How Much Does a Phone System Cost for Small Businesses—and How Can It Reduce Expenses?

If you’re wondering how much a small business phone system costs, the short answer is: it depends on the type of service you choose.

Pricing varies based on your team size, required features, and whether you select a cloud-based system or a traditional phone line. For most small businesses today, VoIP (Voice over Internet Protocol) systems offer the best balance of affordability, flexibility, and functionality—making them the most popular choice for modern business communication.

Quick Overview: Business Phone System Costs

Business phone systems typically range from $10 to $100+ per user per month, depending on the provider, features, and service type. Most small businesses opt for VoIP or virtual phone systems, which are generally more cost-effective and scalable than traditional landlines.

VoIP & Virtual Phone System Pricing

Entry-Level Plans ($10–$25 per user/month)

 Ideal for small teams with basic needs. Common features include:

• Unlimited domestic calling
• Voicemail
• Call forwarding
• Business texting

Mid-Tier Plans ($25–$45 per user/month)

 Designed for growing teams and customer-facing businesses, typically including:

• Auto-attendants
• Call recording
• Team messaging
• CRM integrations

Advanced Plans ($40–$100+ per user/month)

 Best for larger teams or complex operations, with features such as:

• International calling
• Video conferencing
• Advanced analytics
• Enterprise-grade security

Traditional Landline Phone Systems

Basic Service ($15–$40 per line/month)

 This usually covers the phone line only and does not include equipment, installation, or maintenance.

Bundled Packages

Some providers offer discounts when landlines are bundled with internet services, occasionally lowering the base price—but added fees often remain.

Once hardware, installation, and ongoing maintenance are factored in, total landline costs commonly reach $50–$100+ per line per month.

What Affects the Total Cost?

Several factors influence the final price of a small business phone system:

• Service type: VoIP is typically more cost-effective than landlines
• Number of users: Many providers offer volume discounts
• Features: Advanced capabilities increase monthly pricing
• Integrations: CRM or software integrations can improve efficiency and reduce costs elsewhere
• Provider: Pricing varies widely, so comparison is key
• Taxes and fees: Often excluded from advertised pricing

Why VoIP Is Usually More Affordable

Cloud-based VoIP systems generally cost $15–$40 per user per month, while traditional landlines can run $50–$100 per line once all costs are included.

VoIP eliminates:

• Copper wiring
• Expensive on-site hardware
• Long-term maintenance fees

It also adds productivity-enhancing features such as:

• Mobile and desktop apps
• Voicemail-to-email
• Video meetings
• Remote and hybrid work support

Additional Cost Considerations

Number of Users

Decide whether every employee needs a dedicated line or if shared lines are sufficient. Customer call volume and routing needs should guide this decision.

Phone Hardware

VoIP desk phones typically cost $50–$300 per device, but many businesses avoid hardware altogether by using mobile apps on existing smartphones, tablets, or laptops.

Training

New systems require onboarding. Costs vary by team size and complexity, though many providers include tutorials and live training at no extra charge.

Features

More advanced features increase costs but often deliver strong ROI. Auto-attendants, call routing, spam protection, and analytics can significantly improve efficiency and customer experience.

How Much Does a Business Phone Line Cost?

Traditional landline (POTS) services typically cost $15–$40 per line per month, excluding equipment and maintenance. With those added, costs often exceed $50–$100 per line.

Additionally:

• Landlines offer limited scalability
• Many providers are phasing them out
• Future upgrades will likely require internet-based systems anyway

As a result, most small businesses are transitioning to VoIP for long-term flexibility and cost control.

Real-World Pricing Examples

• 5-person marketing agency:
  Mid-tier VoIP plan at $25/user → ~$125/month
• 10-person medical office:
  Premium VoIP plan with compliance features → ~$279/month
• 20-person ecommerce company:
  International calling + CRM integrations → $700–$900/month

In most cases, VoIP systems provide lower total cost, greater flexibility, and better support for growth compared to traditional landlines.

Bottom Line

While traditional phone systems may appear cheaper upfront, VoIP delivers better long-term value for small businesses. With lower operating costs, modern features, and support for remote work, VoIP remains the most practical and future-proof communication solution for growing organizations.