AWS CloudFormation vs Terraform: Which Should You Choose in 2026?
Choosing between AWS CloudFormation and Terraform comes down to understanding what each tool does best. This comparison breaks down the key differences so you can make an informed decision based on your specific needs, not marketing claims.
By Toolradar Team · Last updated February 28, 2026 · Methodology
Short on time? Here's the quick answer
We've tested both tools. Here's who should pick what:
AWS CloudFormation
Infrastructure as code for AWS using YAML or JSON templates
Best for you if:
- • You need infrastructure as code features specifically
- • AWS CloudFormation enables infrastructure as code using declarative YAML or JSON templates
- • It provisions and manages AWS resources consistently, with automatic rollback on failures
Terraform
Infrastructure as code
Best for you if:
- • You want the higher-rated option (9.0/10 vs 8.4/10)
- • You want to try before committing
- • You need automation features specifically
- • The standard tool for infrastructure as code across any cloud
- • Declarative configuration with plan-apply workflow
| At a Glance |  AWS CloudFormation |  Terraform |
|---|---|---|
Price | Paid | Free + Paid |
Best For | Infrastructure as Code | Automation |
Rating | 84/100 | 90/100 |
| Feature | AWS CloudFormation | Terraform |
|---|---|---|
| Pricing Model | Paid | Freemium |
| Editorial Score | 84 | 90 |
| Community Rating | No ratings yet | No ratings yet |
| Total Reviews | 0 | 0 |
| Community Upvotes | 0 | 0 |
| Categories | Infrastructure as Code | AutomationCI/CD |
How AWS CloudFormation and Terraform Compare
AWS CloudFormation
Infrastructure as code for AWS using YAML or JSON templates
Paid · 84/100 score
Terraform
Infrastructure as code
Free tier available · 90/100 score
AWS CloudFormation is a infrastructure as code tool. Terraform is in automation.
Who Should Use What?
On a budget?
Terraform has a free tier. AWS CloudFormation is paid only.
Go with: Terraform
Want the highest-rated option?
AWS CloudFormation: 84/100. Terraform: 90/100.
Go with: Terraform
Value user reviews?
Neither has user reviews yet.
Go with: Terraform
3 Questions to Help You Decide
What's your budget?
AWS CloudFormation is paid. Terraform is freemium. Terraform lets you start free.
What's your use case?
AWS CloudFormation is a infrastructure as code tool. Terraform is in automation. Pick the category that matches your needs.
How important are ratings?
Terraform scores higher: 90/100 vs 84/100.
Key Takeaways
Terraform
- Higher score: 90/100 vs 84
- Free tier available
- Our pick for this comparison
AWS CloudFormation
- Better fit for infrastructure as code
The Bottom Line
Terraform (90/100) is our pick.
Frequently Asked Questions
Is AWS CloudFormation or Terraform better?
Terraform scores 90/100 in our evaluation. AWS CloudFormation is paid and Terraform is freemium.
What are AWS CloudFormation and Terraform used for?
AWS CloudFormation: Infrastructure as code for AWS using YAML or JSON templates. Terraform: Infrastructure as code.
What does AWS CloudFormation cost vs Terraform?
AWS CloudFormation is a paid tool. Terraform is freemium (free tier + paid plans). Visit their websites for detailed pricing.