Do you feel like your current phone system ties you to your desk?
Maybe you’re constantly on the move — checking inventory, meeting customers, or coordinating with contractors — or maybe you’re missing important phone calls at your project sites.
It’s time to get a phone system that can move with you, like a Voice over Internet Protocol (VoIP) phone system. But how much does VoIP cost?
In this guide, you’ll find a clear breakdown of pricing across different providers. You’ll also learn about key cost factors (including hidden fees you might not be considering) so you can make the most cost-effective, reliable decision for your business.
How much does VoIP cost?
A VoIP phone system typically costs between $15 to $40 per month per user, with pricing on the higher side for enterprise and more customized VoIP solutions.
Let’s say your team of five uses OpenPhone as your VoIP phone system.
For a separate VoIP number for each user, a main office number (giving you six numbers), and free calls and texts to US and Canadian numbers, your total upfront cost is between $81.50 and $83 per month and a one-time US carrier registration fee of $19.
Plus, OpenPhone works on your existing devices so no additional hardware required.
That’s nothing compared to what an on-premise PBX phone system costs to provide the same functions. (For a traditional telephony system with five phone lines, companies pay an average of over $4,000 for installation and maintenance. You do the math.)
Breakdown of VoIP costs
Your total VoIP costs can vary depending on factors like:
- The number of users
- How many phone numbers your business needs
- Whether your provider changes based on usage (like VoIP call minutes or additional extensions)
- Monthly or annual payment plans
- Features included in each plan
- Optional hardware, like VoIP headsets or desk phones.
To make it easy, we’ve categorized VoIP software cost factors into four categories: one-time costs, recurring costs, add-ons, and taxes:
One-time costs
Switching to a virtual phone system involves minimal upfront costs compared to traditional phone systems. Here are the main one-time expenses to consider:
- US carrier registration: As of August 2023, any business that calls or sends messages to US numbers through a cloud-based phone provider must register to be approved as a US carrier. This requires a one-time $19 fee.
- Number porting: If you want to keep your current phone number, ask your potential provider whether they charge to port your number to their system. OpenPhone doesn’t charge for this, but it can cost up to $30 per number, depending on the VoIP service.
- Hardware (optional): With VoIP providers like OpenPhone, you can use any smart device you already own (like a computer, tablet, or mobile device) for free. But if you prefer dedicated hardware, you might invest in a VoIP headset (starting at around $13) or a desk phone (ranging from $40 to $350).
🥴 Unlike VoIP, traditional landlines come with many upfront expenses, including software, server hardware, desk phones, and associated installation costs.
You’ll also end up spending thousands of dollars on maintenance, repair, ongoing IT support, and opening additional offices. Finally, adding more lines requires copper wiring, which can lead to significant extra costs if you expand or relocate.
Recurring costs
Cloud phone systems come with predictable monthly costs, which can vary depending on your provider and the features you need. Here’s what you should keep in mind:
- Subscription plans: The bulk of your recurring costs from VoIP providers are annual or monthly subscriptions. OpenPhone’s basic plan starts at $15 per user per month (paid annually), offering free calls and texts in the US and Canada, free softphone functionality, voicemail-to-text transcription, call recordings, and integrations with tools like Slack and Zapier. Other providers may charge more for advanced features or international coverage.
- Scalability and upgrade costs: You might incur costs if you need to upgrade your internet plan or add additional numbers as your team grows. On OpenPhone, each user on your plan includes one unique US, Canadian, or toll-free number; any extra numbers are $5 per number.
- International calling: Most providers offer competitive rates for international phone calls, but these are often billed separately. OpenPhone offers low international calling rates for a small additional fee, depending on the destination.
- Minute-plans: If your provider bills based on call minutes, look for plans with free calling to US and Canadian numbers (like all of OpenPhone’s plans 😉) or packages that suit your team’s needs. Otherwise, overages can add up quickly.
- Monthly messaging fee: The Campaign Registry charges a monthly fee of $1.50-$3.00, depending on your use case, to help you maintain good standing with the large US cell carriers.
- Low Volume Standard: $1.50 per month for businesses with an Employer Identification Number (EIN) that send fewer than 6,000 SMS and MMS messages per day
- Sole Proprietor: $2 per month for businesses without an EIN or equivalent business tax id.
- Non-profit organizations: $3 per month for non-profit businesses
- Low Volume Standard: $1.50 per month for businesses with an Employer Identification Number (EIN) that send fewer than 6,000 SMS and MMS messages per day
VoIP service add-ons
Most VoIP providers offer additional features like international calling, integrations, auto-attendants, call forwarding and call routing, and premium customer support.
These functions can enhance your service. But if they’re not included in the base plans, they can quickly add to your VoIP phone system costs.
When choosing a VoIP provider, consider how much of what you need is included in the base plan. A lower-priced plan may seem like it’s cost-saving for you, but could end up costing more if essential features are only available as add-ons.
For example, OpenPhone offers add-ons like automated messages via Zapier, Make, and the OpenPhone API, and extra phone numbers. But almost everything else a small business might need is covered in our plans.
Taxes
Nothing is certain except death and taxes. These can be federal, state, or local taxes, along with government-mandated fees and surcharges.
The exact amount you’ll pay will depend on your service location. But according to 2024 data, the average combined tax, fee, and surcharge rate on taxable voice services is 26.8%, ranging from 16.1% in Idaho to 36% in Illinois.
Check with your VoIP provider or local tax authorities for the most accurate information.
Five VoIP phone services: a cost comparison
Here’s a VoIP pricing breakdown for some of the best VoIP services out there:
| Provider | Cost per user per month (billed annually) | Free trial | Best for |
|---|---|---|---|
| OpenPhone | Starts at $15 | ✅ | Small and growing businesses that want a simple, reliable, and collaborative phone system |
| Dialpad | Starts at $15 | ✅ | Call centers and large businesses that want extensive AI features |
| Vonage | Starts at $13.99 (for teams up to 4 people) | ✅ (Free trial credits) | Businesses that want a platform with several APIs |
| RingCentral | Starts at $20 (for teams of up to 5) | ✅ | Businesses that need desk phone rentals |
| Nextiva | Starts at $20 | ❌ | Enterprise teams that rely heavily on video conference calling |
💡 Compare business phone system costs with OpenPhone’s VoIP cost comparison calculator
Before deciding on a business VoIP solution, look carefully into their contract terms. Many providers lock you into long-term contracts (think up to 36-month agreements), which can become costly if the service doesn’t meet your expectations or your needs change.
Even if you can afford your current plan, some providers might force you into a higher-tier plan with a steep price jump as you grow.
So choose a provider with scalable, flexible plans or shorter commitments to avoid unnecessary expenses.
Other hidden expenses that impact your overall VoIP cost include:
- Cancellation fees: Some VoIP providers (not OpenPhone) charge a fee if you cancel your service before the end of your contract. Others may waive the cancellation penalties if you opt for a monthly payment plan, but that’s usually more expensive than paying annually.
- Auto-renewals: Many businesses get locked into a renewed contract, forced to pay subscription fees for another term because they didn’t realize their plan auto-renews. Always check renewal terms to avoid surprise charges.
Is switching to VoIP worth it for small businesses?
VoIP is a great solution for small businesses because it’s cost-effective, scalable, and packed with advanced features that help teams work smarter.
For example, unlike traditional landlines, your team can take calls or messages on the go using any device. And because it’s easy to set up and scale, it grows with your business — whether you’re adding a single line or an entire team.
You’ll also have access to advanced features that make work easier. For example, OpenPhone offers:
- Shared numbers and inboxes: Unified communications let your team handle calls and messages together so nothing slips through the cracks.
- Automated texting features: Address customer requests and FAQs faster with pre-written templates (or snippets) and scheduled messages.
- Lightweight CRM features: Track customer interactions and information directly in your phone system to save time and improve follow-ups.
- Call recordings and voicemail transcripts: Review past conversations or skim voicemails to ensure no details are missed.
- AI call management: Keep conversations organized with smart call tagging and never miss key details with AI-generated call summaries and next steps. So your team can follow up with confidence.
- Quick setup and intuitive interface: Get your team up and running without needing IT support, costly up-front installations, or hours of training.
- Automations and scheduling: Save time by automating repetitive tasks like sending auto-replies or scheduling payment reminders.
(Show us a PBX phone system that does that, and we’ll eat our hats.)
VoIP phone systems are also highly secure, with the best providers (like OpenPhone) encrypting your business communications and data to keep it safe. It’s an extra level of added security you won’t have with traditional landlines or cellular networks.
Cut your phone costs with OpenPhone
Switching to VoIP small business phone systems offers you more than just a way to make calls. It’s a cost effective way to get a solution built for flexibility, scalability, and modern business needs.
Our plans start at $15 per user per month, paid annually — and you won’t be forced to upgrade to a higher-tier plan just because your team expands.
Check out OpenPhone’s pricing page to find the plan that’s right for your business.
FAQs
For most small businesses, an average broadband plan is enough, but if you have a larger team or experience slow speeds, you may need to upgrade to ensure high call quality.
According to the Federal Communications Commission (FCC), you should have a minimum of 0.5 Mbps download speed for VoIP to function smoothly. Try a VoIP speed test to see if you need an upgrade.
In most cases, yes. VoIP eliminates many upfront and ongoing costs associated with traditional phone systems, like installation, maintenance, and copper wiring.
With OpenPhone, for example, you can get started with $81.50-$83 per month for a team of five, along with a one-time US carrier registration fee of $19 — making it a cost-effective choice for small businesses.
VoIP providers bill the same way many other service providers bill: a monthly or annual bill that can be paid online through your customer portal. In many cases, you’ll add your payment information when you sign up, and your payment will be automatically deducted from your account each month (or year, depending on your preference).
OpenPhone is the most affordable VoIP solution for small businesses because it offers a full-featured phone system, with VoIP plans starting at $15 per user per month, including:
One new local or toll-free phone number per user
Free calls and messages to US and Canadian numbers
Team collaboration tools like shared phone numbers, internal threads, pre-written message templates, and inbox viewers!
Call management features to manage your incoming call volume, including simultaneous ring and ring groups, phone menus (IVR), and backup call forwarding options
Thousands of integrations that help businesses stay efficient
VoIP services require an Internet connection to use them, so you might face challenges with calling customers in areas with spotty data coverage. However, compared to traditional landlines, VoIP is far easier to scale, more flexible, and doesn’t require expensive wiring or maintenance, making it a practical choice for most businesses.
