How Much Should I Be Paying for High-Speed Internet?

Internet experts explain the costs of staying connected

The average advertised internet package in the US costs around $50–$60 per month, not including taxes and fees. Now, this isn’t a perfect representation of what people are actually paying because where you live, the speed you choose, bundled services, and other factors can affect internet prices. Many people pay above and below that price range, but that’s averages for you.

To get a better picture of how much you, specifically, should be paying for internet service, our internet experts compiled this resource to help you find the balance between internet prices and speeds.

What you need to know about internet prices

There are several tricky little details you should look out for when choosing an internet provider. We’ll let you in on the insider info so you can be a savvy internet shopper:

  • In most cases, internet prices go up when you sign up for more Mbps. More speed equals more money—but different providers may have similar speeds for different prices, so it pays to shop around.
  • Many providers offer discounts for new customers for the first year. After that first year, your prices may go up.
  • Advertised internet prices often come with the caveat that you need to enroll in autopay and/or paperless billing to get that price.
  • Renting a gateway, modem, or router from your ISP will almost always be more expensive than buying your own equipment.
  • There may be some hefty upfront costs to installing your internet, but many providers offer free installation for certain plans.

Need a better internet plan? We’ll help you find what’s out there. Just enter your zip code to get plans and pricing for your area:

What should my internet speed be?

As a general rule, internet speeds of at least 25 Mbps are usually pretty good for doing the basics with a little streaming thrown in. You might experience some buffering during peak hours or when you have more people at your house. If you’re worried about that, get a faster internet package.

The average speed advertised on internet-only packages in the United States is about 290 Mbps, but don’t worry if you don’t see speeds that fast in your area. That average is skewed by a high number of gigabit internet (1,000 Mbps) packages offered in certain areas but not available everywhere. Don’t have speeds that fast in your area? Don’t worry about it. Most people don’t need that much speed anyway.

If your internet speed has 10 Mbps per user (40 Mbps for a four-person household), that should be more than enough.

 

What’s the average internet plan like?

The available internet packages vary greatly by location but on average cost about $50 per month for about 100 Mbps of speed. When you opt for less expensive packages, you tend to get fewer Mbps per dollar. Higher-end packages will cost you more but tend to deliver more Mbps per dollar. Think of it like buying in bulk. To understand where these numbers come from, see our methodology below.

Keep in mind that these national averages might not apply to you, depending on what’s available in your area. While getting 2 Mbps per dollar spent is a good baseline to start with, a better deal than that (or even one that good) may not be available to you if no internet service providers (ISPs) in your area offer it.

While almost every major ISP offers an internet package of 1,000 Mbps or higher, most customers don’t usually subscribe to that package because it isn’t always available where they live or is just too expensive.

So, while the average speed of internet packages offered in America is about 290 Mbps, the average speed of internet packages customers subscribe to is actually closer to 100 Mbps.

How much internet speed do I need?

Now that you know what kind of pricing to expect, you’ll need to find how much internet speed you need. To do this, you should focus on two factors: the number of devices using your internet connection at the same time and the activities those devices will perform.

Once your internet reaches your home or business, the connection is shared with all the devices connected to your network. The more devices you have, the more speed you’ll need.

How you and your household use the internet also makes a big difference in how much internet speed you need. Activities that require a lot of data, like HD streaming, require a faster internet speed to work properly.

Logically, these two factors can cause your speed needs to add up quickly. Three people streaming in HD will require a lot more speed than one person streaming in HD, even if that one person is also browsing social media at the same time.

With so many variables, determining the right internet speed for your household can be difficult. We’ve simplified the process: leave the calculations to us by using our “How Much Speed Do I Need?” tool.

How much speed do you need

Other things to know when buying internet

Of course, monthly price and speed are most people’s primary concerns when deciding which internet service to order, but there are a few other factors that deserve consideration as well. We’ll cover the basics of each of them.

What types of services are available in my area?

All internet is not created equal. And all internet does not work the same way. Different types of internet have different strengths and weaknesses. Fiber internet is usually the fastest, satellite internet has the widest area of availability, and cable internet and DSL internet can be the most cost-effective.

For more on internet speed and the strengths of each type of service, check out our consumer’s guide to internet speed.

What about installation, setup, and activation fees?

They’re sneaky but they’re not invisible: you should know any up-front costs included with the agreement before you commit. Depending on what they are, they could drastically change pricing.

For example, if you’re comparing a 55 Mbps plan that’s $40.00 per month to a 70 Mbps plan that’s $50.00 per month, you may think you’re saving a lot of money by sacrificing a little speed. But if the $40.00 plan has a $100.00 installation fee and the $50.00 plan comes with free installation, you’ll save only about $20.00 the first year by going with the slower plan. Getting an extra 15 Mbps of speed each month for the whole year might be worth the extra $20.00 (about $1.67 per month).

Do I need to worry about data caps?

Some ISPs limit the amount of data you can use in a month or at particular times of the day within a month. This is usually called a “data cap” or “data threshold.” They’re always used with satellite providers like HughesNet or Viasat, but other types of providers also set data caps.

Be sure you know if your internet service agreement includes a monthly data cap before you sign it, especially if you plan to do a lot of HD streaming.

In many cases with landline connections, the cap is high enough (about 1 TB) that most users won’t get anywhere near it, but occasionally you may run into an internet service plan with a low data cap. That’s when you need to be careful—unless you’re itching to pay overage fees.

What happens when I sign a contract?

Before you put your name on any dotted line, consider the length of the agreement. Some ISPs require a one- or two-year agreement to get optimal pricing. In some situations, it’s worth paying a little extra per month to maintain the option to cancel at any time.

If you’re considering signing a contract agreement, make sure you understand the early termination fee (ETF) before making your decision.

With some ISPs, you can use the contract agreement to your advantage. If you find contracts that guarantee your price won’t increase, you may save yourself money over the long term. Some ISPs offer to lock in your price for one, two, or even three years. Some offer the same price for life. You can also find internet providers that will buyout your contract from your last provider if you sign with them. It’s all a matter of how you play your cards.

Get the best broadband deals

ISPs are almost always offering introductory promotions on internet specials. Taking advantage of these cheap internet plans is a great way to save money on internet service. Because these offers generally run for only the first year of service, switching providers after your promotional period ends can keep your internet costs down. Also, sometimes just threatening to leave will be enough for your ISP to offer you another promotional deal.

But before you switch providers, factor in any cancellation fees on your current agreement and any installation or setup fees on your new service. You don’t want hefty fees to spoil the savings.

If you don’t have the option to switch, you can usually knock a few bucks off your internet bill by bundling internet service with TV. If you’re considering this strategy, keep in mind that bundling saves you money only if you were planning to get TV service anyway. However, bundling isn’t the way to go if you need only internet. A bundle will make the internet portion of your bill less expensive, but the added expense of TV service will usually cost more than what you’ll save.

Find the best internet deals in your area:

 

Methodology

We analyzed 100+ standalone internet packages offered by over ten of the country’s biggest internet service providers to find what the average internet package in the US looks like. Keep in mind that these averages were calculated from an array of packages offered by ISPs. We weighted each package evenly and without regard for its availability. This means that a package that may be available in only one zip code was given the same weight as a package that’s available in almost every zip code.

Because of this, the averages expressed above reflect the average package offered, not necessarily the average package available. The availability of different packages and their corresponding zip codes varies to such a degree that to calculate a true availability average would require a massive data-gathering operation. We’ve got time to research internet but not that much time. Despite the limitations of this data, we can still draw some useful information from these averages. We hope you’ll use it to make sure you’re getting a good deal on internet.

Get the best package for you

Now that you know what an average internet package looks like, you’re ready to compare packages from internet providers available in your area. Enter your ZIP code below to get started.

Author -

With over five years writing about the internet industry, John has developed a deep knowledge of internet providers and technology. Prior to writing professionally, John graduated with a degree in strategic communication from the University of Utah. His education and experience make his writing easy to understand, even when covering complex topics. John’s work has been cited by Xfinity.com, PCMag, The Washington Post, Los Angeles Times, and more.

Editor - Cara Haynes

Cara Haynes has been editing and writing in the digital space for seven years, and she's edited all things internet for HighSpeedInternet.com for five years. She graduated with a BA in English and a minor in editing from Brigham Young University. When she's not editing, she makes tech accessible through her freelance writing for brands like Pluralsight. She believes no one should feel lost in internet land and that a good internet connection significantly extends your life span.

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