Learn how much you’ll spend on business phones.

There are many reasons to shop for a new phone system: your current system may not meet your needs, you need additional features, or you just want to see if you can get a better price. When researching business phones, it can be extremely frustrating to be met with endless request forms and lengthy sales calls before you can find out how much you can expect to spend. That’s why we want to break down what goes into a phone quote and help explain the cost.

Want to skip the explanation? Check out our instant quote builder to get your estimate with just a few clicks. 

Calculating Business Phone Cost: Hardware + Service

Phone Equipment Costs

A business voice calling plan consists of two main parts: the hardware and the service. You may have hardware that is compatible with a new service provider, cutting this cost. But if you’ve had the same system for years, it will likely be time to upgrade. Getting updated phones provides clearer call quality, newer features, and more reliability with fewer issues. You can either lease or purchase your phones.

The first step to calculating price is to add up the number of phones you need. You can see our full telephone suite with pricing information on our Hardware page. The most common phone our customers choose is the Polycom VVX 350, a reliable phone perfect for small and medium businesses. We offer the VVX 350 for $169 or $10/month per phone. If you have a company with 10 employees, you’ll pay $1690 one time up front to purchase the equipment or add $100/month to your bill to lease the phones.

Of course, if you’re only using a softphone, or a mobile app for your business phones, you won’t have any phone equipment costs.

Man tapping on mobile phone

Phone Service Costs

The monthly service cost fluctuates the most between providers. Monthly service prices can fluctuate based on contract length, number of phones in service, features, and many other variables. For instance, a phone provider may advertise one low cost as the monthly fee, but you later learn that you only access that rate if you sign onto a multiyear contract and pay for a year up front. Or, you won’t get access to basic features that you end up paying extra for. Beware of drastically lower rates – you often get what you pay for.

When comparing phone providers, pay attention to the small print on the bottom of the plans pages. Getting the lowest price isn’t the best way to shop for business phones. Rather, you want to find the best match for you based on features, support, and service.

Much like with the equipment, service cost is usually calculated per phone. Our most popular package, the Pro Plan, costs $33.99 per phone per month. For a business with 10 users, they can expect $339.90 per month for the service plus tax.

Fees + Taxes

The final area to watch for are additional fees. The most common one is for installation, also known as an implementation fee. Many low-cost phone service providers will charge extra to install your phone system, even when you only need to plug in your phones and there’s no on-site installation by the provider. Early in the process, ask each provider that you are researching how much you need to pay for installation and what other costs you can expect. Some providers like Vonix do not charge for installation.

One area that will be the same across providers is in government fees and taxes. Your state and federal government, including the FCC require additional taxes on telephone service. When added together, you can expect about 15-20% tax on your phone service plus your local sales tax applied to any equipment you buy or rent. This really adds up, so it helps to be aware before getting too far in the process to know what to expect.

business men calculating on a spreadsheet

Example Business Phone Service Price

Let’s say we have a business signing on to our Pro plan with 25 employees that need phones. To keep it simple we’ll say they’ll all use leased Polycom VVX 450 phones, but in real life you’ll want to choose the right phone hardware for each user.

25 x $33.99 Pro Plan = 849.75
+ 20% communications taxes = $169.95
Service total: 1,019.70

25 x $12 per phone = $300
+ 8% sales tax = 24
Hardware total: $324.00

Monthly business phone total: $1,343.70

It doesn’t need to be complicated to find out how much your business phone service will cost. Use our price calculator to get your instant quote.