How Much Should Internet Cost Per Month? Ensure You’re Not Overpaying!

The average American household spends a significant fraction of its income on bills every month. Housing is typically the most significant monthly expense, commonly taking away almost one-third of a household's budget. For comparison, studies from the U.S. Bureau of Labor Statistics indicate that transportation usually costs 14% of the budget, income tax costs 13%, and the average household spends about 10% of their monthly budget on food.

Housing costs, which generally account for 30% of a household's budget, are made up of several elements, including:

• Rent or mortgage payments
• Insurance
• Property taxes
• Repairs and maintenance
• Utility bills

Utility bills, which include electricity, gas, oil, water, and telephone, generally account for almost 20% of all housing-related costs each month. According to Bankrate, the average expenditure on housing-related costs increased by 3.5% in 2020, with utility bills increasing yearly.

Worryingly, figures from the U.S. Census Bureau indicate that the poverty rate in the United States is 12.8% as of 2022. The poverty rate has gradually increased over recent years. Consumer debt is also increasing. With continually rising costs of living, it is of even greater importance that Americans get the best deals on their bills.

Internet is a vital service in many American homes. In addition to remote workers and children completing studies online, internet connectivity is an invaluable tool for retail, leisure, and entertainment options. Keep reading to learn how to lower your internet costs per month.

How Much Does Internet Cost Per Month?

Although inflation is currently high in the United States, with rising costs creating worry and concern, the overall cost of internet per month has remained relatively stable. Figures from the U.S. Bureau of Labor Statistics indicate that internet costs have stayed below the inflation level and remain relatively affordable for the average American.

Based on figures from the 2022 Broadband Pricing Index Report, the average cost of internet service is $45.97 per month, based on the most popular services from internet providers. This is down 5.1% from 2021, when the average cost for comparable criteria was $48.42.

When adjusted to account for inflation, monthly internet services cost an average of $42.59 in 2021. This figure dropped by 14.7% by 2022, providing a real price of $36.33.

Looking at the fastest speed options available from internet service providers, 2022's average nominal cost of $73.55 is down 1.7% from $74.80 in 2021. In real price terms, this is an 11.6% decrease from $65.75 to $58.12.

Table Shows Real and Nominal Prices of Top Consumer Choice and Fastest Internet Services

Factors That Influence Internet Prices

Several factors influence how much a consumer ultimately pays for their internet connection.

Internet Speed

While many people are drawn to marketing claims of high-speed internet, in reality, consumers may be paying more to get higher internet speeds that they simply don't need. For example, a business internet user or avid gamer generally needs a faster connection than a casual internet user. Additionally, a household with super-fast upload and download speed will pay more for its monthly connection than one with a more basic internet plan. The FCC's Broadband Speed Guide is a helpful tool for checking your personal internet speed requirements.

Type of Internet Connection

Several types of internet connection are available, including:

• Dial-up
• Digital Subscriber Line (DSL)
• Cable
• Wireless
• Fiber optic
• Satellite
• Cellular

The type of internet connection affects the connection speed, reliability and monthly internet bill. It's important to keep in mind that some areas may have limited options when it comes to the type of internet connection available.

Dial-up and DSL internet connections are the more traditional ways of accessing the internet, using a phone line and modem. These may be the only choices available in more rural parts of the country. Connections are typically much closer than cable or wireless options.

Satellite internet is one of the newest types of internet connection. Although among the slowest types of internet connection, satellite internet plans often make services available to people in areas that otherwise wouldn't have internet access.

Fiber optic is one of the fastest internet connection types, followed by cable and wireless.

Additional Costs

Added costs can increase your internet bill beyond the base package price. For example, anyone who rents equipment, such as a modem, will pay more than somebody who owns their equipment outright. Taxes and user fees can also affect the final monthly bill.

If you sign up for an introductory deal or special offer, keep in mind that your bill will go up at the end of any promotional period. Naturally, including other services in an overall package, such as cable TV and/or mobile phone use, will affect how much you pay each month.

Are You Paying Too Much for Internet?

There are several things to take into account when considering how much you pay for internet, including:

• Whether it would be more cost-effective to buy equipment, such as a modem or router, rather than paying rental fees
• If you truly need the speed that you are currently signed up for
• If you're receiving the speeds that you pay for
• Whether you have thoroughly compared all available options, including types of internet connection and internet service providers
• Whether you've recently evaluated your options intending to change supplier
• Whether you've recently evaluated your options intending to change supplier

BILLSHARK can help you lower your monthly internet prices by contacting your internet company on your behalf and discussing your payments. Not only do we have a high success rate when it comes to saving consumers money, but there's also no charge if we cannot reduce your bills. Keen to find out more about assistance with your personal finances? Contact BILLSHARK to learn more about bill negotiation and how it could save you a significant amount of money every month.