What is a VPN and Why Would You Use One?

A VPN, or virtual private network, is a tool that encrypts your internet connection and hides your IP address from your ISP, websites, and other third parties. People use VPNs to improve privacy, stay safer on public Wi-Fi, access geo-restricted content, and reduce tracking while browsing online.

Whether you're using a VPN on your phone, laptop, or home network, the goal is usually the same: creating a more private and secure internet connection. Below, we'll explain what a VPN is, how it works, what it's good for, what it can't do, the most important VPN features, and how much VPN services typically cost.

What is a VPN?

A virtual private network (VPN) is a way to connect to the internet privately and securely by masking your IP address.

Your internet service provider (ISP) typically has information about each device you use to connect to the internet, such as smartphones and computers. This includes their Internet Protocol (IP) addresses.

An IP address is a unique identifier that allows information to be exchanged between devices on a network. Each internet-connected device has its own IP address that lets your ISP and potentially other entities know general information about your location. This could include collecting data about the websites you visit and potentially sensitive information you enter online.

Your IP address is essential, but it could give away sensitive information to your ISP and anyone who can access it. In some cases, your ISP could also track your online activity. This could include collecting data about the websites you visit and any passwords you enter.

Fortunately, VPNs can help address these privacy and anonymity issues. You can use VPN apps and software on various devices and operating systems, such as Android, iOS, macOS, and Windows. Some VPN services include a VPN browser extension, which you can use to access the VPN on restricted networks.

How does a VPN work?

Virtual private networks typically work by routing your internet connection through a VPN server that connects to your ISP. So you send information, including your real IP address, to the VPN server, and the server sends a different IP address and encrypted information to your ISP. This helps mask both your true physical location and your internet traffic.

Of course, the details are a bit more complicated than that, but the average user doesn’t have to worry about complex details. Most users who subscribe to a popular VPN provider won’t have to do much more than follow these steps:

1. Log in to your VPN account.
2. Select a server location worldwide.
3. Press the “Connect” button.

It’s typically that simple to get started with many VPNs. You can also dig into the different VPN features to shed some additional light on how VPNs work.

What actually happens inside the VPN tunnel

When you connect to a VPN, your device creates an encrypted “tunnel” to a VPN server. Think of it like a sealed private pipe through which your internet traffic travels. Instead of sending your browsing activity openly across the internet, the VPN scrambles your data into unreadable code before it leaves your device.

That encrypted traffic travels through the VPN tunnel to the VPN server, where it’s decrypted and sent to the website or app you’re trying to use. When the website sends information back (whether that’s a webpage, video stream, or login page), the process works in reverse. The VPN server encrypts the response again and sends it securely back through the tunnel to your device.

Anyone trying to monitor your connection in the middle, including your ISP or someone on the same public Wi-Fi network, sees only encrypted data. Meanwhile, the website you visit sees the VPN server’s IP address and location rather than your own.

How VPN protocols affect your connection

The rules that control how the encrypted VPN tunnel is created and maintained are called VPN protocols. Different protocols prioritize different things. Some focus more on speed, while others prioritize security or connection stability.

Today, WireGuard and OpenVPN are generally considered among the strongest options for most users because they offer a good balance of speed, privacy, and reliability. Some VPN companies also build custom protocols based on these technologies.

Most VPN apps automatically choose the best protocol for your connection. For a full breakdown of protocols and what to look for, see the VPN Features section below.

Do I need a VPN?

You can use a VPN to increase your online security and privacy. According to our VPN survey of 1,000 U.S. adults, only 39% of Americans actively use a VPN — but among those who do, 88% connect weekly or more, suggesting that once people adopt a VPN, it becomes a regular part of how they browse. 

The top reasons people use VPNs are security on public Wi-Fi (84%) and general internet safety (83%), followed closely by keeping personal data away from corporations and advertisers, and maintaining anonymity online.

They could also be used to bypass internet censorship or firewall restrictions and to access geo-restricted content on streaming platforms such as Netflix, Hulu, and Disney+.

What can you use a VPN for?

VPNs are useful in more situations than most people realize. Here are the most common scenarios where a VPN makes a real difference.

General security and privacy

There’s nothing wrong with being concerned about cybersecurity and online privacy. Billions of personal records, including names, Social Security numbers, and other information, are exposed in company data breaches each year.

If you want to shore up your personal efforts at online security, by all means. It’s a good mindset to have, and using a legit VPN service is another step toward better security.

Hiding online activity

Your ISP can track your online activity, which it can share with other parties. This doesn’t necessarily mean they’re doing anything with your personal data, but data tracking and collection policies vary by ISP.

One reason ISPs might be tracking your online activity is to deliberately restrict your bandwidth, also known as throttling. ISPs will do this to regulate network traffic or if you've reached a data usage cap. 

This is one reason you might need a VPN at home. With the right VPN, you could help mask your online traffic from your ISP. So even though the ISP could likely see you're using a VPN, they are less able to access any specific details about your online activity. 

Protecting you from unsecure public Wi-Fi

In our public Wi-Fi safety survey, 69% of respondents said they use public Wi-Fi weekly or more, and 38% connect daily. We found that among daily public Wi-Fi users, 1 in 4 reported experiencing a security issue. And what's worse, nearly half (47%) admitted to connecting to unverified networks.

Although it may be convenient to jump on public Wi-Fi if you don’t want to use data or you’re not in a good service area, unsecured networks pose significant cybersecurity risks. Because just about anyone can connect to them, it could leave the door open for hackers to see and access other devices on the network. This could expose certain personal information or browsing activity, especially on unsecured websites or networks.

It's a common enough risk that it's become the single biggest driver of VPN adoption. According to our research, 84% of VPN users say securing their connection on public Wi-Fi is their primary reason for using a VPN, more than any other use case.

A VPN encrypts your online traffic, making it difficult for prying eyes to see what information is flowing through your connection, even on public Wi-Fi.

Accessing geo-restricted services

Did you know that many streaming services, such as Netflix, have different content libraries in different regions? For example, Netflix in the U.S. doesn’t have all the same shows and movies as Netflix in the U.K.

This is typically because of licensing agreements and restrictions that are likely impossible for a streaming service to change. But viewers who want to access more content have found that VPNs can help bypass geo-restrictions.

This isn’t necessarily an illegal practice, though it’s likely against the terms of service for most streaming companies. However, many VPNs continue to function as a way to change your real IP address to other worldwide locations and access more streaming content.

According to our streaming survey, 49% of respondents have used a VPN with a streaming service, and more than 1 in 4 have used one specifically to watch sports.

Bypassing internet restrictions

You might experience internet censorship or restricted access to certain websites, depending on where you live, where you go to school, or where you work. A VPN could help unlock restricted websites in some cases, but it depends on the type of VPN used and the restrictions in place.

VPN vs. proxy: what’s the difference?

Both a VPN and a proxy server can hide your IP address and make it appear as though your internet traffic is coming from somewhere else. But that’s where most of the similarities end.

A proxy server typically works at the browser or app level. It reroutes traffic through another server so websites see a different IP address instead of your own. However, proxies usually don’t encrypt your internet traffic. That means your ISP, employer, school, or anyone monitoring the network can still potentially see what you’re doing online.

A VPN works differently because it encrypts all internet traffic from your device at the system level, not just a single browser tab or app. In addition to masking your IP address, a VPN also hides the contents of your connection by scrambling your data before it travels across the internet.

A simple way to think about it: a proxy is like changing the return address on a letter. It looks like the letter came from somewhere else, but the contents are still visible. A VPN seals the letter inside a locked box before it’s sent.

If your goal is simply to access a geo-blocked website, a proxy may be enough. But if privacy or security are a concern, especially on public Wi-Fi or while traveling, a VPN is usually the better choice.

Not sure which one fits your situation? Our guide to whether you need a VPN walks through the most common scenarios.

What don’t VPNs do?

VPNs can be misused, so it's important to understand when and how you might unintentionally break state and national laws. Consider not using VPNs for the following reasons:

Legalize illegal activity

Using a VPN won’t magically make an illegal online activity legal. The illegal activity will remain illegal even if you use a VPN.

But are VPNs legal? Mostly, yes. VPNs are legal in most countries, but it’s typically best to research local laws and policies before traveling abroad.

Completely hide your online activity

It might not be possible to completely hide your online activity, and using a VPN won’t change that. A VPN could help hide some of your activity, including from your ISP, but different websites could still track your movements online using computer cookies.

Cookies are small files that are stored on your device or browser. They track your requests and are often used by websites to personalize your user experience.

Boost your internet speeds

VPNs aren’t designed to increase internet speeds and could have the opposite effect. Using a VPN won’t always have a dramatic slowing effect on your internet, but it might be noticeable in some situations.

How much does a VPN cost?

VPNs don’t typically cost much — around $2 to $8 per month is common — and are often sold as subscriptions from VPN service providers. 

Depending on the provider, you might have options for monthly or annual subscriptions. Monthly plans will always be more expensive than annual or multi-annual plans. The monthly price tends to drop dramatically if you choose a longer plan and pay a higher upfront cost compared to paying on a month-to-month basis.

The downside is that you might be locked into paying for a specific VPN service for a year or more. If you want to test a service before committing to a long-term plan, look for money-back guarantees and free trials.

For a full breakdown of current pricing and deals, see our VPN price guide.

How to save money on a VPN

Additionally, consider these three other strategies for saving money on VPN costs.

1. Look for promotions and deals

Software companies, including VPN providers, have frequent deals and sales. It could be worth checking for promotions around holidays, including popular shopping dates like Black Friday and Cyber Monday.

2. Share costs with friends and family

It’s not uncommon for VPN service providers to allow multiple devices to be used simultaneously on the same account. This could allow friends and family to access VPN services while sharing the cost.

3. Buy a software bundle

VPNs are among the many available services that can help keep you safe and protected from cybersecurity threats. Other important services include antivirus, anti-malware, and password managers. Certain companies might offer bundles that include multiple services at a lower price than if you were to pay for each one individually. 

For example, Surfshark offers a comprehensive package that includes its super-fast and secure VPN client, Surfshark VPN, plus reputable Surfshark Antivirus software, Surfshark CleanWeb ad blocking, private browsing services, identity protection alerts, and more.

VPN features

When choosing the right VPN provider for you and your household, it comes down to cost as well as features, features, features.

Server network

The number of servers and locations a VPN offers affects speed, reliability, and what content you can access. More servers mean traffic is spread across more nodes, reducing congestion and giving you a better chance of a fast, stable connection.

But server count alone isn't the most reliable measure of quality. A VPN with fewer, well-maintained servers can outperform one with a much larger but underpowered network.

Location coverage matters just as much as quantity. If you want to access content from a specific country, you need a provider with servers there. A VPN with thousands of servers concentrated in a few countries may be less useful than one with broader global coverage, depending on what you need it for.

Before committing to a provider, check whether it has servers in the specific countries you care about. Don't just go by the total server count.

Encryption

VPNs encrypt traffic by using ciphers, or complex algorithms that are often virtually impossible to crack. The most common and secure cipher is Advanced Encryption Standard (AES).

You might see AES referred to as AES-128 or AES-256, which are two forms of the same encryption algorithm. AES-256 is considered more secure and is commonly used by many VPNs and the military. However, even trying to crack AES-128 is estimated to take many, many years (think billions of years).

VPN protocols

A VPN protocol is a set of rules that helps keep your internet connection private and secure. If you think of a VPN as a way to send traffic through a secure tunnel, a VPN protocol decides how that traffic is sent and what kind of encrypted tunnel is used.

Here are common types of VPN protocols and their general security levels:

Protocol	Speed	Security	Encryption	Best for
OpenVPN	Fast	Good	Very Good	Configuration
WireGuard	Fast	Good	Good	Anything
L2TP/IPSec	Medium	Good	Good	Secure connections
IKEv2/IPSec	Fast	Good	Very Good	Mobile devices
PPTP	Fast	Poor	Poor	Speed
SSTP	Medium	Medium	Medium	Microsoft connections

Note that some VPN providers have developed their own protocols. This typically involves building on top of an existing protocol. For example, NordVPN uses NordLynx, which is based on WireGuard. HotSpot Shield uses Hydra, which is based on OpenVPN.

Split tunneling

Split tunneling is a method of customizing which app or device traffic is routed through your VPN tunnel and which traffic connects directly to your ISP. You might want split tunneling if:

• You want to access devices on your local network, such as your printer
• You want to use less bandwidth
• You want to access local and foreign networks at the same time

Kill switch

VPNs are designed to encrypt your online traffic, but what if your VPN suddenly disconnects? Your device would typically revert back to connecting to the internet directly through your ISP and potentially reveal your internet activity.

VPNs use kill switches to solve this issue by preventing your device from connecting to the internet if your secure connection isn’t active. So if your VPN connection drops, the kill switch will automatically block your internet access.

Dynamic and static IP addresses

Each device is assigned an IP address each time it connects to the internet, including when using a VPN.

A dynamic IP address can change over time or between sessions. You might want a dynamic IP for increased anonymity while online. You might not want one if you use a VPN for school or work, and the organization has to accept your connection continuously because your address keeps changing.

A static IP address is the same whenever you connect to the internet. You might want to use a static IP if you need stable connections, fast download and upload speeds, and the ability to access your device from anywhere. You might not want to use on if you wish to maintain your privacy, since these IPs are easier to track. 

No-logs policy

A no-logs policy means a VPN doesn’t log your online activity. This is important because one of the primary reasons for using a VPN could be to hide your traffic. But if a VPN is tracking you rather than your ISP, what’s the difference?

Many VPNs advertise “no logs” or no-logs policies that indicate they don’t track your traffic. These VPN services may also publish VPN audit results conducted by third parties, so you can confirm they're staying true to their word. 

VPN headquarters

A company’s headquarters rarely matters for the services it provides, but it could make a difference with VPN providers. This is primarily due to multilateral government alliances called the 5 Eyes, 9 Eyes, and 14 Eyes.

Not many details are known about these alliances, but it’s widely believed that the countries within them share sensitive information about their citizens. In other words, these alliances are believed to be a global surveillance network.

If a VPN’s headquarters fall within a country that’s part of one of these alliances, your VPN might not offer as much privacy as you’d hope, even with a no-logs policy. This is because certain countries within the alliances often compel VPN providers to hand over customers’ data.

Here are the member countries of each alliance:

5 Eyes	9 Eyes	14 Eyes
United States	United States	United States
United Kingdom	United Kingdom	United Kingdom
Canada	Canada	Canada
Australia	Australia	Australia
New Zealand	New Zealand	New Zealand
	Denmark	Denmark
	France	France
	Netherlands	Netherlands
	Norway	Norway
		Belgium
		Germany
		Italy
		Spain
		Sweden

Bottom line

Here are a few things to consider when learning about VPNs:

• What is a VPN? A tool that provides a secure and encrypted connection.
• Why should you use a VPN? It depends on your situation, but you might use a VPN to stay protected on public Wi-Fi, hide your online activity from your ISP, or access geo-restricted content.
• How does a VPN work? It routes your online traffic through a virtual tunnel, which masks your true IP address and encrypts your online activity.
• How much does a VPN cost? It depends on each VPN service provider and whether you opt to pay monthly or annually. But it’s common to pay around $2 to $8 per month for popular VPNs if you buy an annual or multi-year subscription. The best VPNs are typically paid services, not free VPNs, which may not be as secure and can limit your data usage.

VPNs are important resources for helping improve your online security. They might seem complex, but it’s typically easy to get started with one. Check out our roundup of the best VPN services now to explore your options. 

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