Phone and internet annual cost: what households pay
Cell phone plans and home internet are recurring monthly bills that feel routine, but they add up to significant annual costs. Here's what common phone and internet services cost per year.
Common phone and internet costs per year
These are example prices from October 2026, representing typical mid-range plans. Actual prices vary by carrier, data limits, speed tier, promotional rates, and bundled discounts. This is not financial advice.
Cell phone plan (single line) — $50/mo
$600/year
Cell phone plan (family 4 lines) — $150/mo
$1,800/year
Home internet (broadband) — $65/mo
$780/year
Home internet (fiber) — $80/mo
$960/year
Mobile hotspot — $35/mo
$420/year
Landline phone — $25/mo
$300/year
Typical household total
A household with a family phone plan (4 lines at $150/month) and home internet ($65/month) pays $2,580 per year for connectivity. That's more than many households spend on streaming services.
If each person in a household pays for their own phone line instead of sharing a family plan, the total yearly cost can be much higher. Four separate $40/month plans cost $1,920/year versus $1,440/year for a shared family plan.
Unlimited vs metered data
The example shows a single unlimited line at $40/month. If you use your phone mostly on Wi-Fi at home and work, a metered plan may cost less. Check your actual data usage in your phone's settings or carrier app before deciding.
Enter your current phone plan cost in the free calculator to see the yearly total, then use the Scenario Lab in the one-time plan report to model what switching to a different plan would save over 1, 3, and 5 years.
Prepaid vs postpaid plans
Prepaid carriers (Mint Mobile, Visible, Cricket, Metro by T-Mobile) use the same networks as major carriers but may charge less. The trade-offs include prepayment (you pay for 1–12 months upfront), deprioritized data during network congestion, and limited customer service.
If you have good coverage from a prepaid carrier and don't need carrier retail support, enter both your current plan and a prepaid alternative in the calculator to compare yearly costs. The Scenario Lab in the one-time plan report models the long-term difference.
Home internet speed tiers
The example shows broadband internet at $65/month ($780/year) and fiber at $80/month ($960/year). Internet providers charge by speed tier. For most households, 100–200 Mbps is enough for streaming, video calls, and browsing.
Enter your current internet bill in the calculator to see the yearly cost. If you're paying for a higher speed tier than you use, check with your provider about downgrading and use the Scenario Lab to model the yearly savings.
Bundled discounts
Many carriers offer bundles: phone + internet from the same provider may cost less than buying each separately. Some cable companies include basic cable TV in their internet bundles, though that can lead to paying for both cable and streaming services.
Before bundling, compare the bundled price to the cost of buying each service separately from the cheapest provider. Enter both scenarios in the calculator to see which costs less per year.
Hidden fees and equipment rental
Advertised prices often exclude taxes, regulatory fees, and equipment rental. Check your actual monthly bill to see what you're really paying. Some internet providers charge a monthly modem rental fee; buying your own modem may cost less over time if your provider allows it.
Use your actual monthly bill amount (including all fees) in the free calculator to get an accurate yearly total for your phone and internet costs.
Mobile hotspot vs home internet
The example shows a mobile hotspot at $35/month ($420/year). Some people replace home internet with a mobile hotspot if they have strong cellular coverage and light data usage. Most home internet plans have no data caps while hotspot plans may have soft caps (deprioritization after a certain usage threshold).
If you work from home, stream 4K video, or have multiple people online simultaneously, home internet is usually more reliable. Enter your actual costs for either option in the calculator to compare yearly totals.
