Comparing a phone purchase with a carrier payment plan can be tricky when the upfront price and monthly bills are different. The Cell Phone Plan Calculator helps you compare the total cost of buying a phone outright with paying for it through a carrier over a set period. Enter your phone price, monthly bills, contract length, and interest rate to see which option costs less.
Cell Phone Plan Calculator
Phone Plan Comparison
Buying outright: Phone price + (monthly bill × contract duration)
Carrier plan: Monthly bill × contract duration − interest from investing
The investment interest estimates the interest that could be earned by keeping the money that would have been spent on the phone invested during the contract period.
How the Cell Phone Plan Calculator Works
This calculator compares two ways of paying for a phone: buying it outright or using a carrier phone-buying plan.
For the outright option, it adds the phone price to the monthly bill paid over the selected contract period.
For the carrier option, the calculator considers the monthly carrier bill and the interest that could be earned by keeping the phone money invested instead of spending it upfront. This gives you a better idea of the overall cost of each option.
Example
Suppose a phone costs $800, your regular monthly bill is $20, and the carrier plan costs $50 per month for 24 months.
- Phone price: $800
- Contract length: 24 months
- Outright monthly bill: $20
- Carrier monthly bill: $50
- Annual investment interest: 4%
The calculator compares the total cost of both options and shows which one is cheaper, along with the potential savings.
Buying a Phone Outright vs. Carrier Plan
Buying a phone outright means paying the phone’s full price at the beginning, while a carrier plan spreads the cost over several months.
A carrier plan may look cheaper because there is no large upfront payment, but the monthly payment and the opportunity to earn interest on your money can change the comparison.
The best option depends on the phone price, monthly bills, contract length, and interest rate.
How to Use the Calculator
- Enter the contract length.
- Select the currency you want to use.
- Enter the phone price.
- Enter your monthly bill for buying the phone outright.
- Enter the carrier monthly bill.
- Enter the annual interest rate.
- Click Calculate to compare the two options.
Important Note
This calculator is intended for comparison purposes. Actual carrier plans may include taxes, activation fees, trade-in credits, discounts, insurance, or other charges that can change the final cost.