How Much Does an Answering Service Cost? Complete Pricing Breakdown

Key Takeaways

Typical monthly range: $100-$500+ depending on volume, features, and pricing model Three pricing models: Per-minute ($0.65-$1.95), per-call ($0.80-$5+), flat-rate ($199+) Hidden fees can double your bill: Overages, rounding, setup costs, and add-ons add up fast Major provider pricing:

• Ruby: $319/month base + $5.19/additional minute
• AnswerConnect: $325/month base + per-minute charges
• NextPhone: $199/month flat with unlimited calls At 50+ calls/month: Flat-rate pricing typically beats per-call models The ROI test: One captured job can pay for months of answering service

Answering Service Pricing: The Quick Overview

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Before diving into details, here's what you can expect to pay across the market:

Low end ($100-$200/month): Entry-level plans with limited included calls or minutes. Typically 20-50 calls or 50-100 minutes. Overages apply quickly.

Mid-range ($250-$500/month): Most small businesses land here. Moderate call volume included, basic features, some integration options.

High end ($500-$1,000+/month): High volume, premium features, or specialized industries (legal, medical). Live agent services at scale fall into this tier.

Several factors affect where you'll fall on this spectrum:

Call volume: More calls = higher cost (except with flat-rate plans) Call duration: Longer calls consume more minutes, inflating per-minute bills Coverage hours: 24/7 costs more than business-hours-only with many providers Features: Appointment scheduling, CRM integration, and call transfers often cost extra Agent type: Live human agents cost 2-5x more than AI-powered services

The catch that trips up most buyers: advertised "starting at" prices rarely reflect actual costs. A $199/month plan with overage charges can easily run $500+ once you exceed included minutes. Always calculate your expected total, not just the base rate.

The Three Pricing Models Explained

Understanding how you'll be charged is the first step to predicting your actual costs.

Per-Minute Pricing

With per-minute billing, you pay for the actual time agents spend handling your calls. This is the most common model among traditional live answering services.

Typical rates: $0.65 to $1.95 per minute

How it works: The clock starts when the agent picks up and stops when they hang up. Your monthly bill equals base fee plus (total minutes used x per-minute rate).

Pros: You only pay for actual talk time. If calls are short and infrequent, costs stay low.

Cons: Bills are unpredictable. You won't know your total until month-end. There's also an uncomfortable incentive for some services to keep callers on the line longer than necessary. Reddit users have reported exactly this concern with certain providers.

Watch out for: Rounding increments matter enormously. Some services round to 15-second increments, others to 30 seconds or even full minutes. A call lasting 1 minute and 5 seconds could bill as 1.25 minutes, 1.5 minutes, or 2 minutes depending on the provider. Over 50 monthly calls, this difference adds hundreds to your annual cost.

Best for: Very low volume businesses (under 25 calls/month) with consistently short calls (under 2 minutes average).

Per-Call Pricing

Per-call pricing charges a flat fee for each call, regardless of duration. This sounds simpler, but has its own complications.

Typical rates: $0.80 to $5+ per call

How it works: Every answered call costs the same flat amount, whether it lasts 30 seconds or 10 minutes.

Pros: More predictable per interaction. Long calls don't spike your bill the way per-minute does.

Cons: Every call counts equally, including wrong numbers, hang-ups, and 15-second "never mind" calls. You're paying the same for a 30-second wrong number as a 5-minute appointment booking.

Watch out for: Read the fine print on what counts as a "call." Some providers count any answered interaction; others have more reasonable thresholds.

Best for: Businesses with consistent call durations, particularly those with longer average calls (3+ minutes) who would get penalized under per-minute billing.

Flat-Rate/Unlimited Pricing

Flat-rate pricing charges a fixed monthly fee with unlimited calls included. This model has grown increasingly popular, particularly among AI-powered services.

Typical rates: $199 to $400 per month

How it works: You pay the same amount regardless of whether you receive 20 calls or 200 calls.

Pros: Complete budget predictability. No overage anxiety. No surprise bills. The more calls you receive, the lower your effective cost-per-call becomes.

Cons: If your call volume is very low (under 20 calls/month), you may be overpaying compared to per-call options. Though even here, the peace of mind often justifies the premium.

Best for: High volume businesses, variable or unpredictable call patterns, anyone who prioritizes budget certainty over potentially squeezing out marginal savings.

Quick Comparison

Here's how the same 50-call month looks under each model:

At 100 calls, the flat-rate advantage becomes even more dramatic.

What Major Providers Actually Charge

Let's move beyond vague ranges and look at real pricing from specific providers. These numbers come from published pricing and direct research as of late 2024.

Ruby Receptionists

Ruby positions itself as the premium option, emphasizing highly-trained live receptionists and a strong company culture.

Base pricing: $319/month for 50 receptionist minutes Higher tiers: $599/month (100 minutes), $999/month (200 minutes), $1,599/month (500 minutes) Overage rate: $5.19 per additional minute

What's included: Live US-based receptionists, custom greetings, call transfers, message taking, basic appointment scheduling.

The real math at 50 calls/month: Assuming an average call duration of 2.5 minutes, 50 calls consume 125 minutes. Your included 50 minutes are gone quickly, leaving 75 overage minutes at $5.19 each = $389.25 in overages.

Total: approximately $708/month

The real math at 100 calls/month: 250 minutes needed. 200 overage minutes x $5.19 = $1,038 in overages.

Total: approximately $1,357/month

Best for: Businesses that specifically need premium live receptionists and have relatively low call volume, or who are willing to pay premium prices for human touch.

AnswerConnect

AnswerConnect offers 24/7 live answering with an emphasis on appointment scheduling and lead qualification.

Base pricing: $325/month for their starter plan (approximately 200 minutes included) Overage rate: Per-minute charges apply after included minutes

What's included: 24/7 live answering, appointment scheduling, message taking, call transfers, basic CRM integration.

The real math at 50 calls/month: With 125 minutes needed and 200 included, you stay within plan at 50 calls. Estimated cost: approximately $325-$400/month depending on exact plan.

The real math at 100 calls/month: 250 minutes needed. Overages apply. Estimated cost: approximately $600-$875/month.

Best for: Moderate volume businesses that need appointment scheduling and prefer live agents. More cost-effective than Ruby at similar volume.

Smith.ai

Smith.ai uses per-call pricing and positions itself toward professional services, particularly legal.

Base pricing: $255/month for 30 calls included Higher tiers: $675/month (90 calls), $1,275/month (180 calls) Overage rate: $8.50 per additional call

What's included: Live receptionists, lead screening, appointment booking, intake forms, call transfers.

The real math at 50 calls/month: 30 included calls + 20 overages at $8.50 = $170 overages.

Total: approximately $425/month

The real math at 100 calls/month: 30 included + 70 overages at $8.50 = $595 overages.

Total: approximately $850/month

Best for: Law firms and professional services needing lead qualification and intake. Per-call pricing benefits those with longer calls.

PATLive

PATLive offers competitive entry-level pricing on a per-minute model.

Base pricing: $199/month for 75 minutes included Higher tiers: Available up to several hundred minutes Overage rate: Per-minute charges apply

What's included: Live answering, message taking, call transfers, basic scheduling.

The real math at 50 calls/month: 125 minutes needed, 75 included. 50 overage minutes at estimated $1.50-$2.00/min = $75-$100 overages.

Total: approximately $275-$300/month

Best for: Entry-level live answering needs, price-sensitive businesses with moderate volume.

NextPhone (AI-Powered)

NextPhone uses AI to provide answering service capabilities at a flat monthly rate.

Base pricing: $199/month flat Overage rate: None. Unlimited calls included.

• No per-call or per-minute charges

What's included: AI receptionist, 24/7 coverage, appointment scheduling, message taking, call summaries, transfers.

The real math at 50 calls/month: $199/month. Cost per call: $3.98.

The real math at 100 calls/month: $199/month. Cost per call: $1.99.

The real math at 200 calls/month: $199/month. Cost per call: $1.00.

Best for: High volume businesses, anyone needing 24/7 coverage, budget predictability priority, businesses comfortable with AI-powered handling.

Provider Comparison Table

Hidden Fees That Can Double Your Bill

The base price is only part of the story. Here's what else might show up on your invoice.

Overage Charges

This is the biggest budget-buster. Once you exceed your included minutes or calls, overage rates kick in, and they're often significantly higher than your effective in-plan rate.

Example: Ruby's $319 plan includes 50 minutes, giving you an effective rate of $6.38/minute. But overages cost $5.19/minute. While that seems lower, you're paying on top of the base fee you've already paid. A typical 50-call month could easily generate $389 in overages, more than doubling your expected cost.

How to avoid: Track usage carefully. Many providers offer usage alerts. Better yet, choose flat-rate pricing.

Rounding Increments

The way providers round call duration has a surprisingly large impact.

15-second rounding: A 1:05 call bills as 1:15 (1.25 minutes) 30-second rounding: A 1:05 call bills as 1:30 (1.5 minutes) 60-second rounding: A 1:05 call bills as 2:00 (2 minutes)

Over 50 calls averaging 2 minutes each, the difference between 15-second and 60-second rounding could add 20-40 extra minutes to your bill monthly.

Setup and Onboarding Fees

Not universal, but common:

Setup fees: $0-$150 one-time Script development: $25-$100 Training fees: Sometimes charged separately for complex accounts Porting fees: If transferring your number

Ask upfront. Some providers waive these; others bury them in contracts.

Feature Add-Ons

What you assume is included often isn't:

Call recording: $10-$30/month (often required for quality review) CRM integration: $25-$50/month Appointment scheduling: Usually included, but sometimes premium Bilingual support: Often premium pricing or separate lines After-hours coverage: Not always included in base plans

Holiday and Time-Based Surcharges

Read the fine print on 24/7 coverage:

Holiday rates: Some providers charge 1.5x-2x on major holidays Weekend premiums: Not universal, but some apply higher weekend rates After-hours surcharges: "24/7" doesn't always mean "24/7 at base rate"

Contract and Cancellation Fees

Early termination: Can be several months' payment Auto-renewal clauses: Watch for automatic year extensions Month-to-month premium: Some charge 10-20% more for flexibility

The transparency test: Before signing, request:

1. Complete fee schedule in writing
2. Sample invoice from a similar business
3. Written confirmation of cancellation terms and notice requirements

If a provider won't provide these, that tells you something.

Per-Call vs Flat-Rate: Which Saves You Money?

This is the question most small businesses need to answer. Here's the math.

The Crossover Analysis

At lower volumes, per-call pricing can be cheaper. But there's a crossover point where flat-rate wins, and it's lower than most people expect.

At 25 calls/month:

• Per-call option (est.): $200-$400/month depending on provider
• Flat-rate (NextPhone): $199/month Verdict: Close. Flat-rate often still wins on predictability.

At 50 calls/month:

• Ruby (estimated): ~$708/month
• AnswerConnect (estimated): ~$400/month
• NextPhone: $199/month Verdict: Flat-rate saves $200-$500/month.

At 100 calls/month:

• Ruby (estimated): ~$1,357/month
• AnswerConnect (estimated): ~$875/month
• NextPhone: $199/month Verdict: Flat-rate saves $676-$1,158/month.

At 200 calls/month:

• Per-call options become extremely expensive
• NextPhone: $199/month Verdict: Flat-rate is the only sensible choice.

Annual Impact

Monthly differences compound significantly over a year:

When Per-Call Still Makes Sense

Per-call or per-minute pricing isn't always wrong:

Very low volume: Under 15-20 calls/month Very short calls: Under 1-minute average Premium requirement: Need for high-touch human interaction outweighs cost Temporary need: Short-term project or trial period

When Flat-Rate Is the Clear Choice

50+ calls/month: The math clearly favors flat-rate Variable volume: Seasonal businesses or unpredictable call patterns Budget certainty: Can't afford surprise bills 24/7 coverage: After-hours calls don't cost extra Growth mindset: More calls = lower cost-per-call, not higher bills

Live Agents vs AI Answering: The Cost Difference

The rise of AI-powered answering services has created a third option worth considering.

Live Agent Services (Ruby, AnswerConnect, Smith.ai)

Typical cost: $300-$1,000+ per month for adequate coverage

Strengths:

• Human judgment and empathy
• Complex problem-solving
• Relationship-building in high-touch industries
• Handles unusual situations gracefully

Limitations:

• Staffing constraints during peak times
• Potential hold times during busy periods
• Higher cost limits coverage hours for some businesses
• Agent quality varies

AI-Powered Services (NextPhone, others)

Typical cost: $99-$300/month flat

Strengths:

• Unlimited capacity (no hold times)
• Consistent 24/7 coverage at no premium
• Lower cost (often 60-80% less than equivalent live coverage)
• Instant response to every call
• No staffing limitations

Limitations:

• May struggle with very complex or unusual inquiries
• Some callers prefer human interaction
• Less suited for highly sensitive conversations

Cost Comparison for Equivalent 24/7 Coverage

The Hybrid Approach

Some businesses combine both:

• AI handles after-hours and routine calls
• Live agents handle complex consultations during business hours
• Best of both at moderate total cost

Which Is Right for You?

AI works well for:

• Appointment scheduling
• Basic inquiries and FAQs
• Message taking and call routing
• After-hours coverage
• High-volume call handling

Live agents excel at:

• Complex legal or medical intake
• Relationship-building industries
• Highly sensitive conversations
• Situations requiring judgment and empathy
• Callers who explicitly want human interaction

How to Calculate What You'll Actually Pay

Before signing any contract, calculate your expected total cost. Here's how.

Step 1: Determine Your Call Volume

Don't guess. Track your actual incoming calls for 2-4 weeks.

Note:

• Total call count
• Weekday vs weekend split
• Business hours vs after-hours split
• Peak days and times

If you're currently missing many calls (most businesses are), estimate what your volume would be if every call were answered.

Step 2: Estimate Average Call Duration

Call length significantly impacts per-minute pricing:

Simple message taking: 1-2 minutes Appointment scheduling: 2-4 minutes Detailed inquiries: 3-5+ minutes Complex consultations: 5-10+ minutes

Be realistic. Calls almost always run longer than expected.

Step 3: Calculate Under Each Model

Per-minute calculation:

(Monthly calls x Average minutes per call x Per-minute rate) + Base fee = Monthly cost

Example: 50 calls x 2.5 min x $1.50/min + $200 base = $387.50/month

Per-call calculation:

(Monthly calls x Per-call rate) + Base fee = Monthly cost

Example: 50 calls x $5/call + $150 base = $400/month

Flat-rate calculation:

Flat monthly fee = Monthly cost

Example: $199/month regardless of call count

Step 4: Add Hidden Fee Buffer

For per-minute and per-call plans:

• Add 15-20% for unexpected overages
• Add costs of any required add-ons (recording, integrations)
• Factor in setup costs for first-year calculations

Step 5: Compare Annual Totals

Monthly comparisons can be misleading. Calculate full annual cost:

(Monthly estimate x 12) + Setup fees + Add-ons = Year one total cost

Example comparison:

Your Calculation Worksheet

Fill in your numbers:

Is an Answering Service Worth the Cost?

The pricing discussion is incomplete without addressing value. Here's how to think about ROI.

The Missed Call Problem

Industry research paints a stark picture:

• 74.1% of business calls go unanswered (based on analysis of 13,175 calls to small businesses)
• 85% of callers who can't reach you won't call back
• Average contractor loses approximately $189,000 per year to missed calls

If those numbers seem high, consider: when was the last time you called a business, got voicemail, and tried again later? Most people simply call the next company on their list.

The Break-Even Calculation

At $199/month for answering service, how many captured calls justify the cost?

$199/month cost
$3,500 average job value (home services)
20% close rate on answered leads

Break-even = $199 / ($3,500 x 0.20) = $199 / $700 = 0.28 leads

You only need to capture ONE lead every 3.5 months to break even.

Everything beyond that is profit. If an answering service captures even one additional job per quarter that you would have otherwise missed, it's paying for itself multiple times over.

When Answering Service Is NOT Worth It

Be honest with yourself:

• You receive fewer than 10 calls per month
• All calls come during hours you can personally answer
• You're not currently missing calls
• Your leads come exclusively through other channels (email, online forms)

When Answering Service Clearly IS Worth It

• You're regularly missing calls (check your voicemail logs)
• Customers have complained about reaching voicemail
• You're on job sites during business hours
• After-hours inquiries are going unanswered
• Competitors answer faster and you're losing leads

Frequently Asked Questions

How much does a 24/7 answering service cost?

24/7 live answering typically runs $400-$1,000+ per month depending on call volume. AI-powered 24/7 answering is available for $199-$300 per month flat. The primary difference is human versus automated handling, but both provide around-the-clock coverage.

What's the cheapest answering service for small business?

Budget options start around $50-$100/month but typically include very limited calls (10-20 per month). For adequate coverage, expect $150-$300 per month minimum with traditional services. Flat-rate AI services like NextPhone offer unlimited calls at $199/month, which is often the most cost-effective option for businesses with more than minimal call volume.

Do answering services charge for hang-ups and wrong numbers?

With per-call pricing, yes. Every answered call typically counts regardless of outcome. With per-minute pricing, you pay for time spent even on wrong numbers (though these are usually short). With flat-rate pricing, hang-ups and wrong numbers don't affect your bill at all.

How do I avoid overage charges?

Three approaches: (1) Choose a plan with significantly more included minutes or calls than you expect to use, building in buffer room. (2) Monitor usage closely and upgrade before overages accumulate. (3) Choose flat-rate unlimited pricing and eliminate overage concerns entirely.

Is per-minute or per-call pricing better?

It depends on your call duration. Per-minute pricing favors very short calls (under 2 minutes average). Per-call pricing benefits longer calls (over 3 minutes average). At 50+ calls per month, flat-rate pricing typically beats both regardless of duration.

Can I negotiate answering service pricing?

Sometimes. Annual prepayment often unlocks 10-15% discount. Multi-year commitments may access better rates. However, watch for restrictive cancellation terms that offset savings. If you're considering a long commitment, ensure the service quality warrants it first.

How much does Ruby Receptionists cost?

Ruby starts at $319/month for 50 receptionist minutes, with overage charges of $5.19 per additional minute. For a typical small business receiving 50 calls per month averaging 2-3 minutes each, realistic monthly costs range from $600 to $1,500 depending on call volume and duration.

What's included in basic answering service pricing?

• Most base packages include: call answering, message taking, and basic call transfers.
• Features often requiring additional fees include: appointment scheduling integration, CRM syncing, call recording, bilingual support, and after-hours coverage (with some providers).

Making Your Decision

Answering service costs range widely, from $100/month for minimal coverage to $1,000+ for premium live service at scale. The advertised price is rarely what you'll actually pay once overages, add-ons, and hidden fees enter the picture.

Here's what matters:

Know your numbers. Track your call volume before shopping. Calculate what you'll actually pay under each pricing model, not just the base rate.

Understand the models. Per-minute works for low volume, short calls. Per-call works for longer calls at moderate volume. Flat-rate works for anyone who wants predictable bills and receives 50+ calls monthly.

Watch for hidden costs. Overage charges, rounding increments, setup fees, and feature add-ons can double your expected bill. Get everything in writing.

Consider AI options. AI-powered services like NextPhone offer 24/7 coverage at $199/month flat, often 60-80% less than equivalent live service coverage. For many businesses, the cost savings justify giving it a try.

Do the ROI math. At $199/month, capturing one additional job every few months covers the cost entirely. The real question isn't whether you can afford an answering service, but whether you can afford to keep missing calls.

Whatever you choose, prioritize transparency. Providers who won't give you straight answers about pricing probably won't give you straight answers when problems arise either.

Ready to stop guessing what you'll pay? NextPhone's flat $199/month includes unlimited calls, 24/7 coverage, and zero hidden fees. That's what transparent pricing looks like.