Scenario calculator
Phone plan subscription vs prepaid device
Compare a monthly phone plan to buying a phone outright and using prepaid service over your usage period.
Scenario introduction
Phone carriers bundle devices into monthly plans, while prepaid options require buying the phone upfront. The choice depends on how long you keep the device and plan.
Use this calculator to find the break-even month where the prepaid option becomes more economical.
Use the calculator below to test your own pricing and timeline for phone plan subscription vs prepaid device. The recommendation will shift as the time horizon changes, which is why this page emphasizes break-even logic over simple price tags.
Calculator
These defaults reflect a typical phone plan subscription vs prepaid devicedecision, but you should replace them with your actual numbers. The totals update instantly as you adjust the inputs.
Scenario-specific explanation
Carrier plans reduce upfront cost and may include perks, which can be attractive if you upgrade frequently.
Buying the phone outright pays off once monthly plan premiums exceed the one-time device cost.
If you upgrade every year or two, the monthly plan may be cheaper because you never reach break-even.
If you keep devices longer, prepaid ownership spreads the cost and avoids ongoing device financing fees.
Break-even is the month where the extra monthly cost of the plan has matched what you would have paid upfront for the phone.
Decision guidance
Monthly plans can be cheaper for short upgrades, while prepaid ownership wins if you keep the phone longer.
- Frequent upgraders often benefit from monthly plans.
- Keeping a phone longer tends to favor prepaid ownership.
- Add device insurance to the option you plan to use so the comparison is complete.
Signals that usually tip the decision
- You plan to keep the device beyond the typical upgrade window.
- You value carrier perks more than outright ownership savings.
- You prefer to avoid long-term financing or contracts.
Scenario FAQ
Does prepaid include the same data plan?
Use the actual prepaid plan price you would choose so the monthly cost reflects your real data needs.
What about trade-in credits?
Subtract trade-in value from the one-time price to reflect your net device cost.
Are activation fees included?
Add activation fees to the one-time cost if they apply to prepaid.
Does carrier financing change the calculation?
If financing, compare the financed monthly payment to the prepaid plan monthly cost.
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Keep exploring or return to the main calculator for a neutral comparison.