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It's a split decision.
Choose Neo4j when your application needs to store and analyze connected data, use graph analytics or GraphRAG, or run on a managed graph service. Choose PostgreSQL when an open-source object-relational database and self-hosting fit your stack. Neo4j’s AuraDB Free is $0, but production AuraDB plans charge by GB per hour. PostgreSQL software is free; teams supply hosting and operations. Compare your data model and operational requirements before choosing.
01Side by side
| Neo4j | PostgreSQL | |
|---|---|---|
| Pricing model | Paid AuraDB plans charge per GB per hour. | Open-source software; no paid database plan. |
| Free tier | AuraDB Free costs $0 per month. | PostgreSQL software is free of charge. |
| Open source and licence | Open-source status and licence are not identified. | Open source under OSI-approved PostgreSQL License. |
| Self-hosting | Self-managed graph database products are available. | Self-hostable database server. |
| Documentation | Documentation, Dev Center, GraphAcademy, and community resources. | Official documentation and community resources. |
| Integrations | Homepage names AWS, Databricks, Google Cloud, Azure, Snowflake. | Homepage names no specific integrations. |
| Deployment model | Fully managed and self-managed products. | Self-hosted database; teams handle hosting. |
| Limits and scaling | Paid tiers list memory and storage ceilings. | No published seat or usage limits. |
Neo4j Choose Neo4j if
- Choose Neo4j if connected data is central to your application.
- Choose Neo4j if you need graph analytics or GraphRAG.
- Choose Neo4j if you want a managed graph database option.
PostgreSQL Choose PostgreSQL if
- Choose PostgreSQL if you need an open-source object-relational database.
- Choose PostgreSQL if self-hosting and operational ownership suit your team.
- Choose PostgreSQL if avoiding database software charges is a priority.
02Pricing at real usage
AuraDB Free costs $0 per month, requires no payment method, and includes access to graph tools. For production, the pricing page lists AuraDB Professional at $0.09/GB/hour, with a 1GB minimum instance. AuraDB Business Critical is $0.20/GB/hour, with a 2GB minimum. Those are capacity rates, not monthly prices; the bill grows with provisioned capacity and running time. The listed tiers also differ in memory, storage, backup retention, and SLA. Virtual Dedicated Cloud has custom pricing, so teams need a sales quote. PostgreSQL software is free of charge under its open-source model; it has no paid database plan or published seat or usage limits. That does not price the server, hosting, or operational work a team supplies. The comparison is managed capacity charges versus free software with infrastructure costs outside the database license.
03API, SDKs and integration
Neo4j’s homepage presents graph database, graph analytics, graph data science, and GraphRAG products, with fully managed and self-managed deployment paths. It points developers to Documentation, the Dev Center, Deployment Center, community resources, and GraphAcademy courses. The homepage also names Model Context Protocol (MCP) among its AI resources and lists AWS, Databricks, Google Cloud, Microsoft Azure, and Snowflake as partners. PostgreSQL is an open-source object-relational database; its homepage directs developers to official documentation and community resources for installing and using it. Neither homepage names API protocols, SDKs, supported programming languages, or CLI commands. Teams should verify the relevant client libraries and connection method in product documentation before selecting a driver or planning an integration. The sources establish the learning and partner entry points, but do not provide enough detail to compare SDK coverage or API ergonomics.
04Open source, self-hosting and lock-in
PostgreSQL is open-source software under the OSI-approved PostgreSQL License, and teams can self-host it. Neo4j offers self-managed products as well as fully managed services, but its homepage does not identify an open-source license. That distinction matters if your procurement process requires a particular license or access to source code; verify Neo4j’s licensing terms for the product you plan to deploy. A managed Neo4j service reduces the need to run the database infrastructure yourself, while its self-managed option gives your team deployment responsibility. PostgreSQL puts hosting and operations with the team. Neither homepage documents data-export formats or a migration path. Before committing, check how your chosen deployment exports data and plan for the model change: moving between graph and object-relational systems means mapping relationships and adapting application queries. Do not assume a direct, low-effort migration.
Questions people ask
Should I choose Neo4j or PostgreSQL for a new application?
Choose Neo4j when connected data, graph analytics, knowledge graphs, or GraphRAG are core requirements. Choose PostgreSQL when an open-source object-relational database fits your data model and your team can supply hosting and operations. The better fit depends on the workload, not just the software price.
Is Neo4j free to use?
Neo4j lists AuraDB Free at $0 per month, with no payment method required. Its production AuraDB Professional and Business Critical plans charge by GB per hour, and Virtual Dedicated Cloud uses custom pricing. Check the plan’s capacity and retention terms against your workload.
Is PostgreSQL cheaper than Neo4j?
PostgreSQL software is free of charge under its open-source license, but teams pay for and operate the hosting environment. Neo4j’s AuraDB Free also costs $0; production AuraDB services have published hourly capacity rates. Compare total infrastructure and operations costs, not only database software charges.
Can I move data between Neo4j and PostgreSQL?
Plan a migration rather than assuming the systems are interchangeable. Neo4j stores connected data in graphs; PostgreSQL is an object-relational database. Map the data model and adapt application queries, then verify export formats and migration tooling for the exact products and versions you use.