How Much Does Internet Cost? A Quick Guide to Cutting Costs Without Cutting Speed

I’m sure we don’t need to tell you—reliable, high-speed internet is non-negotiable for most of us. Many rely on it to stay on top of work or school projects, enjoy some entertainment during downtime, and stay connected to friends and family both near and far. In fact, according to surveys, 78% of Americans consider internet service as important as electricity and water. But when it comes to how much does internet cost, you may be wondering: am I getting my money’s worth? How much should I actually be paying?

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We’re here to help you better understand average internet costs and, more importantly, how to avoid overpaying without compromising speed and reliability. Let’s take a look at the factors that drive costs and how to get the best possible deal. 

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What Affects the Price of High-Speed Internet?

Before we can look at the average costs, it’s worth considering the factors that determine pricing. That includes: 

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• Speed: Internet speed is measured in megabits per second or Mbps. The faster the speed, typically, the more expensive the plan. Speeds can range from less than 25 Mbps (which is usually suitable for casual browsing and streaming) to over 1,000 Mbps (also known as gigabit internet), which is what you’ll be looking for if you stream heavily, are into gaming, or have multiple internet users at your home. Most households require somewhere between 100 and 300 Mbps. But some require more and other much less.
  
  
• Types of connection: The type of internet connection in your area can greatly affect the cost. For instance, fiber-optic internet provides the fastest speeds and most reliable connections. However, it often comes at a cost, and it’s unfortunately not always available. Cable internet is more widely available and usually provides good speeds, but the costs will vary depending on how much competition is in your area. DSL (or digital subscriber lines) used to be the best many areas had to offer. Now, however, these lines tend to be slower than other options. On the positive side, DSL is also usually less expensive and more widely available, even in rural areas. 

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Finally, satellite internet is available just about anywhere. It tends to be the very last resort for folks in rural areas as it’s usually expensive and slow or has data limits that slow speeds after minimal usage. It can also be negatively affected by storms or obstructions. However, there are newer, more reliable options available, but they can be significantly more expensive. On a positive note, some allow you to take your connectivity with you wherever you go. 

• Data limits & caps: Depending on the plan, you may find you’re charged excess fees if you go over your data limits. You may consider an unlimited plan, but you’ll pay more. That’s great if your household uses a lot of data for streaming, gaming, or remote work. However, many households don’t need that much data and end up paying more than necessary. 

• Equipment fees & additional costs: Many providers charge fees for modem/router rental, installation, taxes, and surcharges. These can add up quickly—increasing the price by $10 to $20 every month. Before you choose your provider, it pays to know exactly what you’re getting charged and why to determine the actual (vs. advertised) costs.

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Taking all of that into account, how much does internet cost on average is between $35 and $70 per month for speeds around 100 to 300 Mbps. Gigabit plans can increase to $70 to $100+ per month, depending on the providers available in your location. The median price in the U.S. for internet is between $70 and $89 per month. 

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Some providers offer promotional prices to hook you. But those prices often expire after the first year. So, it’s smart to understand the regular rates before you sign on. 

How to Avoid Overpaying for High-Speed Internet

So, now we know the average and medium prices for high-speed internet, but you’re not just an average person. You’re a unique individual. And your needs can vary from other people in the U.S. or even in your local community. To determine how much you should be paying for internet, you’ll want to look at how much internet you and your household use. Do you stream videos? Work from home? Play online games? All of the above? Then you may need faster speeds. 

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Or, perhaps you just enjoy browsing the web, checking email, or scrolling through a few reels. If that’s the case, you may get all you need with a basic plan that provides 50 to 100 Mbps. Knowing your needs can help you pick the most affordable plans without paying unnecessary fees for usage you’ll never use. 

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It also pays to shop around and compare providers if there are multiple options in your area. You can look online to see what’s available in your location and compare providers. Remember, it’s important to look beyond the current promo pricing to see what the long-term costs are once any discounts expire. 

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Many providers encourage bundling services to save on costs. For instance, they may offer internet, T.V., and phone for one “low price.” Before you sign on, look at what you’ll actually use. Those packages are only good deals if you’ll be using everything they offer. If you’re only interested in the internet, you may save money by unbundling. 

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While it helps to compare when there is competition, many areas offer only one internet service provider, and you may feel like you’re stuck with whatever they offer. However, you do still have options. Depending on your location, you can look for mobile hotspots, prepaid internet plans, or satellite internet. And even without competition, you may be able to negotiate for lower monthly costs. For instance, a speed test could indicate you aren’t getting the speeds you’re paying for. You may be able to use that as leverage to negotiate a lower rate. 

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Ask if there are any special deals, and keep an eye out for seasonal deals to help you negotiate for a better rate. You can also discuss financial constraints to find a service that works with your budget. 

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You may even be able to find subsidies for internet access if your household is considered low-income. Initiatives like the Affordable Connectivity Program were created to bridge the digital divide and ensure internet access for all, regardless of household income. Check with your provider, or reach out to your local government to see if you qualify for such programs to lower your monthly bill. 

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You may also be able to save money by buying your own equipment rather than paying monthly rental fees for your modem and router. Having your own equipment could save you money over the long run. 

How Much Does Internet Cost Takeaways

If you’re like most Americans, the internet is one of the most important services in your household. Understanding what you’re paying for can make a big difference in not only the reliability of your connection but your monthly budget. By knowing the needs of your household, shopping around, and negotiating with your provider, you can enjoy high-speed internet without breaking the bank.

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