How Much Does an Office Phone System Cost?

Phone Systems Technology What does it cost?

How much to budget for a Panasonic black desktop phone

There are plenty of reasons why you may want to replace your office’s phone system; perhaps it’s outdated and missing essential features, you realized you are paying far too much for your monthly lines, or your devices are worn out. 

Whatever your reason, before you can get down to picking a provider and solution, you deserve to know how much this is all going to cost you.

Now, I’ll be honest; I won’t be giving you one fixed price in this article.  What I will do, however, is give you an overview of how much a “typical” office phone system should cost and then break down the critical factors that will influence how much you can expect to pay.

How Much Does an Office Phone System Cost?

One of the primary factors impacting how much a new phone system will cost is just how many phones you are going to need.  A business with four employees is going to require far fewer phones than a company with 100 employees.

For this article, we are going to base our numbers off a “typical” small business with ten employees working out of one office.  This example office is going to purchase ten desk phones, have half a dozen phone lines and host their system within their space with a PBX (Public Branch Exchange).  They should plan to budget between $5000 and $6000 for this phone system.

What Goes Into the Cost of a Phone System?

There are a variety of factors that will determine your final price.  Office phone systems are inherently highly customizable and complex, but here are the three elements you must consider before selecting the budget for your next office phone system.


As we mentioned above, the factor to most drastically impact the cost of your phone system will be the phones themselves.  How many phones do you need?  Are they standard desktop phones, cordless, hybrid or wireless phones? 

If you want to buy standard desktop phones, you could expect to pay approximately $300 per phone.  But as your hardware becomes more advanced, so too will your price.  For example, a wireless telephone might cost as much as double a desktop phone with the same feature set.

In addition to the phones, many office phone systems rely on a PBX to host their VOIP network.  These PBXs can cost $2000 to $3000 depending on how it is configured and the complexities of installation.

Number of Lines

A traditional phone system requires one phone line per phone number.  So, our example office with ten employees would have needed to subscribe to ten phone lines if they wanted each employee to have a unique phone number. 

These phone lines are purchased from a local telecommunications provider (ex. Bell or Rogers) and can be purchased independently of your hardware.

Alternatively, when purchasing a new office system, you have the option to move to a more advanced system that runs on SIP (Session Initiation Protocol) lines rather than traditional phone lines. 

One of the vital cost-saving features of SIP lines is that they are a shared resource, meaning that each user can have their own unique phone number without requiring a unique phone line.  Many businesses will reduce their monthly phone bill by as much as 30 percent after making this switch.


Unlike most other technology where you start with a base piece of equipment and add on whatever features you want or need, office phones typically come loaded with a suite of excellent features.  It is then your option to pare back features that you don’t see yourself using or select a phone model with reduced features. 

Some of these popular features include:

  • Unified messaging
  • Voicemail-to-email
  • Caller queues
  • Extension dialling and company directories
  • One-button transfer

A New Phone System Could Save You Money

Just how would buying a new phone system save you money?  Simple.  Your telecommunication provider’s goal is to sell you as many traditional phone lines as possible.  The purpose of an office equipment provider is to sell you the solution that will create the most value for your organization.

Before selling a phone system to a customer, we evaluate their phone bill for potential cost savings and opportunities for line consolidation.  Then we find the system that will best make that happen, while still providing you with the features and communication technology to keep your business running smoothly.

To schedule your free phone assessment, contact us today!

Cory Porteous
Director of Marketing & Inbound Business Development
Office Interiors

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