How much does a VoIP phone system cost in 2024 ?

VoIP Phone System Cost

In today’s ever-changing business environment, where each choice influences financial outcomes, many companies are delving into Voice over Internet Protocol (VoIP) to enhance communication efficiency. This technology presents a compelling value with reduced setup expenses and cutting-edge features like virtual phone numbers, conferencing, flexibility, scalability, etc.

This article aims to demystify the complex landscape of VoIP phone systems, providing insights not just into their functionalities but also the financial considerations.

How Much Does a VoIP Phone System Cost ?

The average VoIP phone system costs between $99 and $400 per extension, accompanied by ongoing expenses ranging from $20 to $30 per extension per month, covering maintenance, service fees, and additional features.

The overall expense is influenced by the number of phone extensions, encompassing costs for installing and setting up desktop phones, along with a recurring monthly service fee. Cordless desktop phone options with a headset typically range from $150 to $400 per phone, accompanied by a $50 labour charge. Additionally, there’s a one-time transfer fee averaging about $25.

For businesses in need of outside lines, there’s a one-time port fee. When opting for a VoIP system hosted by a third-party provider, users encounter per-user, per-month service costs. This includes options such as toll-free numbers, ensuring clients can call without incurring charges, as well as features like unlimited calling or the use of an auto attendant. The flexibility of these choices allows businesses to tailor their VoIP system to specific needs while managing costs effectively.

VoIP Phone System Setup and Installation Costs

1. Phone Equipment Costs

For optimal functionality and feature utilization, most businesses opt to invest in new VoIP phones. Popular choices include the Polycom VVX series for desk phones and select Yealink models for cordless options. Prices typically range between $150 to $200 per phone, accompanied by a $50 labour charge. In cases where businesses already possess compatible VoIP desk phones, a programming service is available at an additional $50 per phone.

2. Phone Number Migration Costs

Transitioning to a VoIP system often involves transferring existing phone numbers to the new provider, incurring a one-time fee of $25 per number.

3. Infrastructure and Cabling Costs

Each VoIP phone requires an internet connection, usually facilitated through existing Ethernet cabling. While existing infrastructure suffices in most cases, additional labour costs may arise if a new drop is needed. Upgrading network switches to support Power over Ethernet (PoE) is an option, with costs varying based on the current environment.

4. Ongoing VoIP Phone Service Costs

Given the virtual nature of VoIP phone lines, monthly service costs are divided among extensions and outside lines. Key components of ongoing service costs include:

VoIP Phone Costs per Extension
  • Each extension: Around $15 per month
  • Additional device for the same extension: Around $5-$3 per month
  • Call recording option: Around $3 per month
  • Virtual extensions and conference bridges: Around $3 per month
VoIP Phone Costs per Call Path
  • Each call path (outside line): Around $10 per month

Factors Affecting VoIP Phone System Costs

The cost considerations for a VoIP phone system extend beyond the simplicity of outside lines and the count of extensions. Numerous factors contribute to the overall expenses, shaping the financial landscape of implementing this advanced communication technology.

1. Ongoing VoIP Phone Service Costs

Given the virtual nature of VoIP phone lines, monthly service costs are divided among extensions and outside lines. Key components of ongoing service costs include:

2. New Phone Equipment

The adoption of VoIP often necessitates the investment in new phone equipment, ranging from $100 to $200 per phone. Accompanying this are professional service fees of $25 to $50 per phone for installation and configuration. It’s crucial to note that VoIP desk phones typically become outdated every two to three years, requiring periodic replacements.

3. Network Infrastructure

Each phone’s connectivity to the internet is vital for VoIP functionality. Leveraging existing Ethernet ports is possible in some cases, whereas if Ethernet ports are unavailable, installing new drops incurs additional labour costs. Upgrades like Power over Ethernet (PoE) for adapter-free phone power add flexibility but come with costs ranging from $150 to $200 per phone, with labour around $50 per phone. Port fees typically range from $20 to $30 per phone.

4. Phone Number Migration

The transition of phone numbers to new extensions involves a one-time migration fee of approximately $30 per extension.

5. Installation and Set Up

Initial installation costs encompass labour and professional service fees, varying from $25 to $50 per phone. The overall  VOIP phone system installation expenses hinge on the chosen system type—cloud-based, hosted, modern, or on-premise—and may require additional hardware beyond an initial headset.

6. Monthly VoIP Phone Service

Ongoing monthly service charges play a significant role in VoIP system costs. Basic service charges range between $10 and $15 per extension. Opting for additional features such as call recording, video conferencing, or conference calls may incur an additional monthly fee of up to $25 per extension.

Understanding these multifaceted factors provides businesses with a comprehensive view of the elements influencing VoIP phone system cost.


In conclusion, delving into the world of VoIP phone systems reveals a nuanced landscape of costs influenced by various factors. From the initial investment in new phone equipment and network infrastructure to the ongoing monthly service charges, businesses navigating the transition to VoIP must carefully consider their specific needs and functionalities.

By navigating the intricacies of VoIP phone system cost, you can unlock the benefits of advanced telephony, enhance communication efficiency, and pave the way for a more cost-effective and streamlined future.

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