Are You Paying Way Too Much for Home Internet? See How to Save $800 in 2024

Monthly bills have a way of sneaking up on you. The costs of streaming subscriptions, car insurance, and other necessary recurring charges have all gone up in the past few years. But one monthly bill in your budget that might need more attention is the cost of home internet service.

I recently checked my home internet monthly statement and was shocked to discover that I'm paying $142 per month for internet. Although I'm pretty happy with our high-speed cable internet service, that number feels high to me. Especially since there are lower-cost options like high-speed fiber internet getting installed in our neighborhood.

Let's look at the latest trends in home internet costs to see if you're overpaying for home internet -- and what you can do about it.

Average home internet costs: Too high, or fairly priced?

It can be hard to pin down accurate numbers for average home internet costs in America. That's because your exact price will depend on your home internet speed, your type of internet service, where you live, and what kind of plan you sign up for. But according to recent survey data from Reviews.org, Americans spend an average of $81.29 per month on home internet. Another report from Allconnect found that the average internet price in U.S. urban areas was $83.75 per month.

There's some good news here: even if your home internet bill has gone up in recent years, you might be getting faster internet speeds for the money. Allconnect research found that people in U.S. cities have seen their internet speeds nearly double in the past five years, while prices have stayed flat.

If you look at the price you're paying per Megabit-per-second (Mbps) of internet speed, you might feel better about your home internet bill. Internet service might be getting a bit more expensive, but it's also getting better. When I did an internet speed test on Reviews.org, it told me that I'm getting 244 Mbps of download speed, which was faster than 97% of the speed test results it's seen for my ZIP code. According to the speed test results, other providers in my area had lower average speeds than what I'm getting now. Maybe $142 per month is worth paying.

How to save money on home internet

But on the other hand: even if you're happy with your home internet speed, you can still make your personal finances happier, too. Try these easy strategies to save money on home internet.

1. Downsize your download speeds

Are you paying for more internet bandwidth than you really need? Sometimes you can save money on home internet by switching to a lower-priced plan with slower speeds.

For me, downsizing my internet is not an option. I need a high-speed internet plan with 244 Mbps (or more), because I work from home, my family watches lots of streaming services, and my teenage kids play online video games with their friends all day and night. My children use so much internet bandwidth, it's amazing that they have not caused regional internet outages.

But if you are not such a heavy user of internet bandwidth, you might save money by switching from, for example, a 300 Mbps plan to a 100 Mbps plan.

2. Get an introductory offer from a new internet service provider

Do you have new internet service providers (ISPs) moving into the neighborhood? The availability of high-speed fiber internet has increased significantly in the past few years.

For example, in my neighborhood, there are new fiber internet providers offering introductory deals for $75 per month or $50 per month, with speeds up to 500-940 Mbps. I'm not sure if these other services would actually deliver the advertised speeds; sometimes the actual internet speeds don't reach the highest levels.

Cellular phone service providers like T-Mobile and Verizon also offer 5G home internet service, promising fast speeds that could be competitive with your current ISP. T-Mobile home internet costs $50 per month (if you also have T-Mobile phone service), and Verizon 5G home internet starts at $35 per month if you bundle it with Verizon 5G mobile phone service. Both of these companies also offer to help cover your early termination fees when you switch.

Switching internet providers might not be the right move for me, but if you're in a similar situation, you might check your options. Even if I switched from a $142 per month plan to a $75 per month plan, I would save $67 per month on home internet -- or $804 per year!

3. Demand a discount

If you're pretty happy with your current ISP, you can still renegotiate the terms of your customer relationship. Call the internet company and ask for a discount. Here's a script you can use: "Hi, I've noticed lately that some other internet providers in my area are offering better prices. Is there anything you can do to help me stay with your company?"

Hopefully the customer service rep will get the hint, and will transfer you to the Retention Team. (You can also just ask to speak with the Retention Team.) This is how home internet companies keep you happy as a customer -- the squeaky wheel gets the grease, as the saying goes. If you call to complain about your price, and mention that you're looking at other options, the ISP might decide to cut you a deal.

Bottom line

Depending on where you live and how many streaming services you're binge-watching at a time, you might be able to save hundreds of dollars per year on home internet service. Check your options for home internet in your ZIP code and see if you can save $30-$50 (or more) out of your monthly budget.