Quick Answer
SendGrid and Mailgun pricing are close enough that the decision comes down to sending pattern, not raw price per email. For low volume (under 50,000 emails/month), both cost roughly the same — $20-35/month. At 100,000 emails/month, SendGrid’s Essentials plan ($19.95 for 50k + overage) can edge slightly cheaper. At 500,000+, dedicated IP costs and tier upgrades change the math. Mailgun’s flex plans (pay per 1,000 emails) are better for variable volume. SendGrid’s fixed plans are better for predictable volume.
Pricing by email volume
| Monthly volume | SendGrid (Essentials) | SendGrid (Pro) | Mailgun (Flex) | Mailgun (Scale) |
|---|---|---|---|---|
| 10,000 | $19.95 (50k plan) | ~$90 | ~$35 | — |
| 50,000 | $19.95 | ~$90 | $35-50 | — |
| 100,000 | $39.95 (100k plan) | $90-120 | $80-100 | $90-110 |
| 500,000 | — | $120 + overage | — | ~$300-400 |
| 1,000,000 | — | custom | — | ~$500-700 |
What changes the real cost
Dedicated IP
Both platforms charge extra for dedicated IP addresses. SendGrid includes 1 dedicated IP on Pro plans. Mailgun charges $60-100/month per dedicated IP. If you send high volume (500k+/mo), dedicated IP is not optional — both platforms require it for deliverability reasons.
API vs SMTP
Both charge the same whether you send via API or SMTP. There is no price difference by integration method.
Email validation and lists
SendGrid charges separately for email validation and list cleansing. Mailgun includes basic validation in higher tiers. Both charge extra for extensive list cleaning.
Overage rates
- SendGrid Essentials: $1.00 per 1,000 extra emails
- SendGrid Pro: $0.10 per 1,000 extra emails (cheaper overage)
- Mailgun Flex: ~$0.80 per 1,000 extra emails
- Mailgun Scale: ~$0.50-0.70 per 1,000 extra emails
When SendGrid is cheaper
- You send a consistent volume every month and want a fixed price
- You need the free tier (100 emails/day permanently, no credit card)
- You want simpler tracking and analytics built into the base plan
- Your team already uses Twilio (SendGrid is a Twilio product)
When Mailgun is cheaper
- Your volume fluctuates significantly month to month (flex plans only charge for what you use)
- You need a simple API-first setup without a dashboard-heavy experience
- You are a solo developer or very small operation sending under 10k/month
Hidden costs to check
SendGrid: The jump from Essentials to Pro is large ($19.95 → ~$90). If you outgrow Essentials features (subuser management, webhook customization, dedicated IP), the price jump is significant.
Mailgun: Dedicated IP cost adds up fast. At $60-100/month per IP, that can double or triple the base plan cost for high-volume senders.
Bottom line
SendGrid is better for predictable volume, teams that want dashboard tools, and businesses already in the Twilio ecosystem. Mailgun is better for variable-volume senders, lean developer teams, and anyone who prefers usage-based billing over fixed plans. Both are reliable for transactional email — the pricing difference alone should not drive the decision unless your budget is very tight.
Choose this if
- The page matches the decision you are making now.
- The tool, pricing model, and workflow fit your business model.
- You have checked current official pricing before buying.
Skip this if
- You need a different business model, channel, or budget range.
- The platform adds complexity your team will not use.
- You are comparing only by starting price instead of total monthly cost.
Final verdict
Use the decision table, pricing notes, and related guides to narrow the shortlist. The best email marketing platform is the one that matches list size, automation depth, ecommerce needs, budget, and switching cost.