How Much Does Internet Cost Per Month? Internet Fees Explained

Internet bills are an essential monthly investment to stay connected on social media, stream shows and movies, and work from home. In addition to the monthly cost, you should look out for fees, especially if you rent equipment or sign a contract with your internet service provider (ISP). Our guide breaks down all the internet costs — including how much internet costs per month — and how to reduce your monthly internet bill to avoid falling into the pit of endless fees.

Monthly Cost of Internet Services

1. How Much Does Internet Cost Per Month?
2. What Fees Contribute to the Cost of Internet?
3. How Much Does Internet Cost by Type?
4. What Factors Affect Monthly Internet Cost?
5. How to Lower Your Monthly Internet Bill
6. Frequently Asked Questions About Monthly Internet Cost

How Much Does Internet Cost Per Month?

The monthly cost of internet service varies depending on how much speed and data you need, the provider you choose, your connection type (cable, fiber, etc.), and where you live. Most internet providers offer plans with monthly prices starting at about $40 to $50 for download speeds of 100 to 300 Mbps, but gigabit-speed plans sometimes cost $100 or more. An analysis by Consumer Reports revealed that the average homeowner pays $75 per month for internet.

The issue is that most ISPs don’t advertise the real monthly cost of their plans. What you see is just the base price, which typically increases by $5 to $25 per month after the first 12 months. The advertised price may seem great at first, but it not only requires setting your bill on auto-pay, but it’s also subject to increase following the 12-month promotional period.

What Fees Contribute to the Cost of Internet?

It’s rare to find an internet provider with bills that match the prices it advertises. Internet contracts — what most providers call service-level agreements — typically include the following fees and taxes.

• Equipment rental fees: Modem and router rental fees run between $9 and $15 per month. Some providers, however, include equipment rental at no cost, especially with higher-tiered plans. You can avoid the fees with most providers by buying your own equipment. If you’re not tech savvy, the rental fee may be worth paying.
• Installation and activation fees: Although they’re one-time costs, installation and activation fees can add $100 or more to your first bill. The good news is providers often waive the fees for new customers and people who choose self-installation. Some tech savviness is required for self-installation, and it may not work seamlessly with every home.
• Network maintenance fees: The Federal Communications Commission (FCC) requires a quarterly Universal Service Fund fee from ISPs to help fund broadband expansion. It’s rare to see the fee on your bill (especially under that name), but don’t be surprised if you see a Wi-Fi or network maintenance fee. Providers don’t always pass the fee on to their subscribers, but the ones that do typically do so at a rate of $5 or less per month.
• Late-payment fees: Late-payment penalties vary, but they appear on your bill either as a percentage of your bill or as a set fee — usually $20 or more. If your service is disconnected for late payments, there may also be a restoration or reconnection fee.
• Cancellation fees: If you enter into a contract or sign up for promotional pricing, your provider may hit you with a cancellation or early termination fee (ETF) if you cancel internet service before the end of the contract. The fee amount depends on the number of months remaining in the contract, but ending service earlier than expected can lead to charges of hundreds of dollars.
• Data overage fees: Plans with data caps charge a data overage fee when you exceed your monthly data allowance. Usually, the overage fee is around $10 for every 50 GB of data used over the plan amount.

How Much Does Internet Cost by Type?

The cost of internet each month varies by the type of internet connection. Below are the most common internet connection types and how they provide service to your home.

• Fiber-optic: Delivers internet through optical fibers that transmit data using light pulses, providing high-speed and reliable connectivity by sending data over long distances with minimal signal degradation.
• Cable: Coaxial cables transmit data as electrical signals using existing cable TV infrastructure to provide high-speed connectivity to homes.
• DSL: Enables broadband access over traditional copper telephone lines using higher frequency bands to transmit digital data alongside voice communication.
• Satellite: Transmits data between a satellite dish at your location and a geostationary satellite in orbit, allowing for internet access in remote or rural areas where traditional terrestrial connections may be unavailable or limited.
• Fixed wireless: Uses radio signals from a fixed base station to an antenna installed at your location to provide broadband connectivity without the need for physical cable. This type of connection is suitable for areas where laying cables is impractical or costly.
• 5G home internet: High-frequency radio waves transmitted from nearby cellular towers provide fast and reliable broadband connectivity to homes wirelessly.

Several factors play into the price providers ultimately charge you. Outside of speed and data, an ISP’s monthly rate and additional fees vary based on the type of connection you choose. Most people will have access to only one or two internet connections, and cable and DSL internet are the most widely available connection types nationwide. Satellite is the most widely available internet connection overall, but its speeds can’t compete with wired connection types such as cable, DSL, and fiber.

*Last updated 8/23/24

What Factors Affect Monthly Internet Service Cost?

Your ISP and type of internet play a role in the cost of internet, but the specific type of plan you choose will ultimately determine your total monthly bill. Below are some examples of cost factors.

• Internet speed: Your internet speed is the primary determinant of your monthly bill. Depending on your internet usage, you’ll want to find a speed that can handle your online tasks. Light web browsing and email usage require only a low-speed plan, while bandwidth-heavy activities such as streaming and playing online games necessitate higher-speed plans.
• Bundles: Some ISPs offer bundles with other services, such as TV, phone, mobile, and home security. You may be able to save some money by bundling services rather than having multiple providers for different ones. Spectrum, AT&T, and Xfinity are a few ISPs that offer bundling options.
• Promotions and discounts: Most ISPs feature promotions and discounts throughout the year, especially for new customers. Taking advantage of the deals can save you some money, but you’ll want to keep an eye on their expiration dates. Your monthly bill will increase after the deals are up, and you likely won’t be notified until you receive your new, larger bill.

Understanding Internet Price Increases

Unfortunately, price increases on internet service are par for the course. Some areas have limited providers available, so it can feel like you’re locked into an ISP paying higher prices year after year. It’s helpful to understand where those price increases come from to make sense of your monthly bill. Below are some common reasons your internet price increases.

• Promotional discounts expire: ISPs often offer promotional discounts to new customers. Those discounts typically expire after a certain period of time, however, and your bill may go up when they do. Common promotional periods vary between 12 and 24 months.
• Usage increases: If you’re using more data or streaming more video than you used to, your ISP may charge you for exceeding your data cap or for higher speeds. Not all ISPs impose data caps, so check your plan to be sure.
• Service cost increases: ISPs may increase their cost over time due to inflation, changes in the price of providing service, or other factors.
• Equipment upgrades: Your ISP may require you to upgrade your modem, router, or other equipment to support faster speeds or new technologies, and those upgrades may come with additional costs.
• Bundles and add-ons: If you’ve added services such as TV, phone, or home security to your broadband package, your bill may increase to reflect the additions.
• Contract changes: If you have a contract with your ISP, changes to the terms and conditions may result in higher fees or charges.
• Taxes and fees: Your broadband bill may increase due to taxes, regulatory fees, or other charges imposed by federal, state, or local governments.

How to Lower Your Monthly Internet Bill

Internet bills can steadily increase, but luckily there are ways you can save money and lower your internet bill. Use the below tactics to reduce your monthly internet cost.

• Examine your monthly bill: Scrutinize your monthly statement. Look for hidden fees such as activation fees, equipment rentals, and late-payment penalties. Reach out to your ISP to discuss anything that doesn’t look right. Account for potential fee hikes after promotional rates expire.
• DIY your internet: Avoid rental fees by using your own equipment. It may seem expensive up front, but it could prove a big cost savings over time. Consider installing your internet to save on installation costs.
• Research competitive ISPs in your area: You may be limited on providers, but it doesn’t hurt to shop around. Compare ISPs for pricing, speed, and customer satisfaction. Search for unbiased reviews online, such as in community forums, and ask your neighbors which service they use.
• Negotiate a lower rate: It doesn’t hurt to contact your ISP to see if you can negotiate a lower internet price. Research current offers and competitor rates, and be prepared to cancel to leverage better deals. Maintain polite persistence during negotiations to increase your chances.

Frequently Asked Questions About Monthly Internet Cost

What type of internet is the cheapest?

DSL is the cheapest type of internet service. It doesn’t offer the fastest speeds compared to fiber or cable, but it provides sufficient bandwidth for basic internet activities. Its affordability and broad availability, especially in rural and suburban areas, make DSL an attractive option for budget-conscious consumers.

What is the cheapest internet provider?

The cheapest internet provider varies based on location and available plans, but AT&T, Spectrum, and Xfinity generally offer budget-friendly plans and bundles.

How do I get free Wi-Fi?

You can visit public places such as libraries, cafes, restaurants, and retail stores that offer complimentary internet access to customers.

How do I get internet without cable or a phone line?

You can opt for wireless internet solutions like mobile broadband, fixed wireless, and satellite internet. Mobile broadband uses cellular networks to provide internet access, and it’s suitable for areas with strong cell coverage. Fixed wireless internet delivers connectivity via radio signals from a nearby tower to a receiver at your home. Satellite internet delivers internet service almost anywhere via satellites.

Can I negotiate my internet bill?

You can negotiate your internet bill by researching current promotions and competitor rates, understanding your usage needs and directly contacting your internet service provider. Start by gathering information on the latest deals and what other ISPs in your area are offering.