How much does an answering service cost?

If you're researching answering service costs, you're probably tired of missing important calls or feeling chained to your phone when you could be doing other important work (like actually performing the service that brings in money). 

As I’m sure you know by now, every missed call represents potential lost revenue—something no business can afford, not when there could be dozens of other competitors in your area ready to pick up the call that you just missed.

So, how much does an answering service cost per month? Whether you operate a real estate firm or a pest control company, many services can range from $200-$1,000+ per month, but it largely depends on what your specific needs are.

Let me break down exactly what you can expect to pay, without the marketing fluff or hidden surprises.

Understanding answering service costs

Traditional answering services usually charge per-minute or per-call, with charges between $0.75 to $1.95 per minute or $2.50 to $7 per call. This might sound reasonable at first glance, but these costs add up pretty quickly.

Many business owners quite often experience sticker shock when their first monthly bill arrives at $500 to $1000 for what they thought would be basic call handling. The call answering service industry has operated this way for decades, and while pricing can still be high (especially for small businesses), it’s still the more affordable option compared to hiring a full-time receptionist.

Here are a few key things you should figure out before choosing an answering service:

• How many calls do you receive every month? Do you need help with answering every call, or just the ones you miss (like after hours)?
• What’s your average call duration? Do your calls tend to last only a few minutes, or do you need help handling more complex calls that typically last 5-10 minutes or more?
• What call handling features does your business need? Do you need things like call forwarding, lead qualification, or appointment scheduling? Or do you need a simple message taking service?
• What’s your monthly budget? Even for basic message taking and a small number of calls, answering services can easily put a dent into your budget. Consider what you are willing to spend or can afford.

Telephone answering service costs

Most answering services or small business call centers use one of two pricing models, each with distinct advantages and pitfalls.

Per-call pricing

With per-call pricing, you pay a flat rate each time someone answers your phone, regardless of call duration.

This option works well for businesses with predictable, brief calls. For example, a dental office confirming appointments might benefit from per-call pricing if most interactions take less than a minute.

But, the model becomes problematic if you have more complex interactions. If your business needs detailed conversations (like explaining service options or troubleshooting), you'll pay the same amount for a 30-second call as for a 10-minute consultation.

Per-minute pricing

Most telephone answering services charge for the actual time spent handling calls. This model initially seems fairer since you only pay for what you use.

The downside? Long calls become expensive quickly, and monthly costs can be harder to predict. Watch out for minimum time charges—many services round up to the nearest 30 seconds or full minute, effectively charging you for time not used.

What are some factors that would increase answering service pricing?

Some businesses only need someone to take a simple message or after-hours call support, while others need a full appointment setting answering service or lead capturing. Depending on what features you need to hit your business goals, they will affect your live answering service pricing.

Call volume

Call duration is a huge driving factor in how much you’ll pay for your virtual receptionist service. Are your calls usually short, or are they more complex and often last 5-10 minutes long? Determining your call duration will help you decide which service is best for your business. 

Monthly call volume will also affect your answering service cost per month. Some business owners have seen prices range above $200 for just simple message taking and small call volume. 

Here is a simple equation you can use to estimate your average call duration: 

Total talk time / number of calls = average call duration

For example: 400 minutes per month / 150 calls per month = 2.7 minutes average call duration.

Call answering features

24/7 coverage often comes with most packages, but users may experience premium rates during holidays. Many services charge 1.5-2x normal rates for Thanksgiving, Christmas, and other major holidays.

Complex call scripts that require virtual receptionists to ask multiple questions or follow detailed protocols typically add 20-30% to base rates. Most answering services allow for script customization, but expect to pay a little more if you have very detailed call flows.

Bilingual support is usually an add-on for answering services, typically adding $25-50 monthly to base rates. Some answering services only provide bilingual support during certain hours, like ReceptionHQ for example. 

Appointment scheduling capabilities typically add $20-50 monthly, depending on complexity. If your scheduling system requires integration with specialized software, expect even higher costs.

Call routing is another add-on for some answering services that can tack on about $20-50 to your monthly service. 

Call recording comes with a lot of base plans, but with some it can add on another $10-30 per month. Call recording is great for situations where you want to monitor the quality of the conversations and use it for training purposes.

CRM integration usually incurs both setup fees and ongoing monthly charges for some services.

Hidden fees and charges can affect your call answering service cost

The advertised rate rarely tells the full story. When trying to figure out the right answering service, make sure to ask about any other fees. Watch for these common extra charges:

Setup fees typically range from $50-200 and cover account creation, script development, and training. Some services waive these fees during promotional periods or for annual contracts.

Holiday surcharges can double your per-minute rates on major holidays. If your business operates year-round, these charges can add hundreds to your bill during November and December.

After-hours service usually comes with most answering service packages. But, don’t just assume that every provider will offer it up at no additional charge. Some may only offer 24/7 service as an add-on.

Minimum monthly charges ensure the service provider receives a guaranteed amount regardless of actual usage. Even if you use just 10 minutes in a slow month, you'll still pay for your minimum plan level.

What can lower costs for your answering service pricing?

AI-powered solutions dramatically reduce expenses by automating routine interactions. While traditional services employ human operators for every call, an AI answering service can handle standard inquiries at a fraction of the cost. Some AI solutions like Upfirst can even handle appointment scheduling and lead capturing.

Optimizing call scripts to focus only on essential information can reduce average call times. Trimming just 30 seconds per call could save a business with 500 monthly calls about $100+  at typical per-minute rates.

Bundling services may result in discounted rates. Some providers offer 10-15% discounts when combining answering services with live chat or email management.

Myth-busting some misconceptions about telephone answering service costs

Here are a few common misconceptions we hear all the time—let’s set the record straight so you can budget (and negotiate) with confidence.

Myth #1: “Every single ring or missed call counts toward my bill.”

Reality: Most providers only bill for connected calls—either per-call or per-minute—so abandoned rings, hang-ups before an agent answers, or calls flagged as spam usually don’t incur charges. Always ask your rep how they handle “no-answer” and wrong-number calls.

Myth #2: “A flat-rate plan is always the cheapest option.”

Reality: Flat rates give predictability, but if your team rarely hits the minute cap, you may overpay. Conversely, if you shoot past your allotment, you’ll face steep overages. Hybrid or tiered plans can be smarter for businesses with seasonal spikes or highly variable volumes.

Myth #3: “After-hours and holiday coverage come standard.”

Reality: While many services advertise 24/7 support, “standard” hours often exclude weekends or major holidays. They may tack on a 1.5× to 2× surcharge. Double-check exactly which days and times are covered (and at what rate) before you sign on.

Myth #4: “AI-powered answering services can’t handle anything more than basic message taking.”

Reality: Today’s conversational AI can qualify leads, capture appointment details, even integrate with your CRM, often at a fraction of the cost of traditional answering service plans. The trick is designing your call flows so the AI knows when to hand off to a live agent.

Myth #5: “You can’t negotiate setup fees or minimums.”

Reality: Almost every provider has some wiggle room. Ask for waived or reduced setup fees, especially if you’re willing to prepay annually or guarantee a certain call volume. If they won’t budge, use that as leverage to secure better per-minute or per-call rates.

Key takeaways

Several factors will affect how much your business will spend on an answering service. It’s important to figure out how many calls you need taken care of per month, and how many minutes you spend on the phone on average. Then, piece together what your typical call flow is and determine what call handling features you will need.

Finding out who the right provider for you is and the answering service costs that come with it may seem overwhelming at first, but it’s much more affordable compared to hiring a full-time employee to take your calls.

When evaluating options, look beyond the sticker price to understand the total value:

• How many potential customers are you currently losing to missed calls?
• What would an extra 5-10 hours weekly—freed from phone interruptions—be worth it to your business?
• How would improved customer service impact your reputation and referral rates?

Remember: The true cost of missed calls often exceeds the investment in a quality answering service. Choose a provider that helps you capture every opportunity while maintaining your peace of mind.

Final thoughts: your answering service cost per month doesn’t have to break the bank

If you run a small business, spending an extra $200+ a month on an already tight budget is a hard choice to make, but the right answering service doesn't have to break the bank. 

While traditional services often cost $200-1000+ monthly, modern AI-powered solutions like Upfirst offer professional call handling at an affordable cost, with plans starting at $24.95/mo for 30 calls.

In every plan, you get powerful call handling features like call transferring, message taking, appointment scheduling, lead qualification, full script customization, and more without any extra add-on charges. It’s the ideal solution for small businesses that have trouble with the idea of spending over $200/mo for call answering.

Ready to try? Test it out today and get started with a 14-day free trial. Onboarding only takes minutes.