Estimated monthly savings
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What a VoIP phone system costs
Voice over IP (VoIP) moves your office phone lines to the internet. Instead of paying per copper line and maintaining an on-site PBX, you pay a monthly fee per user to a cloud provider that hosts the phone system. The bill usually includes unlimited calling within the country, voicemail-to-email, auto attendant, call queues, mobile and desktop apps and video meetings.
Monthly VoIP cost = users × price per user · One-time cost = desk phones + setup
Per-user pricing
Business VoIP plans typically cost $15 – $35 per user per month. Entry plans cover calling and voicemail; mid-tier plans add call recording, CRM integration and analytics; contact-center plans can exceed $70 per agent. Make sure you count only the people who need a phone number – shared lobby or conference phones often need a cheaper "common area" license.
Hardware
Many employees can use softphone apps on a computer or mobile, which costs nothing extra. Receptionists, sales teams and anyone who spends hours on calls usually prefer a desk phone. Basic IP phones cost $60 – $120, executive models with color screens $150 – $300, and DECT wireless handsets $100 – $200. Conference room speakerphones run $300 – $1,000.
Bandwidth: will your internet handle it?
Each call uses a constant stream of data in both directions. With the G.711 codec a call needs about 87 – 100 kbps including network overhead; G.729 uses around 32 – 40 kbps; Opus adapts between roughly 30 and 80 kbps. Multiply by the number of people who might be on calls at the same time – usually 25 – 40 % of staff in a typical office, more in sales or support teams.
| Simultaneous calls | G.711 | G.729 | Recommended connection |
|---|
| 5 | 0.6 Mbps | 0.25 Mbps | Any business broadband |
| 15 | 1.9 Mbps | 0.75 Mbps | 20 Mbps+ upload with QoS |
| 40 | 5 Mbps | 2 Mbps | Fiber, dedicated voice VLAN |
| 100 | 12.5 Mbps | 5 Mbps | Fiber + backup connection |
Bandwidth matters less than quality: latency under 150 ms, jitter under 30 ms and packet loss under 1 %. Enable Quality of Service (QoS) on your router, put phones on a separate VLAN and avoid running voice over congested Wi-Fi.
Equipment checklist
- PoE switch – powers desk phones over the network cable; size it at about 5 – 7 W per phone.
- Business router with QoS, SIP ALG control and a VPN for remote workers.
- Headsets – wireless DECT or Bluetooth headsets improve productivity for call-heavy roles.
- Backup internet – a 4G/5G failover router keeps phones working during outages; most providers can also forward calls to mobiles automatically.
- UPS for the switch and router so phones keep working during short power cuts.
Hidden costs to ask about
Read the contract for taxes and regulatory fees (often 15 – 30 % on top of the advertised price in the US), toll-free minutes, international rates, number porting fees, minimum contract length and early termination charges. Also confirm E911 address registration for every user and the provider's uptime guarantee.
Frequently asked questions
How much does business VoIP cost per month?
Most hosted VoIP plans cost $15 – $35 per user per month before taxes and fees. Advanced and contact-center plans cost more.
How much bandwidth do I need for VoIP?
Plan about 100 kbps per simultaneous call with G.711, or 40 kbps with G.729, in both directions. Ten simultaneous calls need roughly 1 – 1.25 Mbps.
Can I keep my phone numbers?
Yes. Number porting lets you move existing numbers to a VoIP provider, usually within one to three weeks.
Do I need new phones for VoIP?
You need IP phones or softphone apps. Old analog phones can work through an analog telephone adapter (ATA), but features are limited.
Is VoIP reliable?
With a good business internet connection, QoS and a backup connection, VoIP is as reliable as traditional lines and adds failover to mobile phones.
About DialLedger
DialLedger is an independent, free calculator that helps small and medium businesses estimate the cost of moving to a cloud (hosted) VoIP phone system, including desk phones and network bandwidth. We are not a VoIP provider or reseller and do not earn commissions.
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