, but a VPS and a VPN solve different problems. A VPS (virtual private server) is a slice of a server you rent to run websites, apps or bots. A VPN (virtual private network) is an encrypted tunnel that carries your internet traffic through another server, so websites see that server’s address instead of yours. This VPS vs VPN guide explains the difference in plain terms, when you need each one, and how the two can be combined.
What is a VPS?
A hosting company splits a powerful physical server into several virtual machines. Each one gets its own share of processor, memory and storage, its own operating system and usually its own public IP address. You control it remotely and can install whatever you like: a website, a database, a game server, automation scripts. It is the step up from shared web hosting when you need more control, and it typically costs a few dollars to a few dozen dollars a month depending on its size.
What is a VPN?
A VPN app on your phone or computer encrypts your traffic and sends it to a VPN server, which forwards it to the internet. Your internet provider and the Wi-Fi network you are on see only encrypted data going to that server, and websites see the server’s IP address. Commercial VPN services run thousands of such servers in many countries and share them among their customers. Our Proton VPN and NordVPN reviews cover two popular services.
VPS vs VPN side by side
| VPS | VPN service | |
|---|---|---|
| What it is | A rented virtual server | An encrypted connection through someone else’s servers |
| Main use | Hosting websites, apps and services | Privacy on public Wi-Fi, changing your location |
| Who manages it | You | The VPN company |
| IP address | One fixed address, used only by you | Shared with other customers, many locations |
| Skills needed | Basic server administration | Install an app and press connect |
Can a VPS be used as a VPN?
Yes. You can install VPN server software such as WireGuard or OpenVPN on a VPS and connect your devices to it. Free tools make this much easier than it used to be: Outline, from Google’s Jigsaw team, and Algo VPN set up a personal VPN server with a few commands or clicks. A self-hosted VPN is useful when you need a fixed IP address, for example to reach a company system that only allows known addresses, or when you want full control over the server.
Personal VPN on a VPS or a commercial VPN?
- Privacy: on a personal VPS, all traffic from that IP is yours, so sites can tie it to you more easily than on a server shared by thousands of people.
- Locations: one VPS is one location; a VPN service gives you many.
- Maintenance: you must keep the server updated and secure yourself.
- Streaming: data-centre IP addresses from VPS providers are often blocked by streaming services.
Which one do you need?
Choose a VPS if you want to host something: a website, an app, a bot or a small business service. Choose a VPN if you want to protect your connection or appear to be in another country. If you only need to change your location in the browser now and then, even a free VPN extension may do.
Frequently asked questions
Is a VPS safer than a VPN?
They are not directly comparable. A VPS is as safe as you keep it; a VPN is as trustworthy as the company that runs it. For everyday privacy, an audited VPN service is less work.
Do I need a VPN to use a VPS?
No. You connect to a VPS over encrypted SSH or a web control panel. A VPN is only needed if your provider or company requires it.
In short, VPS vs VPN is a question of purpose: a VPS is a server you run, a VPN is a service that hides and protects your connection. Pick by what you want to do, and remember you can always build one on top of the other.