A domain is your online address. It’s where your brand and virtual store live and one of the main places your audience can find you. So, how much should you pay for this valuable digital real estate?
Some domain names cost thousands of dollars, while others are free. Learn which factors influence domain pricing and what to consider when registering your domain name.
How much do domain names cost?
On average, you can expect to pay between $10 and $20 per year to register and own a domain name. But that’s an average, and you may need to pay more to renew your domain registration for future years.
Just as real estate prices vary based on desirability, popularity can increase the cost of a domain name from a few dollars to a few thousand.
Domain registrars ensure your domain remains online and associated with the correct IP address—that’s what you’re paying for when you register with one.
What about free domains?
Some platforms, such as Shopify, offer free subdomains—web addresses that act like branches of their primary domain. For example, Shopify stores receive the subdomain “www.[storename].myshopify.com.”
Free subdomains let you start your website on a budget. They’re great for building and testing ideas in the early stages of business.
Once you’ve established your site, consider a domain that clearly identifies your business name or brand. That’s why most Shopify merchants eventually choose their own domain names.
How much should you pay for a domain?
The answer to this question is relative. A free subdomain is great for new businesses and personal sites, while a basic, competitively priced domain of less than $50 will suit the needs of most brands and website owners.
If most of your website traffic comes from search engines or visitors typing in your address, spending more on a desirable name may be prudent.
A domain name that indicates your website’s focus (like “www.plumbingadvice.com” for a plumbing tips site) can improve your site’s search engine ranking for related keywords (such as “how to unclog a kitchen sink”).
For businesses with strong brand reputations, paying for a domain name that matches their brand name is a smart investment. An exact-match domain makes a website easier to find and enhances brand trust. For example, American Blue Jeans could decide to buy “www.americanbluejeans.com”—even at a high price, it confers brand visibility and credibility.
Domain prices from popular registrars
As of spring 2025, here’s what the most popular domain sellers charge to register the example domain name “bakehacks.com” for a fictional baking business.
The example uses .com because it is the most common and trusted top-level domain (TLD). Prices for alternate domain extensions—TLDs like .ca, .co.uk, or .recipes—vary significantly.
Hover
It costs $18.99 to register “bakehacks.com” with popular domain registrar Hover, with significant savings on alternate TLDs. For example, “bakehacks.store” costs an additional $2.99 for your first year.
GoDaddy
Registering “bakehacks.com” at GoDaddy, one of the largest domain registrars in the world, costs around $22.17 per year, with a significant first-year discount.
Namecheap
Foraround $14.98 per year, including a small first-year discount, you can register “bakehacks.com” at Namecheap, a registrar known for its affordable prices.
Bluehost
Registering“bakehacks.com” at Bluehost, a web hosting company that also offers domain registration, starts around $12.99 annually.
Shopify
Buying the domain name “bakehacks.com” directly in Shopify would cost around $16 annually.
Remember, these are sample prices. The price of your desired domain is influenced by its length, TLD, popularity, and add-ons such as domain privacy protection.
What affects domain pricing?
Here’s a closer look at factors influencing domain name costs:
Domain extension (TLD)
The letters appended to your domain name are called the top-level domain (TLD), and they affect pricing. A .com or .org TLD typically costs more than a niche extension like .tv or .io.
While .com is the go-to for most businesses, country code TLDs such as .ca or .co.uk can be desirable. Online stores with international customers often purchase a variety of regional TLDs to serve clients in multiple locations.
Domain length and popularity
Popular and memorable domain names have higher price tags. The domain name cars.com is likely more expensive than bestusedcars.com, which probably costs more than bestusedtoyotas.com.
Availability
If the domain you want is already owned by someone else, you may still be able to buy it—but you’ll probably have to pay more. Desirable names with multiple potential buyers may sell via auctions where the highest bidder wins.
It’s also possible to pick up an expired domain name if its previous owner doesn’t renew. Expired domains typically have a history you’ll need to investigate before buying.
Where you purchase the domain
Every domain registrar has its own pricing system, though they all try to remain competitive. It’s worth looking at various registrars and price-shopping,” says independent UX/UI designer Dave Smyth.
The simplest way to reduce your domain setup expenses is to choose a registrar with an introductory offer for new customers. If you already have an account with that registrar, you may not be eligible for the discount.
That said, consider ongoing costs before jumping at the first introductory offer. You could pay more for the domain in the long run if its renewal prices are higher than other registrars. Get rough long-term estimates from different registrars before committing.
Other associated costs
The upfront cost to register your domain name is just one of the fees you’ll pay. Most registrars add administrative charges to cover connecting your domain with an IP address and listing it in the domain name system (DNS).
There are other hidden costs to consider:
- Premium domains: A premium domain is one whose owner lists it for a high resale fee. They cost significantly more than standard domains because they tend to be shorter, more specific, and more memorable. For example, the most expensive domain in history, cars.com, sold for $872 million in 2014.
- Privacy protection: Most registrars offer to hide your personal information from the WHOIS database, a publicly accessible system that lets anyone find the name, owner, and address of a domain owner. You can often pay an additional fee to replace your data with the registrar’s.
- Bulk purchases: Domain registrars may offer discounts for buying multiple domain names simultaneously. This is useful if you want to own different TLD options (e.g., .com and .co.uk).
- Domain extensions: Some registrars charge additional fees to register a subdomain. For example, you might have to pay a separate domain registration fee to use the “help” subdomain.
- Contract length: You don’t technically “own” a domain—you lease it from the registrar. The longer you lock in and commit to the contract, the more money you can shave off the domain’s price.
- Additional services: Email, web hosting plans, SSL certificates—these are services offered by domain registrars that they upsell at checkout. Get clear on what you do (and don’t) need before adding extra services to your cart and inflating the cost of your domain.
How to get a premium domain for a good price
Getting a good deal on a domain name is reasonably straightforward. The key is to research domain name providers.
Shop around
Prices for the same domain name can vary across providers, so compare prices to secure the best deal. Look closely at sales and promotional offers. Some registrars offer deep discounts for new customers.
Avoid unnecessarily expensive domains
There’s no need to purchase an expensive domain if you don’t need one. As long as your domain address represents your brand, is memorable, and is easy to spell, you’re good to go.
If you believe a premium domain name is necessary for branding or marketing purposes, allocate funds for it in your marketing budget. Remember, you can probably deduct a portion of the cost as a business expense.
Think beyond .com
Exploring less popular domain extensions can help you secure a popular domain name at a lower price. For instance, a .io domain could be a good fit for a tech company, while .green makes sense for an environmentally focused business. Less common top-level domains like these are often cheaper than a .com domain.
Many new TLDs have emerged recently, offering variety and more opportunities to land a short and simple address. For example:
- .shop or .store for ecommerce websites
- .app domains should appeal to developers
- .blog is perfect for writers
- .nyc or .london go beyond country code TLDs to make your business hyper-local
Consider the renewal price
When you register a domain name, you rent it for a certain period. When that time is up, you’ll need to renew your registration to keep your domain.
Many domain registration services offer discounts for registering a domain for multiple years. If you’re confident in your choice, this can save you money while securing your domain name for longer. Just remember to turn on auto renewal so the domain stays under your control.
Consider domain auctions
Domain auctions are platforms for buying and selling currently owned domain names. They can be a great place to find unique and valuable domains.
However, bidding in a domain auction is often competitive, and prices can quickly escalate. If you’re considering buying a domain from an auction, set a budget and stick to it.
You can also negotiate privately for an owned domain. Domain broker services, available through many registrars, can handle negotiations for you. They’ll help uncover the domain owner, suggest a reasonable offer, and assist you during domain migration.
Don’t overpay for your domain name
Buying a domain is an essential step in building an online presence. Domain costs vary, so understanding what influences them and how to get the best deal will help you make the right choice.
Remember, you don’t always need to pay extra for the perfect web address at first. You can often save hundreds by opting for a variation on a premium domain name.
Read more
- How To Choose the Best Domain Name in 2024 (7 Tips & Tools)
- How to Buy a Domain Name- Domain Registration Guide
- How To Register a Domain Name in 5 Simple Steps
- Domain SEO Explained- Choosing an SEO Friendly Domain Name
- What Is a Domain and How Do Domain Names Work?
- What Is a TLD? Top-Level Domains Definition and Guide
- What Is a ccTLD? Definition and Examples of ccTLDs
- What Is Web Hosting? Web Hosting Definition and Guide
- How Much Does Website Hosting Cost?
- Website Builder & Website Maker by Shopify
Domain price FAQ
What is a domain name?
The domain name system provides text-based addresses for websites. These easily understandable addresses help web users find content online.
Can I buy a domain name forever?
Most domain names are renewed annually, but you can register a domain for up to 10 years in advance.
Are all domain extensions the same price?
The price of a domain varies depending on its extension. Domains with a .com extension are usually more expensive than less popular extensions, such as .shop or .info.
Can I get a domain name for free?
Every Shopify plan comes with a free subdomain. Once your website is up and running, you can replace your free “.myshopify.com” URL with a custom domain.
How can I check if a domain name is available?
You can check if a domain name is available by using a domain name search tool, such as the one provided by Shopify.