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I don't have experience running a Mastodon server, but I notice they are under heavy load at the moment and have much delays. I have experience running a Pleroma and a Friendica server for myself. Based on that, I think if you are going to run a small server for a group of friends or family, please use Pleroma instead. For more users, especially those you don't know personally, you may need the extra moderation tools Mastodon has, but else Pleroma is much lighter. You can also consider Friendica, especially if it's only a personal server.

For costs it should be under €10 per month, maybe €3, depending how you set it up. I have in the past run Pleroma on a €3,50/month node while connected to a busy relay.