What Does a VoIP Phone System Really Cost?

Let’s walk through each part, so your team can budget accurately.

Table of Contents

1. What One-Time and Monthly Costs Should I Expect With a Business VoIP System?
2. How Do Traditional Phone System Costs Compare to VoIP Over 3 Years?
3. Why Do Businesses Choose VoIP Beyond the Cost Savings?
4. The Bottom Line: VoIP Makes Financial Sense
5. Explore Frequently Asked Questions

What One-Time and Monthly Costs Should I Expect With a Business VoIP System?

A typical VoIP system costs $20–$60 per user per month, but your full investment includes both one-time setup expenses and recurring service fees. Understanding both helps you budget accurately and avoid surprises.

One-Time Setup Costs

Most businesses will have at least a few upfront expenses, depending on whether they need new devices or network upgrades.

Common Hardware Costs

• VoIP desk phones: $80–$400 each

• Headsets: $30–$300

• Conference phones: $200–$1,000

• Network equipment: Routers, switches, cabling upgrades

• Optional setup: Auto-attendants, call queues, ring groups

Professional Services

• Installation: $200–$600

• Network assessment: $300–$1,000

• Staff training: Included with some providers; others charge $500–$2,000

Pro Tip: Some providers bundle implementation or onboarding into your agreement, always ask before you sign.

Monthly Recurring Costs

This is the part most businesses focus on. VoIP providers generally offer tiered service plans with different feature levels.

Typical Monthly Pricing

• Basic plans: $15–$30/user/month

• Mid-tier or advanced plans: $30–$60/user/month

• Enterprise-level features: $50–$100+/user/month

And because VoIP runs entirely over your internet connection, you’ll want to ensure your bandwidth can support high call volume and other cloud-based tools.

Estimated Internet-Related Costs

• Bandwidth upgrades: $50–$500/month (based on company size + location)

Hidden or Not-So-Obvious Costs

Even reputable providers may include fees in the fine print. Watch for:

• Contract cancellation penalties

• Activation or setup fees

• Charges for premium features

• Tiered support (basic vs. priority)

• International or toll-free per-minute costs

How Do Traditional Phone System Costs Compare to VoIP Over 3 Years?

For most businesses, the biggest budget question is long-term cost. Here’s a realistic three-year comparison for a 20-person business choosing between a traditional PBX system and modern VoIP.

What’s the Actual Savings Over 3 Years?

Switching to VoIP can save a 20-person business $13,800–$44,200 over three years, savings that can be reinvested into growth initiatives, marketing, hiring, or technology upgrades. And those financial gains don’t even account for the added flexibility, mobility, and operational efficiency that VoIP brings to your business.

Why Do Businesses Choose VoIP Beyond the Cost Savings?

VoIP delivers far more value than a lower phone bill. It strengthens reliability, supports growth, and improves how your team communicates every day.

Business Continuity

• Auto-routes calls during outages or office closures

• Keeps customers connected to your team from anywhere

Easy Scalability

• Add users or locations in minutes

• No technician visits, rewiring, or complex hardware requirements

Productivity & Time Savings

• Remote troubleshooting resolves issues faster

• Integrates with CRMs, calendars, and email for smoother workflows

• Smart routing and mobile apps improve customer response time

Avoiding Hidden Cost Pitfalls

• Ensure proper implementation to protect call quality

• Confirm support availability before signing

• Assess network bandwidth needs upfront

• Choose features you’ll actually use to avoid unnecessary spending

The Bottom Line: VoIP Makes Financial Sense

While exact pricing will vary based on your specific business needs, the takeaway is clear: business VoIP phone systems offer substantial savings over traditional phone systems while providing enhanced features and flexibility.

Switching to VoIP can save your business thousands per year while giving you a modern, flexible communication system that just works.

But here’s the catch: Not all providers are created equal. You want someone who takes the time to understand your business and tailor a solution that fits without unnecessary fluff or unexpected fees.

Ready to see what VoIP could look like for your business? Book a quick web meeting with our team and get a personalized quote.