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RingCentral advertises its business phone system starting at $20 per user, per month, billed annually (or $30 with month-to-month plans).
Sure, that number is reasonable. Or is it?
Not when you add taxes, regulatory surcharges, and the AI and call management features.
For small businesses watching every dollar, the gap between the advertised price and the actual RingCentral cost can eat into your budget.
RingCentral is a solid platform, no question. It's built for large organizations with complex needs and the budgets to match.
But if you run a small practice, a growing startup, or a lean operation in a regulated industry, you might find yourself paying for a lot you don't use. And extra for the things you do.
This article takes a closer look at the RingCentral plans and pricing, and where hidden charges appear.
It also introduces iPlum, a powerful, feature-rich RingCentral alternative built for team management, security, and scale.
For starters, iPlum is an affordable HIPAA-compliant business phone with transparent pricing and no surprise fees. More on that later.
But first.
Table of Contents
1. How is RingCentral per user pricing structured?
2. What do you get at each RingCentral tier?
3. Taxes and surcharges: the bill you didn't expect
4. How much does RingCentral cost a small business annually?
5. iPlum: the best RingCentral alternative for small businesses
6.How does iPlum compare with RingCentral on price?
8. RingCentral pricing vs iPlum: a side-by-side comparison
How is RingCentral per user pricing structured?
RingCentral offers three RingCentral business phone plans under its RingEX product: Core, Advanced, and Ultra.
The Core plan starts at $20 per user, per month, billed annually. With monthly billing, the cost increases to $30. The Advanced plan costs $25 annually or $35 month-to-month. Meanwhile, the Ultra plan costs $35 annually or $45 with monthly billing.
That said, here's what RingCentral doesn't tell you upfront.
Pricing also changed based on the number of users you have. The 1–5 user band has the highest per-user rate. So small businesses — the ones with the tightest budgets — pay the most.
RingCentral also structures its plans so that essential business communication features are available in higher tiers. Want CRM integrations? That's the Advanced plan. Need unlimited storage? That's Ultra. Call recording? Also gated by tier.
And if you need the AI Receptionist, Business SMS Booster, or Call Queues Booster, none of those come with any plan. They're paid add-ons on top of your base subscription.
So the pricing structure isn't as flat as it first looks. The base price is just the starting point.
What do you get at each RingCentral tier?
RingCentral breaks its RingEX offering into three tiers. Here's what each one actually covers.
Core plan — $20 per month (annual) or $30per month (monthly billing)
The Core plan is the entry-level option.
It comes with unlimited domestic calling, team messaging, video meetings with up to 200 participants, and 25 business SMS per user per month. You also get 100 toll-free minutes and on-demand call recording.
Note that "on-demand" means someone has to trigger the recording manually. Automatic call recording isn't available at this tier.
Also, the AI Receptionist is an add-on here, not a built-in feature.
Advanced plan — $25 per month (annual) or $35 per month (monthly billing)
The Advanced plan adds CRM integrations, multi-site management, and core reporting. SMS increases to 100 messages per user, per month. Toll-free minutes also increase to 1,000.
RingCentral also includes an AI writer and more AI features at this tier. However, AI Receptionist remains a paid add-on.
CRM integrations at this level open up connections to tools like Microsoft Teams and Google Workspace, which are useful for businesses already running on those platforms.
Ultra plan — $35 per month (annual) or $45 per month (monthly billing)
RingCentral's Ultra plan is the most expensive tier.
It includes unlimited storage, RingCentral video webinars, device analytics, and real-time insights. SMS allowance rises to 200 messages per user, per month, while toll-free minutes increase to 10,000.
It is worth noting that RingCentral doesn't include desk phones or desktop phones in any plan. You have to buy the hardware separately.
In addition, the AI Receptionist is available only as an add-on across all tiers. So does the Business SMS Booster, Call Queues Booster, and AI Conversation Expert.
Speaking of add-ons, here's what they cost:
Here's what those add-ons actually cost:
- AI Receptionist — starts at $39 per month
- Business SMS Booster — $25 per month
- Call Queues Booster — $35 per month
- AI Conversation Expert — starts at $60 per month
Taxes and surcharges: the bill you didn't expect
The advertised RingCentral pricing is just the base. What hits your bank account every month is a different number entirely.
RingCentral adds taxes and surcharges to every plan. These fees aren't fixed. They fluctuate based on your location and the number of users on your account.
On average, expect them to add 20% to 30% to your base monthly bill.
Take the Advanced plan at $35 per month with one line in California, for instance. Here's how much it’ll cost you:
As you can see, that's a 35% increase over the base price. And that's just one user.
The administrative cost recovery fee alone adds $4 every month. RingCentral charges this fee to cover its own internal regulatory costs.
The tax and surcharges vary depending on where your business phone is registered. Here's how the same Advanced plan plays out across different states:
In a high-tax state like Illinois, a single user on the Advanced plan pays nearly $52 a month or $624 a year.
How much does RingCentral cost a small business annually?
Let's do the math for a small business with five users on the Advanced plan, billed monthly.
The advertised price is $35 per user, per month. That's $175/month for five users, or $2,100 a year. Sounds manageable.
But add taxes and surcharges — conservatively 25% — and that monthly bill increases to roughly $219. Over 12 months, that's $2,625 a year.
Now say your business needs the AI Receptionist ($39/month) and the Business SMS Booster ($25/month). Those two add-ons alone add up to an extra $64 every month.
So, the actual annual cost for five users is about $3,393. That's $1,293 more than the advertised price suggested.
And that's before factoring in desk phones, desktop phones, or any additional call management features your operation may need.
iPlum: the best RingCentral alternative for small businesses
Didn't expect the many hidden costs with RingCentral? No worries. Introducing iPlum
iPlum is a HIPAA-compliant business phone platform built for small businesses, independent professionals, and regulated industries. We're talking about medical practices, law firms, financial advisors, and growing startups.
In short, iPlum seeks to provide secure communications for your workforce and business.
It gives you a second business phone number on your personal device, allowing you to keep your personal and professional calls separate.
But unlike RingCentral, iPlum lets you run a professional phone system without buying new hardware or signing enterprise contracts.
iPlum runs entirely through a mobile app on iOS and Android. It also offers web calling and texting, so your team can make and receive phone calls from anywhere. You don't need desk phones or a complicated setup.
The best part is, unlike RingCentral, iPlum doesn't charge extra for the features small businesses need most. It doesn't lock HIPAA compliance, encrypted texting, and a Business Associate Agreement behind its most expensive tier.
More on the iPlum pricing in a moment.
How does iPlum compare with RingCentral on price?
iPlum offers three plans. And all three cost less than RingCentral's entry-level Core plan, billed monthly at $30 per user.
iPlum Standard — $8.99 per user, per month
The Standard plan covers the essentials a small business needs to run a professional phone system. You get a US or Canada phone number, unlimited calling, business SMS, a phone tree, voicemail, business hours, auto-text reply, and spam blocking.
That's a fully functional business phone for under $9 a month. RingCentral charges $30 per user for a comparable entry-level experience on a monthly billing.
iPlum Professional — $14.99 per user, per month
The Professional plan is where iPlum separates itself from RingCentral.
At $14.99, you get everything in Standard plus HIPAA compliance, a Business Associate Agreement (BAA), secure encrypted texting, voicemail transcription, group text, broadcast text, scheduled texts, text templates, text archiving, and web calling and texting.
With RingCentral, HIPAA compliance isn't an add-on you can access for $25 per user. It requires additional configuration, and the Business Associate Agreement isn't as straightforward to obtain.
iPlum bundles it all for $14.99.
iPlum Enterprise — $25.99 per user, per month
The Enterprise plan adds call recording, recording consent announcements, and 10 years of archiving for recordings and texts. It's built for regulated industries — healthcare, legal, and finance — where compliance and documentation are mandatory.
At $25.99 per user, it's still cheaper than RingCentral's Advanced plan, billed annually at $25, and significantly cheaper than the $35 monthly billing rate.
And unlike RingCentral, iPlum absorbs taxes and surcharges internally. The price on the page is what you pay.
Where iPlum pulls ahead
Besides being more affordable than RingCentral, iPlum also wins on essential features for small businesses and regulated industries.
Here's a quick walkthrough:
HIPAA compliance at $14.99
While RingCentral can be HIPAA-compliant, it requires several configurations and the deactivation of some features.
iPlum, by comparison, builds it into the Professional plan at $14.99 per user. With iPlum, any healthcare provider, therapist, or medical practice gets full compliance without paying enterprise rates.
BAA included
A Business Associate Agreement is required by law for healthcare providers that handle patient data. And, iPlum includes it at the Professional tier. With RingCentral, obtaining a BAA involves additional steps and isn't guaranteed at every plan level.
Encrypted texting
iPlum encrypts text messages at the Professional tier. RingCentral's business SMS doesn't offer the same level of encryption as standard.
No add-on fees
RingCentral charges separately for the AI Receptionist, Business SMS Booster, and Call Queues Booster. While these features sound impressive, they're expensive add-ons that most small businesses don't necessarily need.
With iPlum, you get core compliance and communication features without paying for expensive add-ons.
Transparent billing
iPlum absorbs taxes and surcharges internally. The price you see is the price you pay — every month, without variation.
For small businesses in healthcare, legal, or finance, those differences add up to significant savings and peace of mind.
Also read: iPlum vs RingCentral—Which is the Better for Business Calling and Texting?
RingCentral pricing vs iPlum: a side-by-side comparison
Here's a direct look at how RingCentral's Advanced plan stacks up against iPlum's Professional plan.
Notice how RingCentral's price increases with a 5-user annual cost comparison.
As you can see, iPlum's Professional plan costs $10 less per user, per month than RingCentral's Advanced plan billed annually. And $20 less on monthly billing.
When you add taxes, surcharges, and the cost of essential RingCentral add-ons, the gap widens considerably.
A small business with five users could save well over $1,900 a year by choosing iPlum over RingCentral.
Who is iPlum for?
iPlum may not be designed for a large organization like RingCentral. However, for certain operations, it's a significantly better fit than RingCentral.
If you run a medical practice, a therapy office, or any healthcare operation that handles patient communication, iPlum provides HIPAA compliance and a Business Associate Agreement for $14.99 per user.
Meanwhile, solo professionals and independent consultants get a second business phone number on their personal device for under $9 a month.
In addition, law firms, financial advisors, and insurance agents in regulated industries get call recording, 10 years of archiving, and encrypted business SMS at $25.99 per user.
That's cheaper than RingCentral's Advanced plan billed annually, and far more affordable with monthly billing.
The bottom line
Sure, RingCentral is a solid business phone system. However, solid doesn't always mean the right fit.
The advertised RingCentral pricing doesn't reflect what you pay. When you include monthly billing rates, taxes, surcharges, and the cost of essential add-ons, the actual RingCentral cost can run 35% to 50% above the sticker price.
iPlum charges what it advertises.
HIPAA compliance, encrypted texting, and a Business Associate Agreement come standard with add-ons required.
For small businesses, healthcare practices, and regulated industries, iPlum offers a leaner, more transparent solution to professional business communication.
Click the link below to get started with iPlum.
