AWS CloudFormation vs Terragrunt: Which is Better in 2026?
Choosing between AWS CloudFormation and Terragrunt 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.
Bottom line: AWS CloudFormation is our overall pick for DevOps workflows. Pick Terragrunt if you need infrastructure as code.
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 DevOps 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
Terragrunt
Terraform wrapper for DRY configurations
Best for you if:
- • You need something completely free
- • You need infrastructure as code features specifically
- • Terragrunt is a thin wrapper for Terraform that keeps configurations DRY
- • It manages multiple Terraform modules with reduced duplication
| At a Glance |  AWS CloudFormation |  Terragrunt |
|---|---|---|
Starts at | $0.0009/operationHandler Operations | FreeFree tier available |
Best For | DevOps | Infrastructure as Code |
Rating | 4.5/5 | - |
Free plan | No | Yes |
Choose AWS CloudFormation or Terragrunt?
Choose AWS CloudFormation if
Infrastructure as code for AWS using YAML or JSON templates
- Native AWS IaC
- Supports all AWS services
- Drift detection
- Your work is DevOps-shaped, not infrastructure as code-shaped
Choose Terragrunt if
Terraform wrapper for DRY configurations
- Terraform wrapper
- DRY Terraform
- Good for modules
- You want a fully free tool (AWS CloudFormation requires payment)
- Your work is infrastructure as code-shaped, not DevOps-shaped
| Feature | AWS CloudFormation | Terragrunt |
|---|---|---|
| Pricing Model | Paid | Free |
| User Rating | ★4.5/5 103 reviews | No ratings yet |
| Categories | DevOpsCloud & Infrastructure | Infrastructure as CodeDevOps |
In-Depth Analysis
AWS CloudFormation
Infrastructure as code for AWS using YAML or JSON templates
Strengths
- +Native AWS IaC
- +Supports all AWS services
- +Drift detection
- +Stack management
- +No additional cost
Weaknesses
- -YAML/JSON syntax verbose
- -AWS only
- -Slow deployments
- -Error messages cryptic
- -Rollback can be slow
Key features
Terragrunt
Terraform wrapper for DRY configurations
Strengths
- +Terraform wrapper
- +DRY Terraform
- +Good for modules
- +Active development
- +Open source
Weaknesses
- -Learning curve
- -Added complexity
- -Terraform native catching up
- -Documentation gaps
- -Debugging harder
Key features
Pricing: AWS CloudFormation vs Terragrunt
| Plan | AWS CloudFormation | Terragrunt |
|---|---|---|
| Tier 1 | Free | Free Open Source |
| Tier 2 | $0.0009 /operation Handler Operations | Free Terragrunt Scale Free |
| Tier 3 | N/A | Custom Terragrunt Scale Team |
Pricing verified from each vendor's public pricing page. Compare in detail on AWS CloudFormation pricing and Terragrunt pricing.
Who Should Use What?
On a budget?
Terragrunt is free. AWS CloudFormation is paid.
Go with: Terragrunt
Want the highest-rated option?
AWS CloudFormation is rated 4.5/5. Terragrunt has no ratings yet.
Go with: AWS CloudFormation
Value user reviews?
AWS CloudFormation: 103 reviews (4.5/5). Terragrunt: no ratings yet.
Go with: AWS CloudFormation
3 Questions to Help You Decide
What's your budget?
AWS CloudFormation is paid. Terragrunt is free. Go with Terragrunt if free matters most.
What's your use case?
AWS CloudFormation is a DevOps tool. Terragrunt is in infrastructure as code. Pick the category that matches your needs.
How important are ratings?
AWS CloudFormation is rated 4.5/5; Terragrunt has no ratings yet.
Key Takeaways
AWS CloudFormation
- Our pick for this comparison
Terragrunt
- Completely free
- Better fit for infrastructure as code
The Bottom Line
AWS CloudFormation is our pick. That said, Terragrunt is free, hard to beat on price.
Frequently Asked Questions
Is AWS CloudFormation or Terragrunt better?
AWS CloudFormation is rated in our evaluation. AWS CloudFormation is paid and Terragrunt is free.
What are AWS CloudFormation and Terragrunt used for?
AWS CloudFormation: Infrastructure as code for AWS using YAML or JSON templates. Terragrunt: Terraform wrapper for DRY configurations.
What does AWS CloudFormation cost vs Terragrunt?
AWS CloudFormation is a paid tool. Terragrunt is completely free. Visit their websites for detailed pricing.