Technology Explained

How Does a Router Work? A Simple Explanation

Megan Ellis Updated 12-12-2019

Routers are an important piece of technology that most of us have in our homes, but many of us don’t really understand them. In fact, most people don’t even realize what a router technically is and how it’s different from a modem.


Luckily, we are here to demystify the basic functions of a router so that you can get a better understanding of your network devices.

What Does a Router Do?

To put it simply, a router connects devices within a network by forwarding data packets between them. This data can be sent between devices, or from devices to the internet. The router does this by assigning a local IP address to each of the devices on the network. This ensures that the data packets end up in the right place, rather than getting lost within the network.

Imagine this data as a courier package—it needs a delivery address so that it ends up at the right recipient. Your local computer network is like a suburban road—just knowing this location within the world at large (i.e. the World Wide Web) isn’t enough.

The package could easily end up at the wrong house with limited information. Thus, the router makes sure that each location (device) has a unique number so that the package goes the right address.

If you need to return the data to the sender, or send out your own package, your router does this job too. While it handles each packet individually, it does this so quickly that it feels instantaneous—even when multiple devices send out data at once.


How Is a Router Different Than a Modem?

Since modern modems often come equipped with a built-in router, the distinction between modems and routers Modem vs. Router: The Differences and Why You Need Both When you're connecting your PC to the internet, what do you need: a Wi-Fi router, cable modem, or both? Here's what you need to know. Read More is often blurred. But those who remember the early days of the internet know that they have distinct functions.

You need your modem to connect to the internet via your ISP, while you need a router to connect multiple devices in a network—including your modem. Therefore, the router allows your modem and multiple devices to transfer data from one location to another. The modem is the conduit that sends data to and from the internet.


You need a modem due to the different types of signals used by computers compared to the internet at large. Computers and mobile devices use a digital signal, while the internet works on an analog signal.


The modem converts these signals to the correct format. This is where the device gets its name from: a modem is a modulator and demodulator. You will often receive a modem from your ISP 7 Reasons Why You Should Replace Your ISP’s Router Your ISP sent you a router when you signed up and it works fine. But is it giving you the best speeds possible? Read More when signing up for an internet package; we’ve looked at the best replacement modems/routers if you have Comcast The 5 Best Routers and Modems for Comcast Xfinity If you're a Comcast Xfinity subscriber, here are the best routers and modems for Comcast Xfinity internet plans. Read More .

This signal conversion is the dedicated function of the modem. Actually coordinating these signals is the router’s job.

What Is a Router Used For? When Do You Need One?

Once upon a time, in a single-PC household, you only needed a modem to connect to the internet. Technically, if you only want to connect one device, you can still use only a modem. Though for security reasons and future flexibility, it’s best to use a router even with only one device Why You Should Use a Router Even With Only One PC Every household with internet access should be using a router, even if there's only one PC connected to the network. Here are a few compelling reasons why. Read More on your network.

But now that homes usually have more than one device, a router is essential. Think back to the example of a road name versus your house’s number. If there was only one home on the road, you wouldn’t need the house number since it’s the only location. But when there are multiple houses on a road, you need a local address.


You need a router not only when you want to connect multiple devices to the internet, but also if you want to connect multiple devices to each other. Without the internet, you can still create a local network of computers and other devices. This enables you to transfer and share files with specific devices within a network, including printers, scanners, and game consoles.

Local devices on home network

Without the router, the data wouldn’t end up at the right device. A command to print a document is useless if it ends up on your smartphone or a Google Home speaker—it needs to go to your printer.

Speaking of Google Home, routers are even more essential when it comes to connecting your smart home. Since a smart home is also a local network of devices, without a router they can’t talk to each other. Depending on the device, you might still need an internet connection if services are cloud-hosted. But ultimately, the router coordinates these data packages.


A local network can exist without the internet or a modem, but it cannot exist without a router.

Differences Between a Wired and Wireless Router

The difference between a wireless and wired router is what type of connections each device allows. A wired router only has LAN cable ports, while a wireless router (also known as a Wi-Fi router The 7 Best Wi-Fi Routers for Long Range and Reliability Experiencing Wi-Fi network issues at home? You might need a new router. Here are the best Wi-Fi routers for long range at home. Read More ) includes antennae and a wireless adapter that allows devices to connect without a cable.

Most routers and modems nowadays include both LAN ports and antennae. There are a few points you should keep in mind before you select which Wi-Fi router to buy 4 Things to Know Before Buying a Wi-Fi Router for Your Home Wondering how to get Wi-Fi at home, what a Wi-Fi router is, or what kind of router you need? This introduction will answer your questions and more. Read More to make sure that you select the right one for your situation.

Finding Out More About Your Internet Devices

Now you know what a router does and the role it plays in connecting your devices to the internet. If you’re still looking for more information to sort through the jargon, we have a more guides to check out.

For example, what is the difference between a router, a hub, and a switch What's the Difference Between Routers, Hubs, and Switches? Are you confused about the differences between a hub, a switch, and a router? Don't worry. The answer is actually quite simple. In this article, we break it down for you. Read More ? Turns out you don’t need to spend cash on each device to connect your home network to the web. We’ve also looked at the best travel routers The Best Travel Routers for Your Next Vacation A travel router is a great way to bring portable Wi-Fi on your next trip. Here are some of the best travel routers to consider. Read More for when you’re on the go.

Related topics: Computer Networks, Router.

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  1. Tripti
    January 17, 2020 at 4:29 am

    What is a Router and what does it do has ben rightly explained in a simple way.
    Thanks for explaining it so nicely with an example.

  2. Rodney Owen
    August 23, 2018 at 11:29 pm

    A good article about how devices are connected in a network. However a switch connects computers and printers and allows data to be exchanged. A router connects two networks and is required for us to access computers outside our own network. It is true that in the modern home network modems, routers and switches have been combined in one device but each is distinct in its function.

    • Netgear Router Support
      September 25, 2018 at 8:15 pm

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    • Netgear Router Support
      September 25, 2018 at 8:17 pm

      thanks for comment section, we provide Netgear technical support contact us, +18006082336 or +18444436300

    • Netgear Router Support
      September 25, 2018 at 8:17 pm


    • Megan Ellis
      September 26, 2018 at 8:14 am

      You're completely right :) Switches and routers are distinct pieces of hardware but come combined in a single device nowadays, and routers can often be used as switches. Didn't want to get too deep into the distinction since we have an article covering switches vs hubs, etc already :)