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Yeah, that’s not how the math works. Cost of server + cost of maintaining = X. Divide X by the number of users. Example, my time is worth $60 an hour. I spend two hours a week working on the server ($120). I spend $30 a month on the server rental. $150. I have 20 users. $150/20 is $7.50…
Hmmm interesting points. Those numbers do look pretty steep for a server with only 20 users, but I can see how there's more too it than just the costs of a server. Im sure its also harder if you have a server that ends up hosting big communities but has few users.
I was curious about Beehaw after hearing about them defederating and looked to see what was over there and what their content looked like. They have a stickied post at the very top that goes over the numbers if you're curious what they're saying it costs to run that instance. I feel like numbers could be totally variable based on a number of factors but that might give you a good idea. A smaller instance might be less and a larger one with the best hardware might be more but they're probably all playing in the same general ballpark.
Yeah you could easily run a 20n user instance on a $3 or $5 server. (Hell, even a "free trial" host if you don't care about the amount of extra time that would require!)