What business VoIP actually costs: a small business breakdown

VoIP providers publish attractive per-user prices and are less helpful about showing the total cost before you commit. We have walked through the pricing structures at eight major providers to show you what to look for.

The base rate

Entry-level plans at the major providers run $15 to $25 per user per month on annual billing. That covers unlimited domestic calling, basic video meetings, and business SMS. Monthly billing costs 20 to 30 percent more - a plan listed at $20 per user annually might be $28 without the commitment.

What gets added on

One local number per user is typically included. Toll-free numbers are add-ons, usually $5 to $10 per month per number. Porting existing numbers to the new system takes two to four weeks and often comes with a one-time fee of $15 to $20 per number. Some providers charge activation fees of $30 to $50 per account - not universal, but common enough to ask about before signing.

International calling is metered at almost every provider. If your business calls international numbers regularly, get the specific per-minute rates for your destinations before choosing. The variance between providers on international rates can be significant enough to change your recommendation.

Hardware costs

You do not need to buy desk phones. Every major VoIP system runs on desktop and mobile apps. If your team prefers desk phones, standard IP handsets from Polycom and Yealink run $80 to $250 per phone. Buying directly from the hardware manufacturer is almost always cheaper than through the VoIP provider.

A real example

A 10-person team on a $25 per user per month plan, billed annually: $3,000 per year for the service. Add one toll-free number at $10 per month ($120/year) and porting fees for three existing numbers at $20 each ($60, one-time). No desk phones. Total first-year cost: approximately $3,200.

A traditional on-premises PBX system for 10 extensions: $8,000 to $15,000 in upfront hardware and installation, plus $200 to $500 per month in ongoing maintenance and carrier fees. For most small businesses, hosted VoIP is cheaper from day one.

Questions to ask before signing

Ask for confirmation that the quoted rate is locked in writing. VoIP rates increase more often than providers publicize. Ask specifically about pricing after year one and what happens to your phone numbers if you leave.