How much does VoIP service cost?

Get to know the cost of owning a VoIP service along with their features and benefits.
A business owner testing voip service call feature.

If you know anyone who’s still using a landline or an on-premise phone system for their business, the first question that will (or should) probably come to your mind is "Why?"

After all, they’re paying more for a less effective product—there are better options, where they’re a small to mid-sized business,

There are secure, reliable, and cheap VoIP services out there—that are infinitely better than old-school phone systems

It’s not a question of which one is better (traditional vs VoIP) anymore. What they should be asking are two simple questions:

  • How much would it cost to move to a VoIP phone system?
  • How much would it cost in the long run?

Do you know the answers? Let’s find out.

How much does VoIP cost?

VoIP costing is divided into two stages:

  • Costs during installation
  • Costs after installation

During the VoIP installation stage

There’s a kind of  stigma that comes with the word “installation.” For a lot of people, this is when you’d have to spend a lot of money for hardware and equipment or software with licenses—in many office-related systems, you’d have to spend for both

The old days of on-premise phone systems

There’s a reason why you’ll usually see only big companies and corporations using on-premise VoIP phone systems. We’re talking about multiple bulky servers, PBX boxes— and a lot of wires.

Then there are the people needed to actually install it. You can’t do it by yourself, so you’ve got to hire experts to do it for you. Which means spending even more money.

You haven’t used the phone system yet, and you’ve already spent thousands of dollars.

Moving to the cloud

The good news? That doesn’t have to be a thing anymore. The best VoIP phone systems are cloud-based, meaning the service is hosted in a secure data center by the provider, and can be delivered to your company via the internet.

You don’t have to buy any hardware or equipment—the VoIP provider takes care of all that. All you need is a stable internet connection.

Colleagues doing video conferencing on work

Factors to consider during the installation stage of VoIP

The truth is that “installing” a hosted VoIP phone system is almost entirely free. Anything you might have to pay for isn’t really for installation. They’re for add-ons like phone numbers and VoIP phones.

To help you understand the potential costs, here are some of the things you need to consider when installing voice over IP technology.

Do I have to pay for phone numbers?

Most providers give you a free local or toll-free number when you sign up for their VoIP phone system. If you want more business phone numbers, you’ll have to buy them (which you can usually do anytime from your VoIP account). These are normally charged per month, and will be included on your monthly bill.

If you have an existing phone number, you can also port or transfer it to your new VoIP phone system—free of charge. You can ask your provider about their number porting process.

How much is the actual installation?

Well, it’s free because (again) there’s no actual “installation” that needs to happen. The entire process goes like this:

  1. Sign up
  2. The VoIP phone system is activated
  3. The end

Yep, you read that right. It’s that simple.

Once your account is activated, all the features included in your VoIP plan are activated too. Now you can start configuring the system based on how you want it to work.

What you’ll mainly spend money on will be towards making sure you have an internet connection stable enough to handle the number of VoIP users in your company.

Building a robust company local area network (LAN) can really help you manage VoIP traffic better in your physical office. (But you should invest in that regardless of whether you’re getting VoIP or not.)

You may also want to invest in QoS (quality of service) routers, which are routers you can set to prioritize VoIP calls over other internet traffic like downloads and streaming. This is optional, though.

Do I need to hire someone to set up and configure the service?

You don’t need an expert to set up and configure your VoIP phone system (or at least, you shouldn’t). In fact, you don’t need any special IT skills. You can simply go to your online account’s dashboard to set it up. You can even grant administrator privileges to trusted employees so they can help you.

From your admin dashboard, you can do things like:

  • Set up how your auto-attendant answers and directs calls
  • Set company greetings
  • Add, delete, and assign phone numbers and virtual extensions to people or departments
  • Define the roles and permissions of each user

You can do even more from the dashboard, depending on your provider and account.

Top VoIP providers will go the extra mile—they’ll typically also help new customers set the system for no extra charge. So, if you need a walkthrough, contact your provider and they should be happy to help.

Various VoIP-enabled devices

Do I need a special phone for VoIP?

Nope! VoIP phone systems will work on your laptop or mobile device. You just need to download the softphone app and install it on your computer or smartphone.

But if you’re looking for something a little fancier, there are devices that are specially designed to enhance the VoIP experience. The cost can range from as low as US$60 to as high as US$1,000, depending on the features. The most popular brands are Polycom, Cisco, and Yealink.

There are different types that you can choose from like:

  • Desk IP phones – They look like regular phones but are actually special computers that help you make VoIP calls. The best ones support HD call quality, and some even have LCD screens for special functions like caller ID. If you want the familiarity of regular landlines while getting the best VoIP experience, then you should look into getting desk IP phones.
  • Conference phones – Also called starfish phones because of their shape, these are VoIP phones with a speaker and a mic with a large area of audio pick up. These phones are perfect for facilitating conference calls.
  • Receptionist IP phones – These are desk IP phones with an attached module used for easy manual routing of calls.

As you can see, you’re basically getting your VoIP phone system installed for free—all you need to pay for are additional phone numbers, VoIP devices, and a stable internet connection

The VoIP post-installation stage

Once your VoIP phone system is installed and configured, it’s time to use it. Because VoIP servies are usually subscription-based, you’ll be charged a regular fee until you decide to cancel.

Depending on your provider and the plan you choose, you can be billed monthly, quarterly, bi-annually, or annually.

(Most subscribers choose a per-month bill for budget flexibility.)

How much is VoIP monthly?

One thing you should know is that most VoIP providers charge on a per-user per-month basis instead of charging you for the collective minutes spent by your whole business.

On average, the monthly per-user charge is around $25. This normally includes unlimited outbound calling (U.S. and Canada), toll-free minutes, and basic features like auto-attendant, call forwarding, call screening, and caller ID.

Aside from the features above, RingCentral has plans that include unlimited business SMS, virtual fax, and video meetings. Higher tiered plans have even more toll-free minutes, a higher number of allowed video conference participants, and additional features like automatic call recording and single sign-on (SSO).

How much are long-distance call charges?

Most VoIP providers offer unlimited calling across the U.S. and Canada at no extra charge. For businesses that make a lot of outbound calls, this is pretty much a must-have. That’s especially important because traditional carriers automatically charge you long-distance fees when calling phone numbers with different area codes. Voice over IP nips that in the bud.

But what if you’re calling outside those countries?

Like regular carriers, VoIP providers have international rates. However, VoIP international call rates are typically lower.

Basically, with VoIP:

  • calls within the U.S. and Canada are considered local calls
  • calls outside the U.S. and Canada are still considered international calls, but the rates are dramatically lower

RingCentral has different international calling plans you can choose from. You can pay-as-you-go with international call credit bundles, or get an unlimited international call plan if you’re always calling outside the U.S. and Canada.

What are toll-free minutes?

If you plan to build a national presence, a toll-free number is a must.

Toll-free numbers are phone numbers with distinct three-digit prefixes (800, 888, 877, 866, 855, and 844) that anyone in the U.S. and Canada can dial without being charged for the call. This allows your business to be accessible to almost anyone for free (on the part of the caller, at least).

This is, of course, where toll-free minutes come in. You usually have an allotted number of toll-free minutes per month included on your VoIP plan. Toll-free calls are automatically deducted from these. When you exceed the allotted minutes, you’ll be charged accordingly.

RingCentral has affordable high-volume toll-free minute bundles that you can purchase on top of the toll-free minutes included in your subscription plan. You can change your bundle anytime to meet your business needs.

What is the cost of getting technical support?

With traditional on-premise systems, repair and maintenance requires expensive expert help. You can either hire a full-time team or you can hire contractors, but either way, you’ll be spending thousands of dollars per year. That doesn’t even include the hardware (parts and replacements) and software (new upgrades and updates) needed by the system.

With VoIP, the management and maintenance of the system falls on the provider, not you. This includes all updates and upgrades, which will automatically be rolled out to all customers at the same time. In other words: no extra fees.

When you encounter a problem, just call your VoIP provider to get help from their expert technical support rep for free.

Basically, you can use the service without worrying about having to deal with technical issues— you can always get help from your provider.

RingCentral has an award-winning customer support team that you can call 24/7. And it’s not just for technical issues; you can also ask about best-practice recommendations for your VoIP phone system.

How much does a VoIP service cost?

It varies by provider, but the structure is usually similar. Let’s take RingCentral as an example. It would depend on:

  • the plan you choose
  • the number of telephone numbers you got
  • the VoIP phones you bought or rented, and
  • the toll-free minutes you need

Let’s see how this works out.

Say you’re a 10-user company. You need two toll-free company phone numbers, but you don’t need VoIP phones for them (since they can just use the RingCentral app on their cell phones). Let’s say you chose RingCentral Standard and need 2,000 toll-free minutes per month. How much would you spend monthly?

Breakdown of costs for RingCentral Standard, *based on current plans and pricing; may be subject to change
Cost Quantity Price per item Total
RingCentral Standard Plan Quantity10 users Price per item$34.99 per user Total$349.90
Toll-free numbers Quantity2 telephone numbers Price per item1st telephone number = free
2nd telephone number = $4.99/month
Total$4.99
Softphone Quantity10 users Price per itemRingCentral app is free TotalFree
Toll-free minutes Quantity2,000 minutes Price per item1st 1000 minutes = included in the monthly fee
2nd 1000 minutes = $29.99 per month
Total$29.99
Total cost per month $384.88
*based on current plans and pricing; may be subject to change

As you can see, you’ll only be spending $384.88 per month to equip your 10 employees with an industry-leading VoIP phone system

Compared to on-premise systems, which would cost thousands of dollars to set up and a couple of hundred more to maintain each month, you’re getting a lot more bang for your buck.

What are you getting with RingCentral?

When you subscribe to RingCentral, you get a secure and reliable cloud communications solution that includes enterprise-grade VoIP, cloud PBX, business texting, internet fax, online meetings, and over 50 other communications and collaboration features.

Try it out with a free trial and get a free local or toll-free number—no installation fees. Just subscribe, then use!

 A virtual phone system is mobile and desktop

RingCentral MVP™* plans for your small business

PAY ANNUALLY AND SAVE UP TO 40%

Number of users
1-20
21-50
51-99
100-999+
Need more users?
Call:

Standard

Message, Video, Phone
$27.99 off
$27.99
/user/month **
Everything in Essentials, PLUS
  • No limit on number of users
  • Business phone numbers in over 100 countries
  • Unlimited internet fax
  • Unlimited audio conferencing
  • Video meetings with up to 100 participants
  • Up to 24-hour meeting duration
  • Quality-of-service reports
  • Popular integrations including
    Microsoft 365, Google Workspace, Slack,
    and more
  • 24/7 support
Best value

Premium

Message, Video, Phone, Open API

$34.99 off
$34.99
/user/month **
Everything in Standard, PLUS
  • Automatic call recording
  • Single Sign-on
  • Multi-site admin and management
  • Up to 8-digit extensions with site codes
  • Hot desking
  • Advanced call handling including whisper, barge, and more
  • Video meetings with up to 200 participants
  • Real-time analytics
  • Popular CRM integrations with Salesforce, Zendesk, and more
  • Industry-specific integrations with Canvas, Smarsh, and more
  • Developer platform and custom integrations

Ultimate

Message, Video, Phone, Open API
$49.99 off
$49.99
/user/month **
Everything in Premium, PLUS
  • Device status reports
  • Device status alerts
  • Unlimited storage***

Compare plans

Have a question? Call
(800) 574 5290
Not available
Essentials
Buy now Try free
Standard
Buy now Try free Contact sales View Demo
Best value
Premium
Buy now Try free Contact sales View Demo

Ultimate

Contact sales Contact sales View Demo
Pricing
Annually: $19.99/user/mo
Monthly: $29.99/user/mo
Annually: $27.99/user/mo
Monthly: $37.99/user/mo
Annually: $34.99/user/mo
Monthly: $44.99/user/mo
Annually: $49.99/user/mo
Monthly: $59.99/user/mo
Business phone or toll-free numbers
One phone number for calling, team messaging, and video meetings access.
Each user gets a dedicated phone number at no additional cost. Essentials edition doesn't include video meetings.
Included in plan
Included in plan
Included in plan
Included in plan
Toll-free minutes
Inbound Toll-free minutes
Included minute allotment varies by tier. Toll-free minutes are pooled across the account, regardless of number of lines. Additional minutes available for purchase.
Learn more
Included minute allotment varies by tier. Toll-free minutes are pooled across the account, regardless of number of lines. Additional minutes available for purchase.
Learn more
Included in plan
Included in plan
Included in plan
Included in plan
Unlimited calls within the US/Canada**
Unlimited calling/phone calls within the US and CA. Plus, choose from affordable and convenient international calling plans that fit your business. Terms and conditions may apply.
Learn more
Included in plan
Included in plan
Included in plan
Included in plan
Enhanced Business SMS
Designed to meet latest carrier requirements and improve deliverability. Included SMS allotment varies by tier. Additional SMS available for purchase. Available upon request.
Included in plan
Included in plan
Included in plan
Included in plan
Voicemail-to-text
Automatically convert voicemail messages into text form so users can screen messages easily and respond to the most important call first.
Included in plan
Included in plan
Included in plan
Included in plan
Visual voicemail and voicemail-to-email
Access voicemail messages from your desk and mobile phones, email, desktop app, and online account.
Learn more
Included in plan
Included in plan
Included in plan
Included in plan
Team messaging
Collaborate more effectively with colleagues, clients, and contractors with team messaging, task assignment, calendar sharing, and more. Also, utilize out-of-the-box integrations with Jira, Asana, Box, Google Drive, OneDrive, and more.
Learn more
Included in plan
Included in plan
Included in plan
Included in plan
Document sharing
Access documents and files stored on your computer or your Google Drive, Box, OneDrive, and Dropbox accounts and easily share them with your team members.
Included in plan
Included in plan
Included in plan
Included in plan
Call management and phone system
administration
Sophisticated call management, enabling you to configure your phone system across the entire company, regardless of location or device. Optimize communication with custom admin and user configurations online or using the mobile app.
Call management features include:
  • Answering rules
  • Call forwarding
  • Call transfer
  • Call screening
  • Call flip
  • Call logs
  • Presence
  • Notifications
  • Shared lines*
  • Call park
  • Intercom*
  • Paging*
*Not available with Essentials.
Learn more
Included in plan
Included in plan
Included in plan
Included in plan
Mobile apps for iOS and Android
Whether you're an Apple or Android user, you can use your smartphones and tablets to make and receive calls, join and host meetings, team message coworkers and partners, send and receive faxes and texts, set up and join conferences, and configure phone system settings, notifications, and voicemail.
Learn more
Included in plan
Included in plan
Included in plan
Included in plan
High-definition (HD) voice
To consistently deliver the highest HD quality possible, RingCentral utilizes the Opus Interactive codec for audio and video, as well as the G.722 codec for audio.
Learn more
Included in plan
Included in plan
Included in plan
Included in plan
Call log reports
Get a complete record of all your inbound and outbound calls and faxes. View the name of the caller, the number or extension dialed, as well as the time, date, and duration of the call.
Learn more
Included in plan
Included in plan
Included in plan
Included in plan
Phone rental options: desk and
conference phones
Rent any desk phone or conference phone for a low monthly price.
Contact sales for details and pricing.
Learn more
Included in plan
Included in plan
Included in plan
Included in plan
Add Video Pro and Video Pro+ users
Administrators can add Video Pro and Video Pro+ users from within MVP.
Available as an add-on
Included in plan
Included in plan
Included in plan
Unlimited internet fax
Send and receive faxes from your computer, mobile device, Microsoft Outlook, cloud storage providers (such as Dropbox), and more.
Learn more
Available as an add-on
Included in plan
Included in plan
Included in plan
Unlimited audio conferencing
Host an unlimited number of audio conference calls, with up to 1,000 attendees per conference. Each user gets unique host and participant access codes.
Available as an add-on
Included in plan
Included in plan
Included in plan
Video meetings and participants
Hold video meetings with screen sharing, in-meeting public and private chat capabilities—anytime, anywhere, on any device.
Maximum number of participants varies by the video platform:
Premium with RingCentral Video (up to 200)
Standard with RingCentral Video (up to 100)
Available as an add-on
Up to 100 people
per video meeting
Up to 200 people
per video meeting
Up to 200 people
per video meeting
High-definition (HD) video
RingCentral delivers crystal-clear HD quality video and voice.
Learn more
Available as an add-on
Included in plan
Included in plan
Included in plan
Quality-of-service reports
Gain the ability to proactively review overall RingCentral system health and diagnose quality issues impacting users. A holistic overview of quality measured by location, endpoint, codec, ISP, and more enables easier monitoring and faster troubleshooting.
Learn more
Available as an add-on
Included in plan
Included in plan
Included in plan
Popular integrations including Microsoft 365,
Google Workspace, Slack, and more
RingCentral offers the largest ecosystem of integration apps in the communications and collaboration space to maximize productivity and efficiency. Get integrations for bots, AI, analytics, archiving, automation, productivity, and more.
Learn more
Available as an add-on
Included in plan
Included in plan
Included in plan
24/7 support
Unlimited chat and phone support.
Available as an add-on
Included in plan
Included in plan
Included in plan
Multi-level auto attendant
Answer callers automatically with customized greetings, and ensure every call is directed to the right employee or department.
Learn more
Auto-attendant is a virtual receptionist service that greets your callers and routes them to employees, departments, or to any phone in the world (i.e. an employee's mobile phone, an office deskphone, or a virtual phone on the RingCentral app).
With the multi-level auto attendant feature, you can create rules to handle incoming calls for multiple office locations or language selections. For example:
“Press 1 for our New York office. 2 for Chicago office. 3 for Los Angeles office.” OR
“Press 1 for English. Marque 2 para Español.”
Available as an add-on
Included in plan
Included in plan
Included in plan
Professional implementation
Get the most out of RingCentral with a portfolio of professional and personalized services, ranging from planning, designing, and implementation to project management, ongoing support, and consulting.
Learn more
Available as an add-on
Included in plan
Included in plan
Included in plan
Call recording
Automatic call recording: Set your RingCentral phone system to automatically record inbound and outbound calls for individual users or inbound calls for departments.
On-demand call recording: Allows Users to manually record phone calls anytime using an IP Phone provisioned with RingCentral, Forwarding Number, or RingCentral Phone for Mobile.
Learn more
Available as an add-on
On-demand
Automatic
Automatic
Compatible with RingCentral Rooms™ (add-on)
Turn any space into a conference room.
Learn more
Available as an add-on
Included in plan
Included in plan
Included in plan
Compatible with RingCentral Room Connector (add-on)
Room Connector allows room conferencing systems on legacy hardware with SIP-based endpoints (third party endpoints) to connect and access video meetings on RingCentral.
Learn more
Available as an add-on
Included in plan
Included in plan
Included in plan
Single Sign-on
Users can log in to RingCentral automatically with their corporate credentials. Reduce the IT cost of assisting in password recovery and benefit from a central authentication point that securely accesses your RingCentral service from any device.
Learn more
Available as an add-on
Available as an add-on
Included in plan
Included in plan
Multi-site admin and management
Get the flexibility to manage and support your branch offices based on their unique operational needs.
Learn more
Available as an add-on
Available as an add-on
Included in plan
Included in plan
Up to 8-digit extensions with site codes
Simplified intra-site dialing for large multi-site customers.
Available as an add-on
Available as an add-on
Included in plan
Included in plan
Hot desking
Allows users to log in to shared phones to access their own RingCentral extensions, voicemail and greetings, and other features.
Hot desking lets employees share office desk phones while keeping their separate extensions, greetings and voicemail access.
It enables companies to save costs of desk phones while still letting their employees remain productive.
Available as an add-on
Available as an add-on
Included in plan
Included in plan
Advanced call handling including whisper, barge, and more
Advanced call management controls (monitor, whisper, barge, takeover) to allow authorized users to listen in on employee calls with clients to monitor the conversation, provide coaching, and facilitate discussion.
Other features include overflow call queues, user groups, and role-based access control with customized roles/permissions.
Available as an add-on
Available as an add-on
Included in plan
Included in plan
Real-time analytics
Gain real-time insights into your RingCentral system and gather business-relevant data, alerts, and reporting metrics.
Available as an add-on
Available as an add-on
Included in plan
Included in plan
Popular CRM integrations with Salesforce, Zendesk, and more
Bring the functions and features of RingCentral MVP into your business apps such as Salesforce, Zendesk, Microsoft Dynamics, ServiceNow, etc.
Learn more
Available as an add-on
Available as an add-on
Included in plan
Included in plan
Industry-specific integrations with Canvas, Smarsh, and more
Bring the functions and features of RingCentral MVP into your vertical's business apps such as Canvas, Smarsh, etc.
Learn more
Available as an add-on
Available as an add-on
Included in plan
Included in plan
Developer platform and custom integrations
RingCentral APIs let you create your own custom applications and seamlessly integrate business communications into your key business processes, so you can automate workflows, drive efficiency, and gain valuable insight from communications data.
Visit Developer Portal
Available as an add-on
Available as an add-on
Included in plan
Included in plan
Device status reports
Monitor hard phone registration status globally and gain visibility into your devices' history.
Available as an add-on
Available as an add-on
Available as an add-on
Included in plan
Device status alerts
Set up automated monitoring rules and receive notifications when devices are offline.
Available as an add-on
Available as an add-on
Available as an add-on
Included in plan
Unlimited storage***
Store an unlimited* amount of documents, spreadsheets, presentation files, contracts, invoices, images, videos, and recordings.
*Retention period applies.
Store an unlimited* amount of content within your RingCentral app. This could be documents, spreadsheets, presentation files, contracts, invoices, images, or videos that you send as attachments within messages; or these could be the recordings of your video meetings.
*Retention period applies.
Available as an add-on
Available as an add-on
Available as an add-on
Included in plan

Message. Video. Phone. Together.

A seamless solution to unleash the power of cloud business communications.

Sign up to get quick access to a full product demo

*Required

By clicking the button above, you consent to receiving calls and emails from RingCentral. Calls may be connected using automated technology. RingCentral will not rent or sell personal information about you.
Thank you for your interest in RingCentral
A sales advisor will contact you within 24 hours. If you'd like to speak to someone now, please call (800) 574 5290
Important details and disclaimers