When you’re starting a website, the cost of a domain name can look deceptively simple. You might find a domain for £1 and assume that’s all you’ll need to budget for, but in reality, domain costs can include the initial registration, annual renewals, different prices for different extensions, optional services and, in some cases, the cost of acquiring a domain that someone already owns. The good news is that most domain costs are predictable once you know what to look for.
However, the biggest mistake beginners make is focusing only on the price of registering a domain today. A much better approach is to consider the total cost of keeping the domain for as long as you plan to use it.
This guide explains how domain costs work, what different types of domains can cost, why some domains are worth more than others and what to budget for over the lifetime of your website.
What does a domain name cost?
There’s no single price for a domain name. The cost depends largely on the domain extension, the provider you use, whether an introductory offer applies and whether the domain is already registered by somebody else.
For a new, available domain, the price is usually made up of a registration fee for a set period, followed by a renewal fee when that period ends. For example, Fasthosts currently offers .com and .co.uk domains from £1 for the first year*, but our current standard renewal prices are £16.92 per year for .com and £12.83 per year for .co.uk, excluding VAT. Other extensions have different prices – for example, newer TLDs (which tend to be a bit more expensive) include .online at £1 for the first year and £32.09 per year afterwards, and .tech starting at £5 and renewing at £53.49 per year. This illustrates exactly why comparing domain costs requires more than looking at the first-year price.
* Offer applies to the registration of up to 2 .com or .co.uk domains only. Offer applies to new customers only. Prices exclude VAT and are subject to change. Read our full list of terms and conditions for this offer here.
Cost to consider
What it means
First-year price
The amount you pay to initially register the domain
Renewal price
The amount you pay to keep the domain after the initial registration
VAT
Tax that may be added to the advertised price
Registration period
How long the domain is registered before it needs renewing
Additional services
Hosting, email and other products you may need
Premium or existing domains
A potentially much higher price if someone already owns the domain
Why is the first-year domain price so low?
You may see domain names advertised for £1 or similarly low introductory prices. These offers are designed to make it inexpensive to register a domain initially, but they aren’t necessarily representative of the long-term cost.
For example, if you register a domain for £1 in year one and it renews at £15 a year, you haven’t bought the domain permanently for £1. You’ve paid £1 for the initial registration period and will need to pay the standard renewal price to continue using it.
Introductory offers can be useful, particularly if you’re starting a new website and want to keep your initial costs down. You just need to check what happens after the promotional period.
Some offers also have eligibility requirements or registration conditions. For example, Fasthosts’ current .com offer is limited to two domains per new customer and applies to multi-year registrations.
How much will your domain cost over five years?
Looking at the total cost over several years can give you a much better idea of the value of an introductory offer. For example, using current Fasthosts prices, a .com domain registered for £1 in the first year and renewed at £16.92 excluding VAT for the following four years would have a five-year registration cost of £68.68, assuming the renewal price remains unchanged.
Using the same method, a .co.uk domain at £1 initially and £12.83 for each of the following four years would cost £52.32 over five years (excluding VAT). However, Fasthosts offers UK domains (including .co.uk, .uk, .org.uk, .me.uk, .plc.uk and .ltd.uk) totally free for the first year for multi-year registrations, so this brings down your actual five-year cost to £51.32.
Domain
Year 1
Years 2–5
Example five-year total
.com
£1
£16.92/year
£68.68
.co.uk
Free*
£12.83/year
£51.32*
These are illustrative calculations based on current prices and assume the renewal price does not change. Prices and promotional terms can change, so always check the current price before registering.
* This is the price taking into account Fasthosts’ multi-year UK domain registration deal for new and existing customers. A .co.uk domain will otherwise cost £1 for the first year for new customers.
How much do different domain extensions cost?
In addition to renewal pricing, another one of the biggest influences on domain costs is the top-level domain (TLD), which is the part of a domain that comes after the final dot. Examples include:
Different TLDs have different pricing structures. Some are relatively inexpensive, while specialist or newer extensions can cost considerably more. However, this doesn’t mean a more expensive extension is necessarily better. The right TLD depends on what you’re building and how you want your domain to represent your business or project:
Common TLDs
.com is the most popular and widely recognised domain extension and is used by businesses and websites around the world.
.co.uk is associated with the UK and is a familiar choice for British businesses and organisations.
.org is commonly associated with non-commercial organisations, although eligibility and usage depend on the particular domain and its policies.
.net was originally associated with network-related organisations but is now used more broadly.
.photography for photographers and photography-related websites
… and many more
These can provide a more relevant and descriptive domain, but you should check both the first-year and renewal prices before choosing one, as newer TLDs are often more expensive. A unique and memorable extension is only useful if the ongoing cost fits your budget, so consider carefully what’s right for your website.
Does a more expensive domain mean it’s worth more?
Not necessarily. The price of registering a new domain is largely determined by the TLD and the pricing set for that registration. The value of the domain name itself is a separate question.
Consider two domains: ‘greenwidgets123.co.uk’ and ‘widgets.co.uk’. Even if both cost a similar amount to register when available, the second could potentially be much more valuable because it’s shorter, more memorable and uses a desirable generic term. This distinction becomes particularly important when you’re looking at domains that are already registered.
What is a premium or aftermarket domain?
Sometimes the domain name you want has already been registered by another person or organisation, but if the owner is willing to sell their domain, you may be able to acquire it for a negotiated price. These transactions can occur privately, on a domain name marketplace, on an auction site or via a domain name broker, and the process is different from simply registering an available domain through a provider.
An existing domain can be worth considerably more than its normal registration fee because you’re paying for the value of the name itself. Factors that can increase the value of an existing domain include:
Short length
Easy spelling
Memorable wording
Common dictionary words
Strong commercial relevance
Brand potential
Existing backlinks or website history
Existing traffic
Recognition within a particular industry
Some domain names have sold for very large sums, although these high-profile sales are exceptional rather than representative of what a typical beginner will encounter. For most new websites, you don’t need to buy an expensive existing domain, as there are usually many available alternatives if you’re willing to adjust the name or choose a different extension.
Does the TLD affect the value of a domain?
Yes – the same domain name can have different commercial appeal depending on its extension. A short, memorable .com may be more desirable for an international brand than a less familiar extension, while a .co.uk name may be particularly relevant to a UK-focused business.
However, it’s important to remember that there’s no universal hierarchy where one TLD is always more valuable than another. Instead, the value depends on the combination of the name, extension, audience and intended use.
For example, a UK business may get more practical value from a memorable .co.uk domain than from an obscure .com name that’s difficult to remember. Always think about the domain name as a whole rather than judging the extension in isolation.
What are the ongoing costs of owning a domain?
As established earlier, the main ongoing cost you’ll have to pay is the renewal fee – when you register a domain, you’re paying for the right to use it for a specified registration period, rather than buying it outright. To keep using it afterwards, you need to renew your domain, usually on a yearly basis.
However, other factors are also important to consider when it comes to budgeting your yearly costs, such as related web services you may need alongside your domain:
Service
What it’s used for
Domain registration
Secures your chosen web address
Domain renewal
Keeps the domain registered after the initial period
Web hosting
Stores the website and makes it accessible online
Email
Lets you send and receive messages using your domain
Website builder
Helps you create a website without building one from scratch
Hosting for WordPress
Provides hosting designed for WordPress websites
You don’t necessarily need every additional service listed here. If you’re only reserving a domain for future use, you may only need the domain itself. However, if you’re launching a new business website, for example, then you’ll probably need web hosting, professional email and maybe a website builder package too.
What’s the difference between domain cost and website cost?
Your domain and your website are two different things. Think of your domain as your website’s unique address – it tells people where to find you. Your hosting is the space where the website itself is stored. For example, ‘yourbusiness.co.uk’ could be your domain, while the website hosted behind that address could be a WordPress site, an ecommerce store or a website built using another platform.
This means a £1 domain doesn’t mean you can build and run a complete website for £1, as you’ll need to factor in your website hosting and building costs. Therefore, if you’re planning a new website, always budget separately for the domain, hosting, email and any other services you actually need.
Although the exact expiry and recovery process depends on the TLD and its registry rules, your domain can eventually expire if you don’t renew it. The consequences can be significant if the domain is being used for a live website or email, as your website may stop resolving correctly and email addresses using the domain can be affected too.
For an important business domain, automatic renewal can help reduce the risk of accidentally losing it. Many domain and hosting providers offer an auto-renewal service – for Fasthosts domains, you simply need to go to the Hosting & Domains section of your control panel to toggle this setting on or off for each of your owned domain names. It’s also good practice to make sure your payment details are up to date and that you still have access to the account managing the domain.
Can you transfer a domain if renewal becomes too expensive?
If you decide another provider offers a better price or service, you may be able to transfer your domain rather than registering a completely new one. However, transferring a domain doesn’t automatically transfer your website. Your website hosting, files, databases and email services may be separate from the domain registration, so always plan the move carefully before changing anything that could affect your website or email.
How to keep your domain costs under control
As demonstrated throughout this article, you don’t need to spend a lot of money managing domains – but you do need to keep an eye on factors like renewal pricing and add-on services if you want to avoid surprises later on. A few simple checks can prevent unexpected domain costs:
1. Compare renewal prices
Don’t choose a provider based solely on the introductory price. Check what you’ll pay after the first year, as there will most likely be a noticeable increase.
2. Choose the TLD carefully
A .com might make sense for an international business, whereas .co.uk could be more appropriate for a UK-focused company. Specialist and newer TLDs can be useful, but check their renewal prices first as they tend to be more expensive.
You don’t need to register every variation of your domain. Prioritise the extensions that are genuinely useful for your brand and audience.
4. Check the basket before paying
Look for VAT, additional products and any services you don’t actually need.
5. Turn on automatic renewal for important domains
If losing the domain would disrupt your website or email, automatic renewal can help prevent an accidental expiry.
6. Keep track of your domains
If you own multiple domains, record their renewal dates and costs. This makes annual budgeting much easier.
How much should a beginner budget for a domain?
For a straightforward website, the domain itself doesn’t usually need to be a major expense. A beginner could start by looking at established extensions such as .com, .co.uk or .org and comparing the first-year and renewal prices. For example, current Fasthosts introductory pricing starts at just £1* for several common extensions – including the ones mentioned above – although standard renewal costs vary significantly between TLDs.
The bigger financial decision is often what you build around the domain. For instance, if you’re launching a website, you’ll need to consider hosting, email and any website-building tools alongside the domain. Therefore, the best approach is to think in terms of your total annual online presence rather than trying to find the absolute cheapest domain and not considering renewal costs and the costs of additional services you need.
If you’re deciding whether to spend more on a domain, consider its practical value to your project. A domain may be worth paying more for if it’s:
Easy to remember
Short and simple to spell
Contains a relevant keyword
Closely matched to your brand
Relevant to your industry
Suitable for your target market
Flexible enough to support future growth
However, don’t assume that an expensive domain is automatically a better domain. A memorable, relevant name that costs a standard registration fee can be more useful than an expensive name that doesn’t fit your business.
Plan your domain costs before you register
The simplest way to avoid surprises is to look beyond the first-year price. In summary, always ask yourself the following questions before you register a domain to get a much clearer idea of your actual domain costs:
Which TLD is right for your audience?
What is the first-year price?
What is the standard renewal price?
Is VAT included?
Are there conditions attached to the introductory offer?
Will you need hosting or email as well?
How much would the domain cost over five years?
Is the domain available to register, or would you need to buy it from its current owner?
Ready to find a domain? Search available domain names with Fasthosts and compare current registration and renewal prices for your preferred extensions. We offer a huge range of domain extensions – from old favourites like .com, .org and .co.uk to new and specialised options like .tech, .bar and .agency – helping you find the perfect domain no matter what your web project’s about.
Frequently asked questions
How much does a domain name cost?
Domain costs vary depending on the TLD, provider, introductory offer and renewal price. Some domains can be registered for around £1 in the first year, whereas specialist extensions can cost considerably more because they often target high-income niche markets. Plus, existing domains that are already owned can cost much more if the owner wants to sell them.
Do domain costs include VAT?
Not always. Some advertised prices are displayed excluding VAT, particularly on business-focused websites. If you’re a UK consumer, the amount you ultimately pay may therefore be higher than the headline price. For example, a domain renewal price of £16.92 excluding VAT would be £20.30 including VAT at the current 20% VAT rate. Always check whether VAT is included before comparing prices between providers.
What is the cheapest type of domain?
There isn’t one universally cheapest TLD because prices and promotions vary. Common extensions such as .com and .co.uk can be available from low introductory prices, while some newer or specialist extensions have much higher standard prices.
Why do domains cost more after the first year?
Many providers offer introductory prices to encourage new registrations. Once the introductory period ends, the domain normally renews at its standard price. Always check the renewal cost before registering.
How much does it cost to renew a domain?
The renewal price depends on the TLD and provider. For example, current Fasthosts renewal pricing is £16.92 per year for .com and £12.83 per year for .co.uk, excluding VAT. Other TLDs have different renewal prices, which are all clearly displayed on our site.
Can domain renewal prices change?
Yes – domain pricing can change over time, as costs can be affected by fluctuations in registry pricing, provider pricing, promotions and other commercial factors. This is yet another reason not to judge a domain based entirely on its first-year price. If you manage several domains, keep a record of their renewal dates and costs so that you can budget for them.
Is a domain a one-off purchase?
Usually not. You generally register a domain for a specific period and need to renew it to continue using it. The renewal price is therefore an important part of your long-term domain costs.
Does a domain name include a website?
No, a domain is your website’s address. You normally need separate web hosting, a website builder or another platform to create and host the website.
Do I need to pay for hosting as well as a domain?
If you want to run a website, you’ll generally need somewhere to host it. However, you can register a domain without buying hosting immediately and add hosting later. Alternatively, many hosting providers – like Fasthosts – will bundle free domains with their web hosting packages for the first year, so you can pay for them together if you choose one of these deals (although the services themselves remain separate).
Can a domain name be worth thousands of pounds?
Yes – an existing domain can be worth significantly more than its standard registration cost if it’s short, memorable, commercially valuable or has other desirable characteristics. The price of an existing domain is determined by the market between the buyer and owner.
What is a premium domain?
A premium domain is generally a domain that commands a higher price because of its perceived value. Depending on the TLD, premium pricing can apply to certain names at registration or an existing domain may be sold by its current owner for a higher price.
Is .com more expensive than .co.uk?
It depends on the provider and current pricing, but in general, .com domains are usually slightly more expensive due to their global demand. At Fasthosts, .com currently renews at £16.92 per year and .co.uk currently renews at £12.83 per year, excluding VAT. However, both currently have introductory pricing from £1 for the first year for new customers when you register up to 2 domains.
What happens if I forget to renew my domain?
An expired domain can stop working, which may affect your website and email. If it remains unrenewed, it can eventually be released and potentially registered by somebody else. However, the exact process depends on the TLD and its applicable rules.
Can I transfer my domain to another provider?
In many cases, yes. Domain transfers are subject to the rules for the particular TLD and the registration’s circumstances. Transferring your domain does not automatically move your website or email services.
Should I buy more than one domain extension?
You don’t necessarily need to. If your brand is important, registering multiple relevant extensions can help protect your name and give you flexibility. However, consider the ongoing renewal costs before registering domains you may never use.
How can I reduce my domain costs?
Compare renewal prices rather than just introductory offers, choose a TLD that suits your needs, avoid buying unnecessary extensions and check your basket for additional services. For multiple domains, keeping a record of renewal dates and costs can also make budgeting easier.
