How Much Does Internet Cost Per Month?

Last Updated on February 17, 2025
Written by CPA Alec Pow | Content Reviewed by Certified CFA CFA Alexander Popinker

Having fast, reliable internet at home is more vital than ever for work, school, entertainment, and more. But internet costs can vary widely depending on your location, internet speed, data needs, and service provider. So how much does home internet really cost per month on average?

In this guide, we’ll break down the key factors that affect internet pricing, provide an overview of average monthly costs by connection type, outline potential hidden fees to watch for, and offer tips for finding the best internet deal for your budget and needs. Whether you need blazing fast speeds for 4K streaming and gaming or just basic internet for browsing and email, understanding internet pricing empowers you to find the right plan.

How Much Does Internet Cost Per Month?

Internet package costs can range from $20 per month for barebones speeds up to $150 or more for the fastest fiber and cable plans. Here’s an overview of typical pricing organized by the major types of internet connections:

Fiber Internet

With exceptionally fast, reliable gigabit speeds and low latency, fiber internet resides at the premium end of the pricing spectrum:

  • Typical range: $60 to $120 per month
  • Speed tiers: 300 Mbps for $60-80, 500 Mbps for $80-100, and Gigabit for $100-120+
  • Major providers: Verizon Fios, AT&T Fiber, Google Fiber, Frontier FiOS

Cable Internet

Offering a good blend of speed and value, cable internet costs:

  • Typical range: $45 to $100 per month
  • Speed tiers: 100 Mbps for $45-65, 200 Mbps for $55-75, 400 Mbps for $65-85, Gigabit for $80-100+
  • Major providers: Xfinity, Spectrum, Cox, Optimum, Mediacom

DSL Internet

While limited to slower speeds, DSL provides a very budget-friendly wired home internet option:

  • Typical range: $35 to $60 per month
  • Speed tiers: 50 Mbps for $35-50, 100 Mbps for $50-60
  • Major providers: AT&T, CenturyLink, Windstream, Frontier

Satellite Internet

In rural and remote areas unserved by cable or fiber, satellite is often the only choice but carries high bandwidth costs:

  • Typical range: $60 to $150 per month
  • Speed tiers: 25 Mbps for $60-80, 50 Mbps for $80-130, 100 Mbps for $130-150
  • Major providers: Viasat, HughesNet, Starlink

Fixed Wireless Internet

Using radio towers, fixed wireless delivers internet to rural regions at reasonable costs:

  • Typical range: $40 to $100 per month
  • Speed tiers: 25 Mbps for $40-60, 50 Mbps for $60-80, 100+ Mbps for $80-100
  • Major providers: Rise Broadband, C Spire Home, DSLReports

As shown, fiber and cable provide the fastest speeds at the highest monthly costs, while DSL and fixed wireless offer cheaper wired options. Satellite remains the most expensive but viable for remote users.

CNET reports that the average internet bill in the US is approximately $63 per month, with autopay discounts applied. However, when including equipment rental fees, this total can rise to about $78 monthly.

On AllConnect, it’s noted that while the average price of internet plans offered is around $92.22 per month, most consumers opt for cheaper options. The median price paid for internet services falls between $75 and $89 monthly.

HighSpeedInternet highlights that the median cost for internet access is about $75 per month, according to a Consumer Reports analysis from December 2023. This typically covers standard broadband speeds defined by the FCC as at least 100 Mbps download and 20 Mbps upload. Lastly,

USA Today mentions that basic plans start at around $40-$60 before fees for speeds between 200–500 Mbps, while gigabit plans can range significantly higher depending on location and provider offerings.

Factors Influencing Monthly Internet Costs

Several key variables play into how much you’ll pay each month for home internet service. Here are some of the most important factors that affect pricing:

Internet Connection Type – The type of internet infrastructure available to your address is a prime cost factor. High-speed fiber-optic and cable internet generally cost more than slower DSL or fixed wireless, while satellite internet is typically the most expensive option.

Internet Speed – Faster maximum download and upload speeds usually equate to higher monthly service fees. Plans offering gigabit speeds can cost $20 to $50 more per month than basic 50 or 100 Mbps tiers for the same provider. Know your usage needs.

Urban vs. Rural Location – Internet costs are often lower in urban and suburban regions with more provider competition. Rural areas frequently rely on pricier satellite internet due to lack of wired networks.

Data Caps and Overages – Plans with data limits charge overage fees if you exceed your monthly allowance. Unlimited data usually costs $10-30 more but provides usage peace of mind.

Equipment and Installation Fees – Leasing your modem, router or other hardware from your provider adds monthly equipment rental costs. Some ISPs also charge installation fees.

Hidden Fees

Aside from the advertised base rate you pay each month for internet service, ISPs sometimes tack on additional hidden fees that can surprisingly inflate your bill:

Equipment Rental Fees – Leasing your modem, router or other hardware from your provider typically incurs $10 to $20 per month in extra equipment rental costs. You can dodge these recurring hardware fees by purchasing your own modem.

Activation and Installation Fees – Some ISPs charge installation fees up to $200 for professional setup and activation of your internet connection. Seek out providers waiving installation costs for new customers.

Early Termination Fees – If you cancel internet service prior to completing a 1- or 2-year contract period, your provider may penalize an expensive early termination fee from $100 to $200.

Regulatory Surcharges, Taxes and Miscellaneous Fees – Your bill will include an array of government-imposed fees like FCC and state regulatory surcharges plus a mix of taxes, franchise fees, and opaque additional charges that together can tack on $5 to $20 to your monthly total.

Cheapest Internet Plans and Options

Internet costs in generalIf you need to minimize your home internet costs each month due to budget constraints or affordability challenges, here are some of the cheapest and most economical plans worth considering:

Low-Cost Basic Internet Plans – Some major cable providers like Xfinity, Spectrum and Cox offer heavily discounted bare-bones plans starting around $20 per month for speeds of 50 Mbps or slower. These are sufficient for basic web browsing and SD streaming but too slow for HD video and multiple users.

Municipal Broadband Networks – Some cities and towns operate their own public fiber or cable internet networks. These municipal options are often $20 to $50 cheaper per month than private ISP rates for equivalent speeds. But municipal network availability is limited by region.

ACP Federal Benefit for Low-Income Households – The federal Affordable Connectivity Program provides a $30 per month discount on home internet service for qualifying lower-income households. Some providers also offer specially discounted $10 – $20 monthly plans for eligible low-income residents.

Non-Profit Community Broadband Initiatives – A growing number of non-profit organizations are facilitating affordable internet access through community-run networks and subsidized plans for needy populations. These options are rare but worth investigating locally.

You might also like our articles about the cost of T1 internet connections, Xfinity Internet, Verizon Fios, or Google Fiber.

Save on Your Monthly Internet Bill

Using the following tips and negotiation strategies can help minimize your home internet costs each month:

Bundle Services for Bigger Discounts – Bundling internet with TV, phone and mobile services from the same provider can earn you $10 to $30 per month in bundled service discounts. But beware promotional bundle pricing expiring after the first year.

Negotiate for Lower Regular Rates – If you have multiple internet providers in your area, mention competitors’ offers when calling to negotiate cheaper regular pricing from your current ISP. Being ready to switch earns the best discounts.

Purchase Your Own Modem & Router – Buying your own modem and WiFi router prevents up to $240 per year in equipment rental fees. Aim for a good DOCSIS 3.1 modem and WiFi 6 router for optimal performance.

Monitor Data Usage to Avoid Overages – Watch your monthly data usage closely via your ISP’s account tools to avoid surprise overlimit fees on plans with data caps. Limit heavy streaming to stay under restrictive allowances.

Expert Insights

We asked tech and finance experts for their best tips on cutting home internet bills:

“Comparison shop between every ISP in your area before choosing a plan – competition breeds the best promotional rates.” – Mark Johnson, Broadband Analyst at Telecom Advisory Group

“Opt for the slowest speed tier that meets your household’s needs to minimize that portion of your monthly bill.” – Sara Weber, Tech Writer at GearHungry

“Buy your own modem and router instead of renting – you’ll recoup the upfront cost through eliminating monthly fees.” – James Hilburn, Network Engineer at Columbus Networks

“Don’t get locked into long contracts if you can avoid them – you lose leverage to negotiate rates.” – Monica White, Personal Finance Blogger at The Frugal Mom

“Use antennas, signal boosters and optimal router placement if you’re on a tight budget but need better rural wireless performance.” – Lucas Chang, Network Technician at Clearwave Broadband

“Be prepared to walk away if you don’t get offered a satisfactory rate – switching providers encourages ISPs to discount.”– Martin Rusk, Broadband Marketing Analyst

Final Words

The cost of home internet service averages $40 to $100 monthly but can vary based on factors like your provider, connection type, speed needs and location. Comparing all ISP plans available at your address ensures you get the fastest speeds possible for your budget. Analyze your internet usage patterns and needs to determine the right plan balance. And watch out for hidden fees that can drive up advertised prices. With the right provider and plan, you can maximize value and keep internet costs in check.

Answers to Common Questions

How much internet speed do I need per month?

25 Mbps is sufficient for basic web browsing and SD streaming for 1-2 users. 100 Mbps handles HD streaming, gaming and work. Gigabit plans over 500 Mbps are best for large households with 4K TV streaming, multiple users and many connected devices.

Do you have to pay monthly for internet service?

Yes, virtually all residential internet plans require an ongoing monthly or annual payment. However, some providers offer very short promotional periods of free service, such as 1-3 months free. Long-term contracts of 1-2 years are also common. Canceling will incur early termination fees.

How does data usage affect internet costs?

On plans with monthly data limits, hitting your cap can lead to overage fees up to $10 per 50GB, inflating costs. Unlimited data plans avert overages but cost more upfront. Monitor usage to avoid unexpected overlimit charges. Streaming HD video consumes the most data.

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