How Much Should I Be Paying for High-Speed Internet?
The Average Internet Package
The available internet packages will vary greatly by location but on average cost about $50.00 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 may not be available in your area. While 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 if no ISPs in your area offer such a package.
How much internet speed do you 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.
More to Consider When Choosing an Internet Package
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.
What types of services are available in your area?
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 can be the most cost-effective. For more on internet speed and the strengths of each type of service, check out our speed guide below.
Up-Front Costs (Installation, Setup, or Activation Fees)
Along with knowing the speed and price you should expect from your internet subscription, consider any up-front costs included with the agreement.
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. 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).
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 often the case with satellite providers, but other types of providers may 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, the cap is high enough that most users won’t get anywhere near it, but occasionally you may run into an internet service plan with a low data cap.
Contracts and Cancellation Fees
You should also 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 and take it into account 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.
Finding 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.
We analyzed 100+ stand-alone internet packages offered by over ten of the country’s biggest Internet Service Providers to find what the average internet package in America 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, making it impractical.
Despite the limitations of this data, we can still draw some useful information from these averages. For example, looking at the mean, median, and mode of the promotional pricing information, we get $50.00, $45.00, and $57.00 respectively. These numbers are all close together. This means the average cost per packages offered and the average cost of packages available are similar.
On the flipside, the mean, median, and mode for the internet speeds offered are 1,000 Mbps, 100 Mbps, and 287 Mbps. That’s a wide range. This is where extrapolating this data becomes problematic.
While almost every major Internet Service Provider 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 or is often 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.
The Next Step
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.
John Dilley continually offers unique insights and a fresh point of view. He writes for several websites including CableTV.com and HighSpeedInternet.com. Along with writing, John has a passion for music. He is the lead vocalist and secondary guitarist for The Family Gallows in Salt Lake City. John also shares his personal ideas and philosophies through stories he publishes on his blog, JDilley’s Questions.