API Gateway vs ALB TCO Crossover

Identify the exact request threshold where AWS Application Load Balancer becomes drastically cheaper than API Gateway.

Affects ALB processed bytes LCU
Rule evaluations > 1000/sec add to LCU cost

API Gateway Cost

$920

ALB Cost (Base + LCU)

$40

Monthly Cost vs Traffic Volume

๐ŸŽฏ Crossover Principle: API Gateway is great for <50 RPS serverless apps. Above ~150 steady RPS, placing an ALB in front of ECS or Lambda saves 60โ€“80% in monthly ingress costs.

The LCU Math That Decides API Gateway vs ALB

An Application Load Balancer's cost isn't just its ~$16.43/month fixed charge (730 hours ร— $0.0225/hour) โ€” it's that fixed fee plus $5.84 per Load Capacity Unit (LCU) consumed, and LCU consumption is set by whichever of four independent dimensions is highest, not their sum: new connections/sec รท 25, active connections รท 3,000, processed bytes (MB/s) รท 1, and rule evaluations/sec รท 1,000. This calculator computes all four from your rps, payload size, and rule count inputs and takes the max โ€” exactly how AWS bills ALB.

Which Dimension Usually Wins

At moderate RPS with small payloads, the rule-evaluations dimension often dominates because complex routing configurations multiply avgRps ร— ruleCount before dividing by only 1,000. A service at 500 RPS evaluating 10 host/path rules per request hits 5,000 rule-evals/sec โ€” 5 LCUs from rules alone โ€” while that same traffic's connection and byte dimensions might stay under 1 LCU. Simplifying ALB listener rules can cut cost independent of raising or lowering actual traffic volume.

Why the Crossover Point Exists at All

  • API Gateway REST APIs bill a flat $3.50 per million requests with zero fixed monthly fee, which is why they win at low or spiky traffic โ€” there's no baseline charge to amortize.
  • ALB's $16.43 fixed cost means it's never free even at near-zero traffic, so API Gateway wins by default below a certain volume.
  • Above roughly 150 steady RPS, ALB typically pulls ahead by 60โ€“80%, because API Gateway's cost climbs linearly per request while ALB's LCU cost grows in discrete steps that flatten out relative to request volume.

AWS Elastic Load Balancing pricing (LCU dimensions)