How Much Does Internet Cost Per Month?

How much you spend on broadband internet will depend on your download speed, the type of internet you choose and the company you decide to purchase it from.

Note that although there are many internet providers across the country, there will most likely only be a few available where you live. In some cases, you may only have a single internet company in your area, at your rental or in your HOA community.

By Download Speed

Generally, faster internet speeds cost more. The speed you require depends on how many people use the internet in your home at the same time and what they’ll be using the internet for. For example, a house with multiple people working from home or frequently playing online video games may require faster internet speeds than a single person who only uses the internet to check email or social media.

The table below breaks down average monthly internet costs by download speed. Prices may vary between geographic areas.

By Type

There are several types of broadband internet to choose from. The type you purchase will affect available speeds and overall cost. Not every type may be available in your area, but expect at least some of the following options:

• DSL: Digital Subscriber Lines (DSL) requires a telephone line and modem to provide home internet. It’s slower than other types of internet but tends to be more affordable at an average of $54 per month.
• Cable: Cable is one of the most popular and widely available internet options. It’s much faster than DSL and costs roughly $69 per month.
• Fiber: Fiber internet is not yet widely available, but offers incredible speeds that are much faster than cable for an average of $81 per month.
• Satellite: Despite a relatively slow connection speed, satellite internet is growing because of its availability in rural or remote areas where there aren’t other options. Prices average about $93 per month.
• 5G Home Internet: 5G is another up-and-coming technology that’s well-suited to rural areas. It offers lower speeds but a lower average price of just $51 per month.

By Provider

The provider you choose can also impact your monthly internet costs. Most Americans only have one or two providers to choose from in their local area, although the advent of new technologies is slowly changing the market landscape. Among the cheapest internet providers are Mediacom and Comcast Xfinity, both of which offer prices as low as $19.99 per month.

The table below shows the average price ranges for the 10 best internet providers in the U.S.

By Contract Length

One positive development in the internet market is that service providers have increasingly moved away from locking customers into long-term contracts. For that reason, we don’t think about monthly internet prices in terms of contract lengths as much anymore. However, you can often get lower rates by bundling internet with other services.

Many providers also offer lower rates for your first year of internet service. If you choose to switch providers to take advantage of these rates, keep in mind that most companies charge start-up fees.

To determine whether a specific internet service will be fast enough for your needs, you’ll need to consider how many people in your home will access the internet simultaneously as well as what they’ll be using the internet for.

More important than the number of people is the number of devices using the internet at once. Consider your multitasking habits, such as scrolling through social media on a tablet while streaming on a smart TV or listening to a podcast on your phone while answering work emails on your laptop.

We recommend a minimum speed of 25 Mbps for most households. This meets the FCC’s definition of “advanced service.” The table below indicates the minimum recommended internet speeds for various scenarios:

What you pay for internet depends on several factors, including:

Availability

Not every type of internet is available to everyone. For example,internet for rural areas may be limited to satellite service in many places. Satellite service is the most expensive type of internet, on average. In certain communities, you may be limited to the ISP with which your landlord or HOA has an exclusivity contract.

Promotions and Discounts

ISPs often offer promotional rates for new customers. Once the promotional period ends, rates may jump up significantly. Some customers qualify for specific discounts when they bundle their internet with phone or cable services. Learn how to find the best internet deals available in your local area.

Speed

Faster internet typically comes at a higher cost. Read the terms and conditions of your contract carefully to know what speed you’re promised. You can regularly test your internet speed to ensure you’re getting what you’re paying for. If not, your ISP should fix your service and might provide a bill credit for the time that your speed was lower than it should have been.

When you see low prices advertised by ISPs, look out for the following additional fees that may end up on the final bill:

Installation Fees

Many ISPs charge a one-time installation fee to set you up with their service. They may even charge a separate “activation fee” as well.

Some companies allow self-installation, but otherwise be prepared to pay an installation fee every time you move or switch providers.

Equipment Rental Fee

If you’re using a modem, router or other equipment provided by an internet company, you may be charged a monthly equipment rental fee. You can avoid this by using your own equipment, but be aware that most services are only compatible with specific types of equipment. As of 2020, you cannot legally be charged for using your own internet equipment.

Separate equipment rental fees may not appear on your bill, but they could be baked into a higher base rate for internet service.

Early Termination Fee

Long-term internet service contracts are becoming less common, but they still exist. If you’re locked into a contract, be prepared to pay an early termination fee if you decide to leave or switch providers before your contract is up.

Late Payment Fee

If you miss a payment or submit it past the due date, you may be charged a late payment fee.

Data Cap Limit Exceeded Fee

Many ISPs today offer unlimited data plans, but you could save by purchasing a plan with a data cap in some cases. However, if you exceed your monthly data limit, you’ll be charged a significant fee for every additional gigabyte of data you use.

Price Increases

Rates can always be subject to change, so ensure you’re familiar with the terms of your agreement. If you sign up for internet service during a promotional period, know when that period ends and your rates are set to increase to ensure you stay on budget.

Other Fees

The FCC requires ISPs to contribute a percentage of their revenues to the Universal Services Fund. The object of the fund is to keep local phone services affordable for all Americans by providing discounts to schools, libraries and people living in rural or high-cost areas. These fees are often passed on to internet customers and may appear on your bill.

In addition to government-imposed fees, a 2022 Consumer Reports study found that many ISPs charge “junk fees” as a way to raise prices without increasing rates directly. These fees are often undefined by providers and come under names such as “network enhancement fee,” “internet infrastructure fee,” “deregulated administration fee” and “technology service fee.”

Below are a few tips to help reduce or offset your monthly internet costs:

Shop Around

Those living in densely populated areas are more likely to have options when it comes to an ISP. Compare rates and services across different providers to find the most affordable fit for your needs.

Assess Your Need for Speed

Assess how your internet use compares to the speed you’re paying for. If you can get by with a lower minimum speed, talk to your ISP about lowering your speed in exchange for a lower monthly rate.

Bundle

Another way to get lower rates is to choose an ISP that offers deals for customers who bundle internet service with phone or cable. If you’re paying for these services separately, bundling typically decreases costs.

Talk to a Customer Service Agent

If you don’t understand or disagree with any fees on your internet bill, call your provider to dispute them. You can also negotiate your internet bills if you get a lower quote from a competitor. Threatening to switch providers unless your ISP matches their offer could land you with a lower rate.

Look for Internet Deals

ISPs occasionally offer deals on internet service for new customers, which can range from a discounted monthly rate for a set period to a free year’s subscription to a specific streaming platform. Deals may not always lower your bill, but they may still offer you value.

Check for Government Programs

If you need assistance paying foryour internet bill, the federal government offers subsidies through its Affordable Connectivity Program. Eligible households can receive up to a $30 monthly discount toward their internet service, which may result in no cost at all depending on your rate. You may qualify based on your income or if someone in your household is enrolled in certain other government programs.

To arrive at the average costs in this article, a number of providers and cost databases were surveyed on national and local levels. All averaged figures were correct at the time of publication and may be subject to change.