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You're basically paying for a storage locker to keep the website files in whenever nobody's looking at them, and also the delivery service that will show the website files to a user when they are looking at it, you can get around it by self hosting but if you're looking at paid hosting it's probably because you looked up how to self host and had a panic attack
Also, self hosting isn't actually free. I mean, it's "free" in that the people who do it generally have stuff laying around anyway and the skill to set things up, but for most people, that's thousands of bucks in time, as the very least.
You can rent a LOT of hosting for that.
I was talking more about how the costs for self hosting are more to do with set-up and regular maintenance than with rental payments
Also sanity, self hosting imposes a steep sanity cost if you're not well versed in OS setup and CLI navigation.