Should I rent or buy a modem and router? That’s a question I never asked myself when the equipment charges were included in the monthly cost of my internet plan. However, when I switched to a better internet service, they billed me separately for their gateway (modem + router), which got me wondering…
It’s common to overlook monthly rental fees for a modem and router. We simply assume it’s a price we have to pay for an indispensable facility – is paying an extra $15 or something really that big of a deal? Probably not, if you’re thinking short-term; it could be if you speculate long-term outcomes.
Then again, cost-effectiveness isn’t the only reason people choose to buy their own equipment. Sometimes consumers aren’t satisfied with what they get from the provider, so they use their own modem and router for enhanced performance and customization.
Modem and Router Rental Fees by Internet Provider
Equipment rental fees vary by provider. Many internet providers charge for one device (modem or router) while the other is supposedly free. Some providers require customers to pay for the modem and router separately, and some include the cost of both in their internet plans.
Here’s a quick overview of equipment rental fees from some popular internet providers across the United States:
| Provider | Rental Fee (per month) | Yearly Cost | Free Option |
|---|---|---|---|
| Xfinity | $15 | $180 | Router is free; Modem is paid |
| Spectrum | $5 | $60 | Modem is free; Router is paid |
| Cox | $10.99 | $131.88 | Router is free; Modem is paid |
| AT&T | X | X | Router + Modem are included free of charge |
| Frontier | $10 | $120 | Router is free; Modem is paid |
| Mediacom | $22 | $264 | Not Available |
| Windstream | $9.99–$11.99 | Up to $143.88 | Router is free; Modem is paid |
Pros and Cons of Renting Your Modem and Router
👍 PROS:
- No upfront investment
- Free technical support and repairs
- Free replacement for broken/outdated equipment
- Automatic software updates
- No compatibility issues
- Ideal for short-term usage
👎 CONS:
- Monthly fees may increase and add up to a sizeable amount over time
- Equipment has to be returned following termination of service
- Lacks customization options/no control
- The router is accessible by the provider
- You may receive mediocre/outdated hardware
Pros and Cons of Buying Your Modem and Router
👍 PROS:
- Money-saving for long-term usage
- One-time investment
- Full control over your home network
- Plenty of options for personalization
- Better specs/tailored to specific requirements
👎 CONS:
- High upfront cost
- No tech support or free replacement from the provider
- Self-install and manual upgrades
- Incompatibility issues may arise
How Much Can You Save by Buying Your Equipment?
Buying your own equipment rather than renting from your provider can cut down monthly internet expenses, but is the initial investment worth it? The average lifespan of modems and routers is 5 years, so let’s do the math.
You can get your own modem and router (or combo device) for under $200, and the average rental fee for this equipment is $15 per month.
$15 x 12 months = $180 a year
180 x 3 = $540
180 x 5 = $900
To conclude, the cost of buying your own modem and router can be compensated by one year of rentals. Therefore, if you use the same modem and router for 3 years, you’re saving $360 ($540 - $180); this money could equip you with cutting-edge technology or higher speeds.
Moreover, you might end up paying about $900 for equipment alone over a period of 5 years (could be more, considering annual price hikes), which means you could save as much as $700 in the long run.
Best Scenarios for Buying vs. Renting Modem and Router
Buying internet equipment is recommended when:
- You’re a long-term internet user who plans to stay put for the next 5 years or so.
- You’re a power user with sufficient technical know-how.
- You need specialized equipment for high-bandwidth activities, such as multiplayer gaming/4K streaming.
- You want powerful technology to support a large number of users/devices in a big household.
- You prefer to have complete control over your home network along with several customization options.
Renting internet equipment is recommended when:
- A short-term lease is practical due to a temporary residence or employment situation.
- You’re a low-tech user; knowledge of modems and routers is limited
- You live in a small household with few users and connected devices
- You prefer low-maintenance devices (you don’t want to deal with or pay for upgrades, repairs, and replacements, etc.)
- You want a no-frills arrangement for low to moderate internet usage.
Best Modem & Router Combos in 2025
Modem and router combos are all the rage right now, given the convenience they have to offer. Often referred to as gateways, they take up less space, clear the cable clutter by half, and even consume less power as opposed to two separate devices.
You buy one device that fulfills the purpose of both, which might even save you more money. If the idea of replacing your old modem and router with a modern combo device sounds awesome, here are three great options for you to choose from:
1. Linksys AC1900 (Budget Pick)
Price: $75
Compatible with: Xfinity, Spectrum
- Recommended for internet plans up to 300 Mbps
- Wi-Fi 5 Dual-band
- Suitable for HD streaming and online gaming
- Wi-Fi range up to 2,000 square feet
- Supports 10+ devices
2. NETGEAR Orbi CBK752 (Mid-Range Pick)
Price: $299.99
Compatible with: Xfinity, Spectrum, Cox, WOW!
- Recommended for internet plans up to 1 Gbps
- Wi-Fi 6 Tri-band
- Suitable for HD video gaming, web conferencing, and seamless streaming
- Wi-Fi range up to 4,000 square feet
- Supports 40+ devices
3. NETGEAR Nighthawk CAX80 (High-End Pick)
Price: $449.99
Compatible with: All major cable internet providers, including Xfinity, Spectrum, Cox, Optimum, and Mediacom
- Recommended for internet plans up to 2 Gbps
- Wi-Fi 6 Tri-band
- Ideal for all kinds of bandwidth-heavy activities
- Wi-Fi range up to 3,000 square feet
- Supports 50+ devices
Streaming TV for Rural Areas
Who needs cable TV when you can watch all the best movies and TV shows at your convenience with streaming services? Netflix, Hulu, Disney+, Max, and Prime Video are among the most popular streaming services in the United States. The best part is that they’re affordable and you can subscribe to multiple services to expand your entertainment options.
Real-World Example: How Renting Cost One User $873
Towards the end, I’d like to mention a story I came across on CNET: One Xfinity customer looked at their internet bills of the past six years and realized that they had spent $873 solely on modem/router rentals.
The revelation made the user realize that they could spend that money on buying the best high-end router, upgrading their internet plan, and/or traveling instead. They confessed that using the provider’s equipment was satisfactory, though it doesn’t come close to owning your own gear.
What are your thoughts on this? Do you agree with this real-world example, or would you rather play it safe with rentals from your provider?
FAQs
Are modem-router combos better than buying them separately?
Even though a combo device offers convenience, buying your modem and router separately guarantees better performance.
Do modems and routers affect internet speed?
Yes, outdated modems and routers can cause slow internet. The modem and router you choose for your home network should match the capacity of your internet plan.
Can I use the internet without a modem or router?
You cannot connect to the internet without a modem, and you cannot use the internet on multiple devices via Wi-Fi without a router. Therefore, it’s best to get both devices or consider a modem-router combo.
