Choosing the Right VoIP Phone Provider for Your Business: A Complete Cost Guide
Every company in your network has a different idea of which phone provider to use. Between comparing VoIP (Voice over Internet Protocol) rates and researching whether to stick with traditional landlines, it’s easy to feel overwhelmed.
As a business owner, you understand the importance of budgeting to help your company grow and invest wisely—all while keeping costs under control.
Considering that the average Canadian spends around $35 per month on mobile services—and that businesses require far more lines and data—evaluating VoIP pricing is crucial, right?
Especially when you keep hearing about how affordable VoIP business phone systems are, along with the extra features and flexibility they offer.
A lower-cost alternative to traditional phone systems might sound too good to be true.
But it isn’t!
VoIP providers offer many of the same (or more) features than traditional systems and can easily integrate with your existing tools—such as softphones, smartphones, headsets, dialpads, and communication apps.
To help you make the right choice, this guide breaks down everything you need to know about business communication costs with VoIP.
How Much Does VoIP Cost?
Here’s a look at estimated monthly costs for a company with 25 users:
| Provider | Monthly Cost* | Popular Features |
|---|---|---|
| VoIP.ms | $22 | Digital Receptionist, Call Forwarding, Microsoft Teams Integration, Call Queue |
| Nextiva | $625 | Business SMS, Video Meetings, Call Routing |
| RingCentral | $725 | Unlimited Calling, IVR Menus, Google & Microsoft Integrations, API Access |
| Ooma | $748.75 | Virtual Receptionist, Text Messaging, Video Conferencing, Call Recording |
| GoTo | $825 | Free Calls to 50 Countries, Auto Attendants, Video Meetings, SMS & MMS |
*VoIP.ms: internal data
*Competitors: user price × 25 users (as of February 2025)
VoIP Cost Calculator
Still unsure about costs? A VoIP cost calculator can help you determine monthly expenses and how they affect your budget.
Business VoIP Pricing Breakdown
VoIP providers typically charge per user, averaging about $25 per user/month.
However, Pay-as-You-Go systems—like VoIP.ms—offer more flexibility. For example, a business with 25 users might pay less than $1 per user per month with VoIP.ms.
Of course, additional features, users, and hardware will increase your total bill.
Many businesses save even more by choosing softphone apps instead of hardware. These apps work on smartphones, laptops, and tablets, giving you full mobility.
Let’s break down VoIP costs into two categories:
- Recurring Costs
- One-Time Costs
Recurring VoIP Costs
Recurring expenses include:
- Monthly Subscription: Charged per active line or user.
- Additional Users or Lines: More users = higher costs.
- Add-On Features: Features like IVR, call queues, or international calling add to your bill.
Good to Know:
At VoIP.ms, you can add as many users or lines as needed without extra fees—which isn’t the case with many other providers.
One-Time VoIP Costs
Initial investments may include:
- Hardware: Desk phones, headsets, etc.
- Number Porting: Free or paid, depending on the number’s origin.
- E911 Activation: Emergency services setup.
- Installation & Setup: Costs vary based on system complexity.
With VoIP.ms, setup is simple and supports Bring-Your-Own-Device (BYOD), helping businesses save up to 90% compared to traditional phone providers.
Is VoIP Cheaper Than a Landline?
Yes—and here’s why:
- Adaptability: Scale up or down easily. Pay only for what you use.
- Low Setup Costs: Minimal hardware and no long wiring installations.
- Flexibility: VoIP travels with you; landlines don’t.
- Affordable Add-Ons: Integrations like Microsoft Teams are cheaper.
- Lower International Rates: Great for global businesses.
Start Saving with VoIP
A strong communications system is essential for business growth. But traditional phone services are outdated and expensive.
VoIP offers:
- Lower monthly rates
- Flexible plans (subscription or pay-as-you-go)
- Add-ons that match your business needs
Creating a free account with VoIP.ms lets you explore pricing options without commitment.
Want help choosing the best solution? Our Sales Team is ready to answer your questions.
FAQs About VoIP Pricing
What are the hidden costs of VoIP?
Be aware of:
- Internet Upgrades: Reliable internet is essential.
- Integrations: Some tools (e.g. CRM, Slack) may cost extra.
- Taxes & Fees: Vary by location.
- Feature Charges: Additional users, toll-free numbers, or call recording may not be free.
Is VoIP Worth It?
Yes. VoIP empowers your business with:
- Scalability: Add users and features as you grow.
- Better Customer Service: Call recording and IVR improve support.
- Streamlined Operations: Integrate with CRMs and enable remote work.
For more, visit our Getting Started for Small Businesses and Growing Business Guides in the Community Wiki.
