How much should I pay someone to answer my phone? (2025 guide)

Missing calls can mean missed opportunities for your business, whether it's potential customers, important updates, or project delays. But figuring out what to pay someone to answer your phone can be tricky. Prices vary a lot depending on the type of service, the hours you need, and how many calls you get.

So, how much should you actually pay someone to answer your phone? What are your options in 2025?

This guide breaks down the main pricing models, what affects the cost, and how you can find the right fit for your budget and call needs. We'll look at hiring in-house staff, virtual receptionists, and the growing world of AI phone answering services.

Why small business owners care about this question

Every missed call could mean lost revenue, frustrated customers, or wasted marketing dollars. Plus, those constant “quick calls” that interrupt your day? They add up, making it hard to focus on your real work.

Here are some common reasons business owners look for phone answering help:

• Professional image: Relying on voicemail can make your business seem less established than competitors who always answer live.
• Budget worries: Traditional answering services sometimes have confusing pricing, making it hard to plan your spending.
• Coverage gaps: In-house staff can’t always answer every call—think lunch breaks, sick days, or after-hours.

Finding the right solution is about balancing cost, quality, and reliability.

Your main options for phone answering in 2025

There are three main ways to make sure someone answers your business phone. Each has its own pricing style and pros and cons.

In-house receptionist (traditional hire)

This is a direct employee who handles your calls. Their total cost isn’t just the salary. You’ll also pay for payroll taxes, benefits, and providing a workspace.

For example, if you pay a receptionist $35,000 a year, your real cost is closer to $45,000–$50,000 when you add in all the extras. That’s about $3,750–$4,200 per month, no matter how many calls they answer.

And for small business owners or solopreneurs, that's a cost that's likely not in the budget.

Virtual receptionist or answering service (human outsourced)

These services use trained agents who answer calls remotely for several businesses. Their fees usually depend on how many minutes or calls you use, or you can pick a monthly plan.

Most answering services charge $0.65–$1.75 per minute. If you get 200 calls a month, averaging 2 minutes each, you’d pay between $260 and $700 per month, depending on the provider.

This is a popular option for many businesses, but the rising costs of a traditional answering services is starting to push a lot of businesses away.

AI answering service (modern option for small business)

AI-powered receptionists use AI technology to answer your calls 24/7. You set up a knowledge base and information, and the AI voice agent follows your instructions.

AI phone answering services usually comes with a flat monthly fee—typically $25–$150 per month. These services can handle lots of calls at once, and they don’t take breaks or call in sick.

A lot of small businesses are turning towards these AI answering services because of the affordable cost and simplicity of getting started.

How different pricing models work

Understanding how pricing works will help you choose the best option and avoid surprise bills at the end of the month.

Per-minute pricing looks simple, but watch for hidden fees. Some providers round up calls to the next minute, charge for hold time, or add extra fees for things like transfers or booking appointments.

Monthly plans often include a set number of minutes or calls (like 200 minutes or 90 calls). If you go over, you’ll pay extra. Always check the details so you know what’s included.

What really affects the cost

Several key factors can change how much you’ll pay for a phone answering service:

Call volume and call length

More calls and longer calls mean higher costs if you’re paying by the minute or by the call. Simple math for example: a 5-minute call costs more than double a 2-minute call.

• Simple messages: Usually 1–2 minutes to get a name, number, and short message
• Booking appointments: Often 3–5 minutes per call
• Sales or detailed questions: Can run 5–10 minutes, especially if the caller needs help

Coverage hours needed

If you want calls answered outside regular business hours, expect to pay more. Holidays and weekends may also cost extra.

Some businesses just need help during busy times; others need full 24/7 coverage, especially in emergency or national service industries.

Script complexity

Simple “take a message” scripts are cheaper than more complex workflows, like booking appointments, screening leads, or transferring calls.

Basic scripts: Name, number, and reason for the call.

Advanced scripts: Appointment booking, price quotes, service area checks, CRM data entry, and more.

Special industry needs

Some industries, like law, healthcare, or finance, need receptionists with extra training or compliance knowledge. These services usually cost more due to privacy requirements and specialized tasks.

What features does your business really need?

Every business is different. The key is to match phone answering features to your real needs, so you’re not overpaying for bells and whistles.

Basic message taking

If you mostly just need someone to answer, get a name and number, and pass along a message, this is the most affordable option. It’s great for contractors, consultants, or service providers who call back at set times.

Appointment scheduling

If you need callers to book directly into your calendar, look for services that can connect with your scheduling tools. They’ll need to know your availability rules and send out confirmations to customers.

• Calendar integration: Works with Google Calendar, Outlook, etc.
• Custom availability: Follows your booking rules and preferred times
• Confirmations: Sends emails or texts to clients

Advanced call handling

If you want call transfers, CRM updates, lead screening, or bilingual answering services, you might to pay more, depending on which type of service you go with. These features can improve your customer experience, but they cost extra.

Part of what makes AI phone services like Upfirst so affordable is that they don't charge extra for these types of features, which makes it attractive for small businesses with limited budgets.

Comparing hiring staff vs. using a service

Here’s a quick side-by-side for a business getting about 150–200 calls per month:

In-house receptionist: $3,000–$4,000/month, including all costs. Great for maximum personalization, but only covers business hours unless you hire more than one person.

Traditional answering service: $200–$600/month, depending on call volume and features. Real people answer, but you have less control over how each call goes.

AI answering service: $25–$160/month for 30-300 calls. Always available, very affordable, and no missed calls, but no human touch.

The right choice depends on your call volume, your budget, and how much a personal experience matters to you and your customers.

How to figure out a fair price for your business

Here’s a simple way to estimate what you should pay if you pay by the minute:

1. Track how many calls you get each month
2. Estimate your average call length (2–3 minutes for basic calls, 4–6 minutes if you book appointments)
3. Determine what level of features you need
4. Multiply your calls × average minutes × the provider’s rate
5. Compare the monthly cost to the value of a typical customer

Example: 180 calls × 2.5 minutes × $1.10 = $495/month. If your average customer brings in $500, then one customer covers your phone answering for the month—and you won’t miss any leads.

Why more businesses are switching to AI phone answering

Many small businesses are turning to AI answering services because traditional ones have become too expensive and inconsistent. Human receptionists can make mistakes, forget instructions, or even come across as rude, hurting a business’s reputation.

With AI, owners have full control. They can set exactly how calls are handled, adjust scripts anytime, and make sure every caller gets a friendly, consistent experience. Plus, AI answering services cost a fraction of what traditional providers charge and can handle as many calls as you need without extra fees.

To sum it up, AI answering servies are:

• More affordable, especially for small businesses that can't afford to fork out $500  per month, even for just a simple message taking service.
• More consistent. This might surprise you, but AI virtual receptionists can follow exact directions more frequently than human ones. It's one that I hear all the time from business owners, and a part of the reason of why they switch to AI. 
• Easily customizable. Customizing how AI handles calls is in your full control. 

What’s a fair price to pay?

Here’s what most small businesses should expect to pay in today’s market:

Traditional answering services: $150–$800/month, depending on call volume and features.

In-house reception: $3,000–$4,000/month for a full-time employee during business hours.

AI answering services: $25–$160/month for 30-300 calls, 24/7 coverage with a range of features.

Your own cost will depend on how many calls you get, what features you need, and when you need coverage. The best first step? Track your calls for a month so you have real numbers to work with.

Why businesses are choosing Upfirst

If you’re thinking about trying an AI answering service, Upfirst makes it easy. It’s affordable, simple to set up, and you can start taking calls in less than a day.

Our plans start at just $24.95 per month for 30 calls—no complicated setup, no long contracts, and no hidden fees. Just a reliable AI receptionist that helps you sound professional and never miss a call.

Check out what some of our customers are saying about us here.

Get started with Upfirst today with a 14-day free trial and see how simple it can be to have every call answered, every time.

Frequently asked questions about phone answering costs

How much does a virtual receptionist cost per month?

Most human virtual receptionist services cost $150–$800 per month for small businesses, depending on your call volume and what features you need. If you pay by the minute, expect rates between $0.65 and $1.75 per minute of talk time. 

If you choose an AI answering service, expect to pay much lower costs that range from $25-$200 per month.

What’s cheaper: hiring a receptionist or using an answering service?

Answering services are almost always cheaper than hiring someone. A full-time receptionist typically costs $3,000–$4,000 per month, including benefits. Answering services usually run $150–$400 per month for the same call volume.

Do AI phone answering services actually work for small businesses?

Yes! Modern AI answering services do a great job with basic calls like taking messages or scheduling appointments. They’re best for businesses on a budget with simple, predictable call needs and clear instructions for common questions.

How much should I budget for after-hours phone coverage?

After-hours coverage is usually 25–50% more than regular business hours. If your main plan costs $200/month, adding nights and weekends might bring it up to $250–$300/month, depending on your provider’s rates.

AI answering services typically don't charge for after-hours coverage. Their affordable plans come with 24/7 answering, even at the starting packages.