The Mechanics of a VPN Speed Test
A VPN speed test quantifies the performance impact of routing your internet connection through an encrypted tunnel to a remote server. It measures three core metrics: download speed (Mbps), upload speed (Mbps), and latency (ping in milliseconds). The process involves sending and receiving controlled data packets between your device and a test server, first through your raw ISP connection and then through the VPN tunnel. The difference between these two results—the performance overhead—is the cost of encryption, geographical distance, and server load. According to data from the Australian Competition and Consumer Commission’s (ACCC) Measuring Broadband Australia program, the average Australian fixed-line broadband download speed in the December 2023 quarter was 102.7 Mbps. Introducing a VPN layer can alter this figure, sometimes marginally, sometimes catastrophically.
| Metric | Definition | Impact of a VPN | Acceptable Degradation (Australian Context) |
|---|---|---|---|
| Download Speed | Rate data is pulled from the internet (Mbps). | Typically reduced by 5-30% on a quality connection to a nearby server. | Less than 15% loss for local servers (e.g., Sydney to Melbourne). |
| Upload Speed | Rate data is sent to the internet (Mbps). | Often sees higher proportional loss due to encryption overhead on outbound packets. | Losses of 20-40% are common but should not cripple video calls or file sharing. |
| Ping (Latency) | Round-trip time for a signal (ms). Critical for gaming, trading. | Adds 10-150ms+ depending on server location and routing. | An added 10-30ms to an Australian server is negligible. 100ms+ to the US affects real-time apps. |
| Jitter | Variation in latency. Measured in milliseconds. | Can increase due to inconsistent server load or network congestion. | Should remain below 30ms for stable VoIP and gaming. |
Comparative Analysis: VPN Test vs. Standard Speed Test
A standard speed test, like those from Ookla or the ACCC, measures the performance of your connection to your ISP’s network and beyond. It’s a benchmark of your raw, paid-for service. A VPN speed test is a diagnostic tool for a specific application—the VPN software itself. The standard test tells you if your NBN plan is delivering; the VPN test tells you if your chosen privacy tool is fit for purpose on that plan. The key difference is the endpoint. A standard test often connects to a server optimised by your ISP, perhaps even within its own network. A VPN test forces traffic through a third-party server, often in another city or country, applying encryption/decryption cycles at both ends. This rerouting is the primary source of speed loss. For an Australian in Perth testing to a Sydney server, the raw ping might be 45ms. Through a VPN endpoint in Singapore, that could balloon to 120ms, fundamentally changing the usability of the connection for certain tasks.
What this means for an Australian user is a need for dual-baseline testing. You must first establish your true baseline speed without the VPN using a reputable local test server—think Brisbane, Sydney, Melbourne. Then, and only then, can you activate your VPN, connect to your desired server location, and run the test again using the same underlying service. The comparison is everything. A user on a 50 Mbps NBN 50 plan in Adelaide might see 48 Mbps download baseline. Connecting to a US VPN server could see that drop to 32 Mbps. That’s a significant 33% loss. But connecting to a VPN server in Melbourne might only drop it to 44 Mbps, a far more acceptable 8% overhead for the privacy benefit.