The calculation people forget
Comparing monthly prices is misleading because it ignores the only genuinely scarce resource: your time. A properly kept VPS costs a few hours over a year — updates, checking that backups ran, renewing a certificate that failed, the occasional incident.
That is not a lot. But those are hours that rarely fall at a convenient moment, and that do not happen at all once the person who was meant to handle them has changed role.
Conversely, as soon as the number of services grows, the VPS regains the advantage: one machine at €4.99/month runs several, where four managed applications are billed four times.