The AI Cloud Engineers

The AI Cloud Engineers

API Gateway: Why Your Serverless API Costs More Than an ALB at Scale

REST vs. HTTP APIs vs. ALB. A real-world cost breakdown.

Lefteris Karageorgiou's avatar
Lefteris Karageorgiou
Jun 24, 2026
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Hey, it’s Lefteris 👋 I’m the voice behind the weekly newsletter “The Cloud Engineers.”

You went serverless. API Gateway in front of Lambda, clean architecture, no servers to manage. It felt great at 10,000 requests a day. Then your product grew, and now you’re staring at a $2,000/month API Gateway bill wondering what happened.

Here’s the uncomfortable truth: API Gateway’s pricing model has a scaling cliff that nobody talks about during the honeymoon phase.

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The Math That Changes Everything

API Gateway REST APIs charge $3.50 per million requests (after the first 333 million/month, it drops slightly). Sounds cheap in isolation. Let’s do the math for a moderately successful API:

  • 50 million requests/month

  • API Gateway cost: ~$175/month

Now the same traffic through an Application Load Balancer:

  • ALB fixed cost: ~$22/month (base + LCUs)

  • Per-request component: negligible at this scale

That’s already an 8x…

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