TL;DR: NAT Gateways cost ~$32/month per AZ just existing, plus $0.045/GB processed — and the default architecture gives every VPC its own pair. Five VPCs × 2 AZs = $3,840/year of pure idle. Consolidation routes all VPCs' internet-bound traffic through one shared "egress VPC" behind a Transit Gateway: 10 NAT Gateways become 2, transparently to applications (it's just routing). TGW data processing ($0.02/GB) is also cheaper than NAT's per-GB rate.
The numbers
Worked example — 6 VPCs, 2 AZs each, 20 TB/month:
| Before | After consolidation | |
|---|---|---|
| NAT hourly | 12 × $32 = $394/mo | 2 × $32 = $65/mo |
| Data processing | $900/mo (NAT $0.045/GB) | $600/mo (TGW $0.02/GB) |
| TGW attachments | — | ~$75/mo |
| Total | $1,294/mo | ~$1,040/mo |
That's the conservative case (~$3,000/year); orgs with more VPCs commonly see 50–70% cuts, and the multi-account SaaS scenario in the full workflow saves $13k+/year. Break-even rule of thumb: consolidation pays when you're eliminating 4+ NAT Gateways.
Do this
-
Two-minute audit first: Cost Explorer → filter to NAT Gateway → split hourly vs data processing. That number decides everything.
-
Peel off S3/DynamoDB traffic before consolidating — free Gateway Endpoints often remove half the data-processing charge and change the math.
-
Build the hub: create a Transit Gateway; set up one egress VPC with NAT Gateways in 2+ AZs (NAT is zonal — one AZ is an outage waiting); attach the spoke VPCs.
-
Reroute: spoke VPC route tables send
0.0.0.0/0→ Transit Gateway; egress VPC routes spoke traffic through its NAT Gateways. Test connectivity per spoke, then delete the old NAT Gateways. -
After cutover, watch attribution: if one VPC drives 90% of TGW data costs, optimize it specifically.
Gotchas
- Attachment fees are always-on (~$36/month per VPC). Don't attach isolated VPCs that never talk to the internet — they'd pay for nothing.
- Security groups/NACLs: spokes must allow outbound to TGW ranges; egress NAT must accept spoke CIDRs. Miss this and you'll debug rejected packets in VPC Flow Logs for an hour.
- Asymmetric routing: spoke VPCs keeping their own Internet Gateways risk split paths. Best practice: the egress VPC handles all outbound; spokes get zero direct internet.
- Throughput ceiling: 50 Gbps per TGW attachment — rarely hit, but monitor
BytesOutToDestinationwhen consolidating heavy VPCs. - Once the TGW exists, it pays dividends beyond NAT: centralized routing, simpler inter-VPC connectivity, hybrid on-ramp.
Skip this if
- You run one VPC — nothing to consolidate (but bookmark it for when environments multiply).
- You'd eliminate fewer than ~4 NAT Gateways — attachment fees can eat the win; model it first.
- Your NAT bill is dominated by S3/DynamoDB data processing — Gateway Endpoints alone may solve it for free.