How to Lower Your Phone Bill

The average American pays between $100–$160 per month for a single phone line.

Most people assume that’s just the cost of having a phone.

It’s not.

In reality, many people are overpaying by $30–$60 per month—and don’t even realize it.

This guide walks through exactly how to lower your phone bill, starting with quick wins you can apply today and ending with bigger changes that can cut your bill in half.

First, Audit Your Current Cell Phone Bill

Before making any changes, pull up your most recent bill.

Most people never actually review it—they just pay it. That’s where unnecessary costs hide.

Here’s what to look for:

1. Add-ons and features you don’t use

These often include:

• Device insurance
• Hotspot add-ons
• International calling or roaming
• Entertainment perks (streaming bundles, subscriptions, etc.)

Many carriers bundle in “perks” that sound valuable but quietly increase your monthly cost. If you’re not actively using them, they’re just adding to your bill.

2. Device installment payments

Financing a phone typically adds $20–$40 per month.

If your phone is already paid off—or could be kept longer—you can eliminate this entirely.

3. Data plan vs. actual usage

A common issue:

• Paying for unlimited data but using less than 5–8GB per month
• Paying for a high-tier plan when a lower one would cover your needs

You can check your usage directly in your phone settings. (We break this down step-by-step in our guide on how to check your data usage.)

4. Billing errors

These happen more often than expected:

• Promotions that didn’t apply
• Discounts that expired without notice
• Duplicate features

Reviewing your bill line by line can uncover immediate savings.

Quick Wins: Easy Ways to Lower Your Phone Bill Right Now

These changes require little to no effort and can reduce your next bill.

Turn on autopay and go paperless

Most carriers offer $5–$10 per line per month just for enabling autopay and paperless billing.

That adds up quickly:

• $5/month = $60/year per line
• A 4-line plan = $240/year

Use Wi-Fi whenever possible

Using Wi-Fi reduces mobile data usage, which can help you:

• Avoid overage charges
• Move to a cheaper data plan

Also consider turning off background data usage for apps like social media and streaming.

Trim or remove unused add-ons

Common unnecessary charges include:

• Device insurance ($15–$20/month)
• Extra hotspot data
• Entertainment subscriptions bundled through your carrier

If you’re not using them consistently, they’re easy wins to cut.

Call your carrier and ask for a better deal

This is one of the most overlooked strategies.

Try asking:

• “Are there any loyalty discounts on my account?”
• “I saw a similar plan for less—can you match it?”
• “What would it take to lower my bill by $20/month?”

If needed, ask to speak with the retention or loyalty department.

Real Example: How One User Cut Their Phone Bill by $100/Month

Here’s a real-world example of how small changes can lead to major savings.

Monthly phone bill (before):

• Unlimited plan: $85
• Device payment: $30
• Insurance: $17
• Taxes and fees: $13

Total: $145/month

What she changed

• Switched from a postpaid unlimited plan to a prepaid plan
• Dropped device insurance
• Kept her current phone instead of upgrading

New monthly bill

• Plan: $40
• Taxes and fees: ~$5

Total: $45/month

Results

• Monthly savings: $100
• Annual savings: $1,200

This is a common outcome when switching from a major carrier to a lower-cost alternative. If you want to explore similar options, see our guide to the best cheap phone plans.

Bigger Moves: Changes That Unlock Real Savings

These require slightly more effort but deliver the biggest impact.

Switch to a prepaid or MVNO plan

This is the most effective way to lower your phone bill.

Major carriers charge a premium. MVNOs (mobile virtual network operators) use the same networks at a lower cost.

Typical pricing:

• $20–$30/month for basic plans
• $40–$60/month for unlimited

Coverage depends on your location, so it’s important to check before switching. You can use Goji’s coverage map to compare networks in your area.

Right-size your data plan

Many people stay on unlimited plans out of habit.

But if you’re using less than 5–8GB per month, you can likely switch to a cheaper plan without any downside.

Consider a family or group plan

Multi-line plans can reduce per-line costs by 40–50%.

This can include:

• Family members
• Roommates
• Friends

Just make sure billing expectations are clear.

Skip the upgrade cycle

Upgrading your phone every year adds significant cost.

Instead:

• Keep your phone longer
• Buy unlocked devices
• Consider certified refurbished phones

This removes the monthly device payment entirely.

Understand how taxes and fees affect your bill

Taxes and fees typically make up 25–28% of a wireless bill.

Lowering your base plan cost also lowers the total amount paid in fees.

Think twice before bundling

Bundles can be helpful—but only if you already use the services included.

Otherwise, they often increase your total monthly cost and reduce flexibility.

Don’t Overlook These Hidden Discounts

You may qualify for:

• Employer or corporate discounts
• Military or first responder pricing
• Student discounts
• Lifeline program (up to $9.25/month for qualifying households)

It’s worth checking with your carrier directly.

When It’s Time to Switch Carriers

If your bill is still high after optimizing your plan, switching carriers is often the best option.

Before switching, check:

• Coverage in your area
• Phone compatibility
• Features like hotspot or Wi-Fi calling

Most unlocked phones work across networks, and you can keep your number.

Frequently Asked Questions

What is the average cell phone bill per month?

Most Americans pay between $100–$160 per month for a single line.

Can I get the same coverage with a cheaper carrier?

Yes. Many prepaid and MVNO carriers use the same underlying networks as major providers.

Is it worth switching from a postpaid to a prepaid plan?

For many users, yes. Prepaid plans often offer similar service at a significantly lower price.

Does switching carriers affect my phone number?

No. You can keep your number when switching carriers.

What is a BYOD plan?

BYOD stands for “Bring Your Own Device.” It allows you to use your current phone and avoid additional monthly device payments.