VoIP Pricing: How much does VoIP cost for businesses?

Every company in your network has a different idea of what phone provider to use. Between comparing VoIP (Voice over Internet Protocol) rates and researching the benefits of still having a traditional landline, it’s easy to feel lost. 

As a business owner, you know the importance of a budget to allow your company to grow and invest in areas that matter to your business—all with a cost-effective approach. 

Given that the average Canadian spends around $35 per month on cellphone services—and that businesses require significantly more lines and data—carefully evaluating VoIP pricing in this context is crucial, right?  

Especially when you keep hearing about the low costs of VoIP business phone systems, additional add-on services, and the features most providers offer.  

A lower-cost alternative to the traditional phone systems of the past almost sounds too good to be true. 

But it isn’t!  

VoIP service providers offer many of the same features—or more—as traditional systems, and they can integrate right into the processes you’re already using, including many of the softphones, hardware (like smartphones, handsets, headsets and dialpads), and communication apps you’re already using.  

To help with your decision-making process, this guide will break down everything you need to know about the business communication costs involved with VoIP technology. 

How much does VoIP cost?  

Let’s take a look at some of the most common VoIP providers on the market today:  

Table: Estimated Monthly VoIP Cost for a Company with 25 Users 

*Monthly cost calculation:  

• VoIP.ms: Company internal figures 

• Competitors: Price per user times 25 as of February 2025 

VoIP cost calculator 

It’s common to look at the affordability aspect of VoIP and still be unsure about the costs and how much it will affect a business budget.  

Using a VoIP cost calculator can help setting the score and understanding how much your company will spend on a monthly basis. 

Business VoIP Pricing Breakdown  

VoIP providers have different charging models, but most charge on a per user basis.  

The average VoIP cost for most high-quality providers averages $25 per month per user.  

But when you consider that your VoIP solution needs to match your budget, Pay-as-You-Go VoIP systems—in which you pay for VoIP calls as you make them—might be a better option.  

With VoIP.ms, you can achieve significant savings with a monthly subscription policy.  

For example: For a business with 25 users using the VoIP.ms pay-as-you-go model, the average monthly cost of signing up with us comes out to less than $1 per user—that’s 25 times less than typical costs with other providers! 

Of course, additional features, lines and hardware will cost you extra and add to your billing.  

Depending on your telecom or VoIP provider, the business model they have, and their products and services peculiarities, an IP Phone might be optional.  

That means you could save even more by opting for low-cost alternatives, such as softphone apps.  

These applications can be used on mobile phones, laptops, and tablets, so you have your phone service with you at all times.  

Let’s break down the costs even further into two categories:  

1. Recurring expenses  

2. One-time costs   

RELATED: 4 Signs You Need to Upgrade to a VoIP Phone System 

Recurring expenses for VoIP plans 

Recurring expenses can include: 

1. Your monthly subscription 

2. Additional lines or users 

3. Special or add-on features 

Monthly subscription  

Most VoIP providers will charge you monthly (or annually, depending on the provider) for each active line you have.  

These are the most basic and necessary charges of a VoIP phone system – these costs provide you with the basic functionalities, so your business is up and running smoothly. 

Additional lines or users 

More lines equal higher billing.  

If your company requires more than one user or line (let’s say you want each employee to have their own extension), you will pay extra regardless of the provider’s business model. Subscription or pay-as-you-go, adding numbers comes with costs.  

Here’s how those additions can be charged:  

• Per-user: Perfect for companies with a defined headcount looking to set up unified communications. 

• Per-line: Ideal for businesses with an intense call routine that requires multiple phone numbers and lines, like a call center or large customer care team. 

But you don’t have to commit to per-user or per-line subscriptions with all providers.  

In fact, at VoIP.ms customers can add as many users or lines as they want, without incurring any additional costs. (That’s money-saving good news!)  

Learn more about our business phone system service options. 

Special or Add-on Features 

VoIP providers usually offer bundles with different costs. Lower-priced bundles have basic features, such as Call Forwarding, and as you upgrade prices can go up as well.  

If you choose a higher tier bundle—or if you decide on adding new features independently—keep in mind those choices will add to your billing. The new price will also depend on the nature of each new feature:  

• Microsoft Teams Integration    

• International calling fees 

• Digital Receptionist (IVR) 

With VoIP.ms, however, you get all features included… and you only pay as you use them. No need to settle on paying monthly subscription fees for rarely-used features.  

One-Time Costs 

In the long run, VoIP costs might be lower than a traditional phone system, but at first, you might need to spend a little more to set your system in place. 

If you don’t have this already, you’ll likely need to also invest in: 

1. Hardware 

2. Number porting 

3. E911 activation 

4. Installation and setup 

Hardware 

If you need desk phones or headsets to create your work extensions in an office, buying the equipment might be a one-time higher expense for companies.  

Number porting 

Number porting (also known as number transferring) can be offered for free as a bonus or charged depending on the location where the original number is from.  

Each provider has its own rules regarding portability so make sure to check before signing up to ensure lower or no additional costs here.  

E911 activation 

When using VoIP phones, you want to ensure that calling emergency services is possible if needed. That’s why E911 is a common feature for Voice over Internet Protocol providers.  

In this case, an activation fee will need to be paid and monthly installments will also be charged for each DID (Direct Inward Dialing) number.   

Installation and set up  

Small businesses can do their own VoIP set-up, but if you’re relatively new to the technology, relying on specialized help might be best.  

If you’re opting for an on-premise PBX system, installation and set-up costs will not only be necessary, but they might be on the higher end. 

However, if you choose a Bring-Your-Own-Device provider like VoIP.ms, when compared to traditional phone providers, VoIP prices can add up to 90% in savings for companies! 

Is VoIP cheaper than a landline? 

Yes, VoIP phone systems are cheaper than traditional phone services for a number of reasons, including: 

1. Adaptability 

2. Low Installation Fees 

3. Flexibility 

4. Cheaper add-ons and integrations 

5. Affordable international calling   

 1. Adaptability  

VoIP services can adapt to your company size and usability, especially with Pay-as-You-Go models, when you pay only for what you use, be it phone calls or advanced features. 

2. Low Installation Fees 

Traditional landlines also rely on extensive installation costs and processes and usually require additional hardware. 

3. Flexibility 

If your business requires flexibility – say, a Financial Institution that often relies on travelling to meet clients or a Real Estate office that manage realtors across the city or different states – traditional phone lines might not be a good deal, since they are mostly local, fixed lines.  

This means you can’t take your number with you if you have to change things. That’s no good! 

4. Cheaper add-ons and integrations 

While add-ons and integrations (such as a Microsoft Teams Integration) might cost your company more and add to your monthly VoIP service billing, those features are usually costly—or even inexistent—when it comes to landline or conventional phone systems. 

5. Affordable international calling 

If your business deals with clients or collaborators living in different parts of the planet, international calling is a must.  

And, as you can guess, fees for this type of call can be extensive and downright infeasible if coming from traditional providers. 

RELATED: 5 Strategic Advantages of Adopting a VoIP Phone System 

Start saving now with VoIP rates 

Every business needs a good communication system to ensure growth and optimal daily operations. However, investing in a conventional provider might not be the best solution. 

VoIP pricing offers an affordable and growth-friendly option that comes with lower calling rates and different features you can add as needed.  

Between monthly subscriptions and pay-as-you-go models, you can choose the one that best matches your budget and create a tailored solution for your business and market. 

Creating an account with VoIP.ms and browsing our solutions (it’s free!) is one of the best ways to explore VoIP services and offerings at no risk.  

To get a full look into what you can accomplish with VoIP.ms, check out our transparent and hassle-free VoIP pricing. 

And if you still have questions, get in touch with our Sales Team.  

An expert will reach out to answer your questions and guide you through the process of choosing the best plan and features for your business.  

FAQs about VoIP Pricing for Businesses 

Below, we tackle a few common questions about VoIP pricing for small to midsize businesses, including: 

1. What are some of the hidden costs of VoIP? 
2. Is VoIP worth the cost? 

Have a question that you don’t see answered here? Contact our Sales Team to get free support. 

The hidden costs of VoIP 

VoIP is known for its cost savings approach, but it’s important to keep in mind that there are extra costs that can impact on your budget.  

Here are some of the “hidden” costs of VoIP to watch out for:  

1. Internet Costs 

2. CRM and Other Integrations 

3. Taxes and Fees 

4. Additional features 

1. Internet Costs 

If your internet connection is lacking, your VoIP phone system might suffer greatly. In that case, you’ll need to upgrade your network to ensure smooth functionality, adding extra to your monthly billing. 

2. CRM and Other Integrations  

Many VoIP providers offer integrations for some of the most used software in professional settings, such as Slack and Microsoft Teams. While some might throw those integrations as part of their monthly packages, many charge extra for the implementation of those integrations. 

3. Taxes and Fees 

Taxes and fees may vary by location, and VoIP phone services are subject to them just like conventional communication systems. Federal, state, and local taxes may apply, and the added costs can differ from country to country. 

4. Additional features  

Many VoIP providers offer additional specific features with their monthly bundles. However, it is also common for providers to charge per feature, as VoIP systems can be tailored and adapted for each business’ needs.  

Adding phone lines, users or choosing to work with vanity and toll-free numbers can also increase billing.

Is VoIP worth the cost?  

Yes. VoIP is often worth the price in the long-run since it empowers companies to save on their communications costs and invest in what they need to grow. 

Choosing a VoIP provider offers you: 

1. Scalability 

2. Improved Customer Service 

3. Improved Business Operations 

Scalability 

VoIP is a smart choice for growing businesses because it grows with you.  

You can add lines and users as your business expands, add integrations to make processes easier and ensure every aspect of it is running smoothly while you focus on what really matters: the areas of your business that need extra attention and will endorse future growth. 

If you run a call center and rely greatly on call quality and volume, VoIP will enable you to keep serving your customers without compromising your reputation and guaranteeing every client will be attended to, even as you scale. 

Improved Customer Service  

Great customer service is imperative for happy—and returning!—customers. VoIP has features that allow your customer support team to learn and improve their practice with structured training, for example.  

With Call Recording, you can use real-life experiences to train collaborators and better understand customer pain points. 

At the same time, more robust and automated features, such as a Digital Receptionist, improves professionalism and trust in your brand by greeting calling customers and directing them to the department they need. That way, no call is left unanswered. 

Improved Business Operations  

A great VoIP phone system makes daily operations more streamlined – which also improves productivity, making it much more than a simple telephony service provider.  

VoIP providers let business owners create a custom communications system that answers every single one of their businesses’ needs – meaning you can integrate software and CRMs, create more transparent processes, and even adapt to remote work settings. 

If you want to learn more make sure to read our full guide on Getting Started for Small Businesses and Getting Started for Growing Business available on our Community Wiki!