How Much Is a Cell Phone Bill Per Month for One Person?
Demystify your monthly cell phone bill. Explore the core elements and hidden charges that determine your personal wireless expenses.
A cell phone bill for one person encompasses a range of charges beyond the advertised monthly plan cost. Individual costs can differ significantly based on usage patterns, device choices, and selected services.
Average Monthly Cell Phone Costs
The average monthly cell phone bill in the U.S. for an individual typically ranges from $50 to $100 per month. Broader averages, around $141 to $157 per month in 2024, often include multiple users or device financing.
For a single person, basic plans with limited data from Mobile Virtual Network Operators (MVNOs) can be as low as $30 per month. Unlimited data plans generally cost more, with major carriers offering single-line unlimited plans from approximately $50 to $90 per month before taxes and fees. Prepaid plans offer lower monthly costs and more flexibility than postpaid plans, as they typically do not involve long-term contracts.
Key Determinants of Your Bill
Several factors influence the core service cost of a cell phone bill. The amount of data included in a plan significantly impacts its price, with tiered data plans (e.g., 5GB, 10GB) costing less than unlimited data options. Exceeding a plan’s data allowance can lead to additional charges or reduced speeds, sometimes referred to as data overages or deprioritization.
Device financing or leasing arrangements add a recurring charge to the monthly bill. Instead of a large upfront payment, the cost of the phone is spread out over an extended period, such as 24 or 36 months, becoming part of the regular statement. This charge is distinct from the service plan itself.
The type of plan chosen, whether postpaid or prepaid, affects the monthly outlay. Postpaid plans typically offer more features and higher data allowances, often requiring a credit check and a contract. Prepaid plans involve paying in advance for service, providing budget control without long-term commitments. The carrier also plays a role, as major providers and MVNOs have different pricing strategies for comparable services.
Understanding Additional Charges
Beyond core service and device costs, additional charges can increase a cell phone bill. Taxes and government fees are mandatory, including sales tax, 911 fees, and the Federal Universal Service Fund (FUSF). The FUSF, administered by the FCC, supports telecommunications services in rural areas, for low-income consumers, and for schools and libraries. This charge appears as a percentage of the bill, changing quarterly; most carriers pass it on.
Wireless taxes and fees, including the FUSF, average 24.5% to 26.8% of taxable voice services. State and local taxes vary by location, with some states having higher rates. For instance, 911 fees, which fund emergency services, can range from a few cents to several dollars per line per month, depending on the state and locality.
Carriers impose regulatory fees or surcharges to recover operational costs, such as administrative or network maintenance fees. These are not government taxes and can add a few dollars per line each month. Optional add-ons, such as phone insurance, international calling or roaming packages, and mobile hotspot allowances, further contribute to the total bill. Phone insurance typically costs between $6 to $17 per month, depending on the device and coverage. International roaming add-ons can vary widely, from daily passes costing around $10-$12 to monthly packages or per-gigabyte rates. Mobile hotspot data, if not included in the base plan, can be added for an extra fee, often around $10.
Estimating Your Personal Monthly Cost
To estimate your monthly cell phone cost, assess individual usage habits. Review past phone bills to determine average monthly data consumption, typical call minutes, and texting volume. Consider whether a new device purchase or upgrade is necessary, as financing a phone will add a recurring monthly payment.
Once a suitable core plan is identified, factor in potential device payments. Add an estimate for taxes and fees, typically 15% to over 25% of the base plan cost, depending on location. Apply this percentage to the service portion of the bill.
Finally, account for optional services. If phone insurance is desired, incorporate its monthly premium ($10 to $15). If international calling or mobile hotspot capabilities are needed, add their estimated costs. Many carriers provide online tools or plan builders to calculate a comprehensive estimate, allowing adjustments before committing.