💰 WAN Link Comparison — Enter up to 3 links
Link 1 (Primary)
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Link 2 (Secondary / SD-WAN Primary)
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Link 3 (Backup / Optional — leave blank to skip)
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sites
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Total Monthly WAN Cost (per site)
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| Link | Type | Bandwidth | Monthly Cost | Cost / Mbps |
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Sources & Methodology
WAN link cost benchmarks from Gartner Magic Quadrant for WAN Edge Infrastructure (2025) and MEF (Metro Ethernet Forum) SD-WAN service definitions. April 2026.
Gartner — SD-WAN Market Research & WAN Edge Infrastructure
Primary source for SD-WAN market cost benchmarks, MPLS vs broadband cost comparisons, and typical ROI timelines for enterprise SD-WAN deployments referenced in this calculator.
MEF (Metro Ethernet Forum) — SD-WAN Service Standards
MEF 70.1 SD-WAN service standard defining link types, underlay classification (MPLS, internet, LTE), and service attributes used for link categorization in this calculator.
Cisco — SD-WAN Solution Overview and TCO Guidance
Cisco SD-WAN TCO calculator methodology and typical per-site cost structures for enterprise deployments, used as cross-reference for appliance and licensing cost ranges.
Methodology:
Cost per Mbps = Monthly Link Cost / Link Bandwidth (Mbps)
Total per site = Link1 + Link2 + Link3 (if applicable)
Annual TCO = Total per site x Sites x 12 months
Total effective bandwidth = sum of all link bandwidths (SD-WAN can aggregate). Effective cost per Mbps = total monthly cost / total bandwidth. MPLS savings = Link1 cost (MPLS) minus total SD-WAN replacement cost.
Last reviewed: April 2026
How Is SD-WAN Link Cost Calculated?
SD-WAN link cost analysis compares the monthly expense of different WAN transport types against the bandwidth they deliver. The key metric is cost per Mbps, which allows fair comparison between circuits of different speeds and prices. SD-WAN reduces overall WAN costs by replacing expensive MPLS circuits with cheaper broadband or fiber links while maintaining application performance through intelligent traffic steering.
Cost per Mbps = Monthly Cost ($) / Bandwidth (Mbps)
Example — MPLS replacement with dual-broadband SD-WAN:
Current: 1x 100 Mbps MPLS = $2,500/month • Cost/Mbps = $25.00
SD-WAN: 2x 100 Mbps broadband = $300/month + $150 appliance = $450/month
Effective bandwidth: 200 Mbps • Cost/Mbps = $2.25
Monthly savings: $2,050/site • Annual savings: $24,600/site
Current: 1x 100 Mbps MPLS = $2,500/month • Cost/Mbps = $25.00
SD-WAN: 2x 100 Mbps broadband = $300/month + $150 appliance = $450/month
Effective bandwidth: 200 Mbps • Cost/Mbps = $2.25
Monthly savings: $2,050/site • Annual savings: $24,600/site
WAN Link Type Cost Benchmarks (2026)
| Link Type | Typical $/Mbps/mo | Reliability | Best Use Case |
|---|---|---|---|
| MPLS | $15–$40 | 99.9%+ SLA | Critical apps, voice, legacy ERP |
| DIA / Fiber | $3–$15 | 99.5–99.9% | Primary SD-WAN link, cloud access |
| Broadband (cable/DSL) | $1–$5 | 98–99% | Secondary SD-WAN, bulk traffic |
| LTE / 5G | $5–$30 | 97–99% | Backup, remote sites, failover |
SD-WAN vs MPLS: Total Cost Comparison
MPLS was the enterprise WAN standard for two decades, offering guaranteed QoS and predictable latency. However, MPLS costs 10 to 30 times more per Mbps than broadband internet. SD-WAN enables organizations to replace some or all MPLS bandwidth with cheaper internet links while maintaining application performance through dynamic path selection, application-aware QoS, and real-time link quality monitoring.
Most enterprises achieve 40 to 60 percent WAN cost reduction after SD-WAN migration. Hybrid approaches that retain a reduced MPLS circuit for voice and critical applications while adding broadband for bulk traffic are common, achieving 30 to 50 percent savings while minimizing risk.
Hidden Costs in SD-WAN Deployments
- SD-WAN appliance hardware: $500 to $3,000 per site one-time cost
- Software licensing: $50 to $300 per site per month ongoing
- Professional services: design, deployment, testing — $5,000 to $25,000 typical
- MPLS contract termination: early termination fees if breaking long-term contracts
- ISP provisioning: new circuit installation charges for broadband or fiber
💡 SD-WAN ROI rule of thumb: Most organizations with 10 or more sites and significant MPLS spend achieve full payback within 6 to 18 months. The more sites and the higher the current MPLS spend, the faster the ROI. Single-site deployments may not justify SD-WAN overhead unless LTE backup or cloud optimization is the primary driver.
Frequently Asked Questions
SD-WAN using broadband typically costs 60 to 80 percent less than equivalent MPLS. A 100 Mbps MPLS circuit costs $1,500 to $3,000 per month. Dual broadband for SD-WAN costs $200 to $600 plus $150 to $300 for appliance licensing. Total SD-WAN cost: $350 to $900 versus $1,500 to $3,000 for MPLS. Savings increase with higher bandwidth requirements.
Cost per Mbps = monthly cost divided by bandwidth. MPLS: $15 to $40 per Mbps. DIA fiber: $3 to $15 per Mbps. Broadband: $1 to $5 per Mbps. LTE/5G backup: $5 to $30 per Mbps. SD-WAN aggregating two broadband links achieves effective cost of $1 to $8 per Mbps with redundancy, versus $15 to $40 for MPLS.
MPLS (private, guaranteed QoS, expensive), broadband internet (cheap, variable quality, suitable for most traffic), dedicated internet access or DIA fiber (higher reliability than broadband, mid-price), and LTE or 5G (highest cost per Mbps, used as backup). Most SD-WAN deployments combine two or more link types for cost optimization and redundancy.
SD-WAN ROI: Monthly savings = current MPLS cost minus SD-WAN total cost. Annual savings = monthly savings x 12. Payback months = implementation cost / monthly savings. Example: $50,000/month MPLS minus $15,000/month SD-WAN = $35,000 savings. $200,000 implementation cost / $35,000 = 5.7 month payback.
Dual-link SD-WAN uses two independent WAN connections for redundancy and bandwidth aggregation. If one link fails, SD-WAN routes all traffic over the surviving link. With two active links, SD-WAN load-balances traffic to increase effective bandwidth. Dual-link is the minimum recommended configuration for business-critical SD-WAN deployments.
SD-WAN appliance hardware: $500 to $3,000 per branch site, $5,000 to $20,000 for large sites. Software licensing: $50 to $300 per site per month. Cloud-managed subscriptions (Cato, Aryaka): $200 to $800 per site per month all-inclusive. Total per-site cost including hardware amortized over 3 years typically adds $100 to $400 per month to the WAN link costs.
MPLS provides end-to-end guaranteed QoS with committed information rates enforced at the carrier level — deterministic and contractual. SD-WAN provides application-aware QoS by dynamically steering traffic to the best-performing link based on real-time latency, jitter, and packet loss measurements. SD-WAN can match MPLS quality for voice and video by continuously monitoring link quality and steering sensitive traffic accordingly.
Yes. Hybrid SD-WAN combining MPLS and broadband is a common migration approach. Critical applications (VoIP, ERP) route over MPLS for guaranteed QoS. Bulk traffic (web, email, SaaS) routes over cheaper broadband. This reduces MPLS bandwidth requirements by 50 to 70 percent while maintaining quality for critical applications, capturing significant savings with lower risk than full MPLS replacement.
For a 20-site deployment: hardware $10,000 to $60,000, professional services $50,000 to $200,000, monthly licensing $1,000 to $6,000. Total first-year cost often $100,000 to $400,000 including implementation. Annual operational savings from MPLS replacement at 20 sites typically range from $500,000 to $2,000,000, achieving payback in 6 to 12 months.
Key evaluation criteria: integration with existing security stack, zero-touch provisioning for branches, application visibility granularity, multi-cloud connectivity (AWS, Azure, GCP), management portal usability, total cost of ownership, and vendor support quality. Leading vendors: Cisco SD-WAN, VMware VeloCloud, Fortinet Secure SD-WAN, Palo Alto Prisma, and Cato Networks. Gartner Magic Quadrant for WAN Edge Infrastructure is the authoritative analyst comparison.
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