IPv4 Block Pricing: /24 vs /23 vs /22 — Cost Guide

Why block size matters: costs, routing, and operations

When acquiring IPv4 space, the choice between a /24, /23, or /22 influences the purchase price, routing flexibility, and operational overhead. A larger block reduces the per‑address price in many transactions and simplifies aggregation, but it also represents a larger capital commitment. This article breaks down pricing dynamics, gives practical cost examples, and outlines actionable advice for network teams and ISPs.

Understanding the block sizes

/24, /23, /22 — address counts and routing basics

• /24: 256 total addresses (commonly 254 usable hosts). Widely accepted as the de facto minimum routable prefix for IPv4 on the public Internet; many peers and filters will not accept prefixes longer than /24.
• /23: 512 total addresses (typically 510 usable). Often used as two aggregated /24s; useful when you need contiguous space and want fewer route entries.
• /22: 1,024 total addresses (typically 1,022 usable). Provides room to grow and a favorable per‑IP cost in many markets.

Market pricing: how prices are set

IPv4 prices are driven by supply-demand dynamics, RIR transfer policies, block history (clean vs. previously blacklisted), and region. Pricing is commonly quoted on a per‑IP basis and negotiated for entire blocks. Brokers and marketplaces also charge commissions and may provide escrow and verification services that add to the total cost but reduce transaction risk.

Recent market ranges (indicative)

In recent market cycles (2022–2024), typical per‑IP prices have generally ranged from approximately 0 to 0 per IP, with volatility based on region and block characteristics. Larger contiguous blocks often secure a discount—commonly 5–15%—compared with buying multiple smaller /24s.

Example cost calculations

Use these examples as rough illustrations. Always get current quotes when budgeting.

• Assume a mid‑market price of 0 per IP (example only):
• /24 (~254 usable): 254 × 0 = 2,700
• /23 (~510 usable): 510 × 0 = 5,500
• /22 (~1,022 usable): 1,022 × 0 = 1,100
• Apply a 10% bulk discount for /22 purchases: /22 cost ≈ 1,100 − 10% = 5,990.

Note: many deals are negotiated per block, not strictly per‑IP; sellers may price legacy, clean, or geographically desirable blocks differently.

Practical guidance: choosing the right block

Match block to real needs

Estimate current usage and growth for 12–36 months. Overbuying ties up capital; underbuying forces future purchases that may be more expensive or fragmented. If you need fewer than ~200 hosts, a /24 may be sufficient. If you anticipate >400 hosts or multiple aggregated networks, consider a /23 or /22.

Consider routing policy

Many providers and IXPs filter prefixes smaller than /24. If you plan to multihome or expect wide peer acceptance, a /24 is the minimum practical unit. Aggregating to /23 or /22 reduces global routing table entries and simplifies BGP management.

Aggregation and network design

Prefer contiguous blocks to avoid split aggregation. A single /22 can be subnetted into four /24s internally, which simplifies addressing and routing policies.

Buy vs lease: financial and operational tradeoffs

Buying gives permanent ownership but requires larger upfront capital and responsibility for RIR transfers, WHOIS updates, and possible legacy issues. Leasing reduces upfront cost, is faster to deploy in many cases, and can be aligned with project timelines—ideal for temporary capacity or trials.

• Leasing can run from months to multi‑year terms; pricing is seasonal and tied to block size.
• Buying is preferred for long‑term growth, resale options, or when you need full administrative control.

Transaction mechanics and timeline

Typical steps in a transfer:

• Initial due diligence and LOA (letter of authorization).
• Purchase agreement and escrow (recommended).
• RIR transfer process and administrative validation.
• Routing setup, WHOIS updates, and RPKI/ROA publication.

Timelines vary: simple leases can be completed in days; full purchases with RIR transfers usually take 2–8 weeks depending on RIR and documentation completeness. Factor in broker/escrow fees, internal legal review, and operational lead time.

Actionable checklist before buying or leasing

• Audit needs: Number of hosts, growth rate, and whether the block needs to be contiguous.
• Confirm routability: Ensure upstreams will accept /24 (or larger) announcements; plan ROAs and RPKI.
• Validate history: Ask for block clean history to reduce the risk of blacklisting.
• Budget total cost: Include purchase price, broker/market fees, registry transfer fees, and any legal/tax costs.
• Use escrow: Protect payment and transfer with a trusted escrow provider.

Where to buy or lease

Use reputable brokers and marketplaces that verify sellers and provide escrow. Platforms that verify seller ownership, provide clear transfer workflows, and surface competitive pricing make procurement safer and faster. For example, IP4 Market offers a trusted platform for IPv4 transactions with verified sellers, transparent pricing, and optional brokerage and escrow services to simplify transfers.

Conclusion

Choosing between a /24, /23, and /22 is a balance of immediate cost, future growth, and routing simplicity. Use per‑IP pricing as a baseline, factor in discounts for larger blocks, and always include transfer and brokerage costs in your budget. Conduct due diligence on block history, coordinate with your upstreams, and consider leasing if you need short‑term capacity. For secure, efficient transactions, work with a verified marketplace or broker to reduce risk and accelerate procurement.