Why domain renewal costs more than registration — and how not to overpay
A $2 domain can cost $30 in year two. How registrar promo pricing works and how to calculate the real 5-year cost.
How promo pricing works
Registrars sell the first year of popular zones below cost — it's marketing: a customer who has set up a domain, site and mail almost never leaves. From year two the standard rate kicks in and recoups the discount. Classic examples: .shop at $2 with a $31 renewal, .site at $2 with a $29 renewal.
Calculating the real cost
The formula is simple: registration + renewal × (years − 1). A domain for 5 years:
- Registrar A: $3 registration, $16 renewal → 3 + 16×4 = $67
- Registrar B: $10 registration, $11 renewal → 10 + 11×4 = $54
The "more expensive" registrar B is actually $13 cheaper. That's why our comparison tables put the "Renewal" column right next to "Registration".
More ways to save
- Register for multiple years upfront — you lock in the current renewal price.
- Transfer instead of renewing: a transfer costs about one renewal year at the new registrar — if yours is expensive, move.
- Watch registry price hikes: zones like .com get a few percent more expensive almost every year — multi-year registration shields you from that too.
- Beware of "free domain" hosting bundles — the gift lasts a year, then renewal is often above market.