If you’re in the market for an internet plan for your home, you may wonder how much you’ll pay for it. The truth is that internet pricing varies depending on where you live, what internet service providers (ISPs) are available to you, the type and speed of connection and other factors.
Key takeaways
Monthly internet costs typically range between $37 and $160.
DSL tends to be the most affordable internet option at an average of $53 per month, while satellite is the most expensive at $95 per month.
You can save money on internet by choosing a lower internet speed, bundling services and negotiating rates with providers.
How much does internet cost per month?
Monthly internet costs typically range between $37 and $160. However, not all internet connections are created equal, and your internet connection type, speed and provider will determine exactly how much you spend on internet per month.
Here’s a closer look at the average cost of internet based on each of these categories:
Average internet cost by connection type
Depending on your location, five types of internet connection may be available to you, including:
- Cable: Cable is one of the most popular types of internet connection and is easily accessible, regardless of whether you live in an urban or rural area, since it relies on the same coaxial cables that deliver cable TV. Compared to DSL, cable is faster and more reliable. It costs an average of $63 per month.
- DSL: Digital Subscriber Lines or DSL provides internet through a telephone line and modem. While it’s slower than other options, it’s also very budget-friendly. It costs an average of $53 per month.
- Fiber: Fiber has a reputation for delivering the fastest internet connection through fiber optic cables that transmit information at the speed of light. However, it’s not available everywhere yet, as ISPs are still expanding their fiber optic cable networks. It can also be more expensive than cable or DSL, in part because it requires a higher investment from ISPs to lay new cables. It costs an average of $78 per month.
- Fixed wireless: Wireless internet is available in 4G and 5G technology. Both use radiofrequency signals instead of cables to route an internet connection to your device. It tends to be cheaper and easier to install than other options, but it’s only available where there is 4G and/or 5G cell service. It costs an average of $60 per month.
- Satellite: Satellite routes internet connections through satellites and is a great option if you live in a rural or remote location with no wired options. Unfortunately, it’s pricey, even though it’s slower than cable and fiber. It costs an average of $95 per month.
Average internet cost by connection type
|
Cost per month
|
|
|---|---|
| Cable | $63 |
| DSL | $53 |
| Fiber | $78 |
| Satellite | $95 |
| Wireless | $60 |
Average internet cost by download speed
The faster your internet is, the more you’ll pay for it. Factors like the number of people in your home connecting to the internet simultaneously and the types of activities they’ll be engaging in will help determine the ideal speed for your home. You’ll require a faster speed if five people are working remotely, for example, than if there’s only one person who checks their email on occasion.
|
Cost per month
|
|
|---|---|
| 25 Mbps | $50 |
| 100 Mbps | $63 |
| 1,000 Mbps | $80 |
Average internet cost by provider
Fortunately, there is no shortage of internet service providers. While some providers have a reputation for cheap rates, others charge higher prices but offer the most reliable connection. Your budget, goals and preferences can help you zero in on the best internet provider for your situation.
|
Price
|
Speeds
|
|
|---|---|---|
| AT&T Internet | $55 - $250/mo |
10 - 5,000 Mbps |
| T-Mobile Home Internet | $40 - $100/mo |
33 - 2,000 Mbps |
| Optimum | $70 - $300/mo |
300 - 8,000 Mbps |
| Xfinity | $20 - $299/mo |
75 - 10,000 Mbps |
| Windstream | $39.99 - $324.99 |
500 - 8,000 Mbps |
| Verizon 5G | $35 - $80 |
70 - 1,000 Mbps |
What factors impact monthly internet costs?
As you shop around for internet plans, keep these factors in mind, as they can directly affect monthly pricing.
Availability
Not every type of internet is available everywhere. If you live in a rural town, for example, you may have fewer options than someone in an urban area. You might be forced to purchase satellite internet, which can be very expensive despite its slower connection.
Speed
While a faster internet connection is more convenient, it does come with a higher price tag. That’s because faster speeds typically require more resources from ISPs to maintain and upgrade infrastructure, leading to higher subscription fees to provide a return on investment for the provider.
Additionally, faster internet plans offer increased value and performance, justifying a higher price point. If you opt for a 100 Mbps plan instead of a basic 25 Mbps one, you can expect higher monthly costs.
Additionally, faster internet plans offer increased value and performance, justifying a higher price point. You can expect higher monthly costs if you opt for a instead of a basic 25 Mbps one.
Promotions and discounts
It’s not uncommon for internet providers to lure in new customers with a promotional rate for the first year. This rate will likely increase once the promo period ends. You might also land a discount if you bundle your internet with your phone or cable.
Are there hidden fees I should look out for?
Before you sign on the dotted line and move forward with an internet plan for your home, keep an eye out for these hidden fees:
- Data cap fees: Typically, internet plans come with unlimited data. However, if you go with a plan with a data cap, you might pay a fee if you use more internet than your plan allows each month.
- Early termination fee: Some internet providers will ask you to commit to them for a certain period. If you do get locked into a contract, you might be penalized with an early termination fee for ending your service early.
- Equipment rental fees: If your internet setup requires special equipment, like modems or routers, be prepared to pay an equipment rental fee. Unfortunately, you may be hit with this fee, even if you have your own equipment.
- Installation fees: You may be on the hook for a one-time installation or activation fee. This will cover the cost involved in setting up your internet. While you might be able to install the internet yourself, an installation fee is fairly common, especially if you move to a new home or switch providers.
- Late payment fees: Like personal loan lenders, internet providers may charge late fees if you miss payments.
How can I lower my internet bill?
You may be able to slash your internet costs using these tips:
Bundle
If you also need phone or cable services, look for bundling deals. Bundling your internet with your phone or cable service is a great way to lower your internet bill.
Choose a slower speed
The lightning-fast speeds of a 10,000 Mbps plan might sound nice, but those speeds don’t come cheap. A lower speed can save you money and may be a better choice, especially if it can still accommodate your needs.
Hunt for deals
You may find some internet deals in advertisements you see on TV or receive in the mail. However, it’s a good idea to be proactive and search for them on your own. Check out the sites of various providers to see what they’re offering.
Look into the Affordable Connectivity Program
The?Affordable Connectivity Program?is a federal initiative aimed at helping low-income households access broadband service. The program aims to bridge the digital divide by making high-speed internet access more affordable for those who need it, thereby facilitating access to education, employment opportunities, healthcare services and other essential online resources. However, the pandemic-era benefit?program has not been fully funded?in 2024, and it could end as soon as May 2024.
Shop around
While it may be tempting to go with the first provider you find, doing so can cost you. “The best way to lower your internet bill is to use the free market. Always get multiple quotes from different providers and choose the provider that provides the most value to your home or organization,” said Adrian Wilkerson, technology infrastructure manager at Learning Tree.
Shop closer to the end of the month
According to Wilkerson, sales departments are typically willing to negotiate promotional rates at the end of the month to meet their sales goals. If you’re a savvy negotiator, you may be able to land a deal.
Bottom line
These days, the internet is not a luxury for your home; it’s a necessity. Fortunately, you can find a good deal on a plan that meets your needs. Before you decide on an internet plan, however, make sure you ask about any special deals or promotions and are fully aware of any hidden fees.
