DHCP Configuration Parameters and Settings Explained
Configuring a DHCP server requires specifying several parameters and settings. This tutorial outlines the essential parameters and configuration steps for setting up a DHCP server on Cisco switches and routers.
To configure a Cisco router or switch as a DHCP server, you must create and configure a DHCP pool. A DHCP pool is a set of IP configurations assigned to DHCP clients. Each configuration includes a unique IP address, network settings, the default gateway IP address, DNS server IP addresses, and TFTP server IP addresses. The following sections provide a detailed explanation of these settings and addresses.
IP range (subnet or scope)
This range consists of IP addresses assigned to clients. Within each range, the first address is the network ID, and the last address is the local broadcast ID. DHCP clients use the network address and the broadcast address to request IP configuration information from DHCP servers. DHCP servers, in turn, use these addresses to offer IP configurations to clients.
To define an IP address range, specify the network ID and subnet mask. For example, to define a range from 192.168.1.0 to 192.168.1.255, set the network ID to 192.168.1.0 and the subnet mask to 255.255.255.0. The network ID 192.168.1.0 and the subnet mask 255.255.255.0 represent a range of IP addresses from 192.168.1.0 to 192.168.1.255. In this range, the network address is 192.168.1.0, and the local broadcast address is 192.168.1.255. A DHCP server does not lease the network ID or broadcast ID. All other addresses within the defined IP range are available for client assignment.
Reserved/excluded addresses
If you do not want to assign particular IP addresses dynamically, configure them as excluded addresses. DHCP servers will not assign addresses from the excluded range. This feature enables configuring static IP addresses for critical network resources, such as servers, printers, and routers.
The default gateway IP address
When a local host needs to send data to a device outside the local network, it forwards the packet to the default gateway. This option specifies the default gateway IP address for hosts, which is typically the IP address of the router interface directly connected to the local network.
DNS server IP addresses
DNS servers enable hosts to access network resources by name rather than IP address. If a DNS server is available, specify its IP address using this option. Multiple DNS server addresses can be configured for hosts as needed.
TFTP server IP address
A TFTP server enables hosts to download or store files. If a TFTP server is present in the network, use this option to provide its IP address to all hosts.
Lease duration
The lease duration specifies how long an IP configuration remains valid. A DHCP client may use the assigned configuration until the lease expires, after which it must obtain a new configuration from the server. By default, the lease duration is 24 hours, but this value can be adjusted as required. The following image shows how multiple IP configurations are stored in a DHCP pool.

DHCP pool configuration mode
Cisco routers and switches provide a dedicated configuration mode called DHCP pool configuration mode. This mode is used to create and configure DHCP pools. Except for the command to define excluded or reserved addresses, all commands necessary for DHCP server configuration are executed in DHCP pool configuration mode.
DHCP configuration steps
To configure a DHCP server on a Cisco router or switch, follow these steps.
- Create a list of addresses to exclude or reserve. Use the command 'ip dhcp excluded-address [first-address last-address]' in global configuration mode.
- Create a DHCP pool with a unique name. To create the pool and enter DHCP pool configuration mode, use the command 'ip dhcp pool [name]' in global configuration mode.
- Define the range of IP addresses for client assignment. Use the 'network [subnet-ID mask]' or 'network [subnet-ID prefix-length]' command in DHCP pool configuration mode to specify the range.
- Specify the default gateway IP address. Use the 'default-router [ip-address]' command in DHCP pool configuration mode to set the default gateway.
- Specify the DNS server addresses. Use the 'dns-server [address1 address2...]' command in DHCP pool configuration mode to define the DNS server IP addresses for clients in this pool.
- To modify the default lease duration of 24 hours, use the 'lease [days hours minutes]' command in DHCP pool configuration mode to set the desired lease period.
- If you have a TFTP server in the network, specify its IP address using the 'next-server [ip-address]' command in DHCP pool configuration mode.
This tutorial is part of the tutorial series "DHCP (Dynamic Host Configuration Protocol) basic concepts, configurations, functions, and options explained". Other parts of this series are the following.
Chapter 1 What DHCP is and Types of DHCP Explained
Chapter 2 How DHCP works explained with examples
Chapter 3 DHCP Configuration Parameters and Settings Explained
Chapter 4 How to Configure DHCP Server on Cisco Switches
Chapter 5 Configure DHCP Server for multiple VLANs on the Switch
Chapter 6 How to Configure DHCP Server on Cisco Routers
Chapter 7 How DHCP Relay Agents work Explained
Chapter 8 How to Configure DHCP Relay Agent on Cisco Routers
Chapter 9 How DHCP Snooping works Explained
Chapter 10 Configure DHCP Snooping on Cisco Switches
Summary
This document offered a step-by-step guide for configuring a DHCP server on Cisco switches and routers. It covered essential parameters, including defining a DHCP pool, specifying the IP address range, setting the default gateway, configuring DNS and TFTP server addresses, and configuring the lease duration. It explained how to exclude specific IP addresses for static assignment, described the purpose of each DHCP parameter, and outlined the sequence of commands needed to create and configure a DHCP pool.
Author Laxmi Goswami Updated on 2026-02-09