VoIP Cost Calculator for Small Business -- See Your Real Monthly Bill

VoIP costs $10 to $30 per user per month for the base subscription, billed annually. Add taxes and regulatory fees of 15 to 25 percent and the real monthly bill is typically $12 to $36 per user. A 5-person team on Nextiva Core at $15 per user pays around $90 to $95 per month all-in. A 10-person team on RingCentral at $20 per user pays around $240 per month all-in. Compare this to traditional landlines at $40 to $60 per line per month.

VoIP bills include federal Universal Service Fund (USF) charges of 7 to 12 percent, state telecom taxes of 2 to 8 percent, E911 emergency service fees of $0.30 to $2.50 per line, and regulatory recovery fees of $0.50 to $2.00 per line. In total, expect 15 to 25 percent added to your base subscription. High-tax states like New York and California are at the upper end. Low-tax states may be closer to 15 percent.

For a 5-person team: landlines with AT&T or Verizon cost approximately $260 per month (5 lines at $52 per line average), or $9,360 over 3 years. VoIP with Nextiva Core at $15 per user costs approximately $90 per month all-in, or $3,240 over 3 years. That is a saving of over $6,000. The gap widens with more users and grows further when you factor in VoIP features that would cost extra on landline (conferencing, call recording, etc.).

Only if you want physical desk phones. Most VoIP providers include free softphone apps for desktop and mobile, so many small businesses run entirely on apps with no hardware. If you need desk phones, budget $50 to $150 per phone for a Yealink T31 or Poly Edge E220. Good headsets for softphone use cost $30 to $80 each. Hardware is a one-time cost and typically pays for itself within 3 to 6 months compared to landline hardware rental fees.